Tax Deducted from Pay Roll.

Martin Teh
Martin Teh Member Posts: 18 Reckoner Reckoner
edited March 2023 in Reckon Accounts (Desktop)

I have a just processed a new part time employee on a fortnight pay cycle. His gross salary is $1276.92 and the tax deducted is $160. The employee advise that the tax by tax calculator should be $118.04. My Reckon Enterprise Tax Table Version is 2223312 and updated as at 1/7/2022.

Can someone explain the reason for the difference in tax deducted?

Thank you.

Martin

Best Answer

  • Acctd4
    Acctd4 Accredited Partner Posts: 4,208 Reckon Accounts Hosted Elite Expert Reckon Accounts Hosted Expert
    edited March 2023 Answer ✓

    Hi Martin

    • Is the employee a Resident for tax purposes ?
    • Is he claiming the Tax-Free Threshold (TFT) ?
    • Does he have a HELP (previously “HECS”) debt ?
    • Is he claiming any offsets ?

    Based on the fortnightly resident tax tables, neither of those amounts are actually correct 😬 I've tested multiple tax configuration scenarios & none calculate the PAYG as either of those amounts.


    If claiming the TFT, the PAYG should be $ 132. If not claiming the TFT, it should be $ 316.

    Your RA program/tax table version are the current (correct) one so it sounds like there’s a problem with your employee tax configurations &/or your Payroll Items.

    Check you have the correct setup in the Taxes section of the employee’s record ...in particular these highlighted fields:

    image.png


    ... & also check the setup of each of the Payroll Items used on his Paycheque.

    If you're still having trouble identifying & correcting it, feel free to get in touch with me direct ☺️

    Shaz Hughes.png

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