Tax Deducted from Pay Roll.
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
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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:
... & 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 Dip(Fin) ACQ NSW, MICB
*** Reckon Accredited Partner (AP) Bookkeeper - specialising EXCLUSIVELY in Reckon Accounts / Hosted ! ***
* Regd BAS Agent (No: 92314 015)* ICB-Certified Bookkeeper* Snr Seasonal Tax Consultant since 2003 *
Accounted 4 Bookkeeping Services
Ballajura, WA
(NB: Please give my post a Like or mark as Accepted Answer if I have been able to resolve your query as this helps others when seeking solutions!)
2
Answers
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Hi Shaz,
Thanks for your prompt response to my query. We have now been able to resolve the issue. Gratefully appreciated.
Regards
Martin
1 -
Great to hear @Martin Teh ☺️
Shaz Hughes Dip(Fin) ACQ NSW, MICB
*** Reckon Accredited Partner (AP) Bookkeeper - specialising EXCLUSIVELY in Reckon Accounts / Hosted ! ***
* Regd BAS Agent (No: 92314 015)* ICB-Certified Bookkeeper* Snr Seasonal Tax Consultant since 2003 *
Accounted 4 Bookkeeping Services
Ballajura, WA
(NB: Please give my post a Like or mark as Accepted Answer if I have been able to resolve your query as this helps others when seeking solutions!)
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