Net Pay not adding up?

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mich
mich Member Posts: 10 ✭
in Reckon One
Screen Shot 2023-05-03 at 1.18.19 pm.png

I'd just like to confirm if I understand this properly as the math isnt adding up for me.

Is net pay the amount we are meant to pay the employee after we have deducted taxes, super and allowances? Because when I subtract these numbers on a calculator it doesnt seem to equal the net total and I'm confused why.

By my thinking it should be $5000 (gross) - tax (932) - super (525) which equals 3543. However the net total is saying $4068.00

What am I missing?

Answers

  • Rav
    Rav Administrator, Reckon Staff Posts: 15,392 Community Manager Community Manager
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    Hi Mich

    The net total figure that you see on that screen is earnings - tax ie. $5000 - $932 = $4068.00

    The super component has separate treatment and is a component that is calculated from the employee's earnings.

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  • mich
    mich Member Posts: 10 ✭
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    So considering that super is sent off to their superfund as a separate transaction, does this mean that their take home pay would be $3543 (4068.00 - 525)?

    I was understanding net pay to mean what the employees take home pay is after super, taxes etc have all been deducted.

  • mich
    mich Member Posts: 10 ✭
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    bump on this as I'm still having this issue and it's quite frustrating to deal with :(

  • Janine Attwood-Graham
    Janine Attwood-Graham Member Posts: 35 ✭
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    Super doesn't come out of their pay - it is calculated on their pay and gets sent separately to their superfund - the company/firm/business pays super in addition to their salary. Only their tax comes off their pay in your instance above. So the net is correct.

  • mich
    mich Member Posts: 10 ✭
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    so in this case the employee takes home 4068 in their hand and then i pay the 525 separately to the superfund?

  • Janine Attwood-Graham
    Janine Attwood-Graham Member Posts: 35 ✭
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    Yes, that's correct.

  • mich
    mich Member Posts: 10 ✭
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    Thankyou!! I thought it must have been something like that.

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