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Tax not calculating for employees contributing additional tax

JEN

Hi Team,

I have found an error in doing the pay run with regards to two employees not being taxed. Incidentally, these two employees happen contribute extra tax (up tax variation).

I rang Reckon Support earlier today (11.19am) to report this matter, and to be told the matter was being looked at and should be resolved within half an hour. It's now 2.45pm and no one has called back. I have called twice already to find out what is happening only to be told it's still an unresolved issue.

I need to do the pay run asap! Why is it taking so long to fix this problem?

Thank you.

Comments

Tanvi_kataria

Hi @JEN

Apologies for the inconvenience.

Could you please provide the Case Number so I can investigate and update you on the progress? Thank you!

Regards

Tanvi

JEN

https://community.reckon.com/discussion/comment/20653366#Comment_20653366

Hi Tanvi,

I wasn't given a case number by Technical Support. I was just sent a link via email to grant them technical support and advised the problem would be resolved within half an hour.

Thank you.

Rav

Hi Jen

I'm not quite sure what's happening here but I've tracked down your case (case number: CAS-342183-G6W8K6). Let me get some attention on this along with contact arranged for you.

JEN

I can't wait any longer for phone and online support today. I made no changes to these two employees records that would affect their tax.

I will have to estimate the tax for the two employees and hope someone at Reckon will sort this out.

JEN

https://community.reckon.com/discussion/comment/20653368#Comment_20653368

Hi Rav,

I can't wait any longer today to get this sorted out. I have to pay my employees and will have to estimate their tax.

I hope it's rectified by tomorrow.

Kali

Hi,

This has happened to me today too! I have inadvertently overpaid two employees because of it.

What is the update on this one @Rav?

Employee 1 - salaried employee, no PAYG was calculated at all

Employee 2 - hourly rate employee with an upward variation of 12% - which was paid but the normal PAYG instalment was not.

Kali

Diving deeper into this i can also see that Employee 1 received a pay rise a couple of weeks ago and PAYG was not increased accordingly @Rav.

Rav

HI @Kali

From what I understand, our support team resolved the issue in Jen's book last week. If you're encountering something similar, I'd encourage you to give our support team a call or shoot through a web ticket here so we can investigate and in particular, include what you're comparing the tax calculated in Reckon One to on the call or ticket.

Kali

Hi @Rav - i am on the phone to support and they cannot work out the issue.

What was the resolution for @JEN?

vittoria

same problem for one employee on the same day -19th

rang support no case number and still no resolution???? had to guessimate the tax.

whats going?

@Rav can you please share solution.

vittoria

PS MY EMPLOYEE not contributing additional tax all I did was change rate of hrly pay

Rav

Hey guys,

It would be helpful to get specific examples and details. In Jen's case, the employee had upward variation ticked. Is this the case for you as well @Kali & @vittoria?

What is the make up of the pay run that you believe is tax is incorrect on, along with the tax setup of the employee.

What are you comparing the tax calculation in Reckon Payroll to?

Kali

Employee 1 - is on a gross weekly wage of $1,352.40:

Reckon payroll calculated $0 PAYG; however, correct amount should be $256 as per ATO weekly PAYG schedule.

The discrepancy in PAYG started when I increased her salary a couple of weeks ago.

1st payment since increase - PAYG was deducted of $226 (withholding amount for old salary); did not increase to $256 as it should have.

2nd payment since increase - $0 PAYG deducted.

Employee 2 - has an upward variation of 12% - the PAYG is being calculated at 12% and not including the normal PAYG amount as well.

Both employees use tax scale 2.

vittoria

The system did not calculate any tax at all for this employee -established employee only change hrly rate.

and it's not like it is zero and i can adjust it-just blank

Kali

Yes, as @vittoria mentioned - the PAYG is completely absent - doesn't allow you to add/edit a PAYG figure.

JEN

https://community.reckon.com/discussion/comment/20653446#Comment_20653446

Hi Kali,

My issue was resolved but I would like to know what happened. I haven't encountered this problem before.

I have asked one of the Dev Team members to check this for me.

Kali

Hi @Jen,

Did they happen to tell you how it got resolved?

I was promised a call back within 30 minutes… it's now the 1-hour mark

JEN

https://community.reckon.com/discussion/comment/20653459#Comment_20653459

Hi Kali,

I'm still waiting on the answer from the Dev Team how the problem was resolved.

I was promised a phone call within 30 minutes (Wednesday 19/3) but they never rang until the next morning to advise they fixed the problem.

vittoria

Hi Kali & Jen

well I called last week- Wednesday couldn't resolve so left it with them and have heard nothing more.

Rav

Employee 1 - is on a gross weekly wage of $1,352.40:
Reckon payroll calculated $0 PAYG; however, correct amount should be $256 as per ATO weekly PAYG schedule.
The discrepancy in PAYG started when I increased her salary a couple of weeks ago.
1st payment since increase - PAYG was deducted of $226 (withholding amount for old salary); did not increase to $256 as it should have.
2nd payment since increase - $0 PAYG deducted.

@Kali

In the above example, is that a full time employee or a casual?

Are you entering dates into the earning item to calculate tax using the tax table for daily or casual workers (NAT1024)? Does this employee also have upward variation selected?

I've tried testing this out in my own book using as much of your example as I could replicate, where I created a pay run for;

$1352.40 ordinary earnings
Casual employee on tax scale 2
No dates entered into the earning item

Tax has calculated as below -

Kali

Hi Rav,

She's a full-time salaried employee. She's been employed since 2005.

I have never had a problem with her PAYG being calculated correctly until I increased her salary last week. Since then, her PAYG is not calculating correctly.

No upwards variation for this employee and no, i am not entering dates into the earning items.

Kali

Update: Support just called back; they have a work around for employee 1.

You need to go in and change their tax scale to another tax scale, remove the affected employee from the pay run, correct their tax scale back to what it was supposed to be, and then add employee back to run. This will 'refresh' their tax.

They don't know the cause of it.

Regarding employees with upward variations this is still ongoing investigation as they can now see this has not been working properly for a while resulting in employees being undertaxed. @Rav I'd suggest notifying customers of this error as employees are going to be left with a tax bill at EOY.

vittoria

THANK YOU @kali it worked

it concerns me when things like this happen

Kali

Me too @vittoria!! Me too!

JEN

https://community.reckon.com/discussion/comment/20653470#Comment_20653470

This is very worrying about the upward variations not being taxed correctly. We need answers asap!

Thank you, Kali, for giving us the heads up.

Rav

@Kali & @vittoria

When you create this pay run, are you doing so by selecting the option to Copy Pay Items from Previous Pay Run or by selecting the option Use Default Pay Items?

I'm trying to replicate the behaviour you're encountering as much as I can to establish what's causing what you're experiencing to see if we have a wider issue at play here.

vittoria

@Rav have always used default pay items

Kali

Hi Rav,

Support confirmed it was a wider issue at play. We played around with what you suggested, and it made no difference.

The 'copy pay items..' option is very useful; however, very dangerous if you have changed anything in their pay setup from the previous week - I do know to look out for that - which is very annoying in itself.

Rav

Morning everyone,

Our teams are investigating this at the moment but just a question for you all.

Just prior to you noticing the issue with tax not appearing, did you amend anything in the respective employee's profile?

@Kali I know you mentioned that one of your employees had a pay increase so I assume you amended the salary amount in their Pay Setup. Did you also change anything in employee 2's employee profile prior to you noticing the tax component not appearing?

@JEN & @vittoria same question for you as well. Were there any changes made to the profile information for the employees whose tax weren't appearing in the latest pay run?

JEN

https://community.reckon.com/discussion/comment/20653498#Comment_20653498

Hello Rav,

The only changes I made in the two employees profiles affected by this tax glitch was to change their leave accruals from "Per pay" to "Per time worked". I actually did this for all our employees (make the changes) prior to the last pay run, so this would have affected them as well, but it didn't.

Thank you.

Kali

@Rav yes, just the pay increase for employee 1.

I think employee 2 is a separate issue - as support believes this hasn't been working correctly for a while… no changes were made in her file and i only noticed her tax wasn't calculating correctly as i did a review of all employees after the glitch with employee 1.

JEN

Hello @Rav

I am still encountering the same problem from last week regarding the tax not deducted but it was only for one of the two employees this time.

I did what @Tanvi_kataria suggested and removed the tax details and add them back in, and refresh the details in the pay run. This did fix the problem but I still want to know why this is happening.

I don't want to have to check these details every week but I have to until this problem is resolved.

Thank you.

vittoria

Hi @Rav no change to profile just an increase in pay rate

Rav

Hi everyone

Just to give you an update. Our teams have narrowed this down to affecting employees who have upward variation added and have had their profile edited in some way (eg. a change in pay rate), pay setup etc prior to the pay run.

We're working on a solution for this at the moment which is currently going through testing and it shouldn't too far off from being released.

In the interim, as has been mentioned above, editing the employee's profile again in some way causes a refresh which will return the tax component to the pay run.

Apologies for the confusion and hassle this is causing at the moment, I'll keep you posted on release of the fix as soon as I have confirmation from our product dev team.

SusanR

@Rav this happened this morning and no employee profiles had been updated. I t affected 3/8 employees and the work around fixed it - however it is not only employees with variations. 1 of the 3 this today has no variations to the salary at all. Can you please post an update asap?

Rav

Hi everyone,

As you may have seen Reckon One has recieved an update a little earlier this morning.

As part of that update, it carried a fix for the issue where tax was not being calculated in a pay run.

Just a note though, if you have any employees with a tax variation eg. upward variation % or $ values, I'd recommend that you review the employee profile information and ensure the correct variation is saved to their profile. If not, please add the respective variation to the profile information.

This should resolve this issue but if you notice this occur again when you next create a pay run, please sing out as we're monitoring this closely.

Thanks everyone!

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