attempting to setup paying an employee 2014 first business edition

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hi guys. I have been running a small business since 2014 hence the software year. Until this point I have not paid myself a regular wage but have only taken drawings/retained profits after tax time.
Now things have changed and I need to set up a regular wage with PAYG and super, etc. I cant seem to find any way to do this, is the first business edition too basic for this purpose? And if so how can I upgrade, do I simply purchase newer upgraded software and import company file into this? I'm pretty lost here and the reckon website has been no help so far

Thanks
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Brian

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Posted 1 year ago

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Linda Putland, Accredited Partner

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Hi Brian - if you are not able to turn on Payroll features using the Edit menu - then Preferences - then Employees & Payroll - then yes, your version will need to be upgraded to a minimum of Reckon Accounts Plus to have the payroll functionality....However!!!!  are you a sole trader or in a partnership?  if so - then you cannot be an employee of your business - you will just take Drawings (which is a debit to an Equity account in your Balance Sheet) and payments to your super fund will be claimed as a deduction in your personal tax return...  You have mentioned that you have done this after tax time - you can also do this regularly if you wish... but if your business is run through a company structure - then yes, you can be an employee and have the usual PAYG withheld and SGC super paid...  hopefully this info helps you?  cheers Linda
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Brian

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Hi Linda

Thanks for the reply, there is no payroll option in the preferences section. I am running a Pty Ltd for insurance and work purposes but I am the only employee.

So if I purchase a newer version of Reckon Accounts Plus can I just load my last company backup file into it and have all my previous invoicing and bills,etc still recorded? Is it that easy or am I in for a hard process?

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Linda Putland, Accredited Partner

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Hi Brian -not hard at all - purchase an upgrade to the Plus version and all your data will be upgraded and you can begin to use the payroll functionality... perhaps check at http://go.reckon.com/training-accounts/ for webinars and other training to get started with using Reckon Accounts payroll.... there are also you tube videos that will assist.  Search for "reckon accounts payroll"  and you will have lots of options to watch!  :)
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Annette

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If it is only you then you can set up a cheque as a recurring transaction with a debit to Wages/Salaries expense line of the gross amount and a credit to PAYG Withholding Tax liability line (you may have to set this one up). Calculate 9.5% of the gross amount and allocate as a debit to the Superannuation expense line and the same amount as a credit to the Superannuation Payable liability line. In total you will have 4 lines on the cheque.
The actual value of the cheque should balance with what you have put into your bank account with the two super amounts offsetting each other.
At the end of the month/quarter when your payroll liabilities become due Write Cheques to the ATO and to your Super fund for the period balances in your PAYG WH and Super liability accounts. When you have made these payments you payroll liability accounts should say $0 (to the date you have paid them to.  If not you may have processed another payroll prior to making that months payment.)
These transactions will record your payroll expenses and payroll liabilities as you go for an accurate financial report.