How do I adjust the amount of extra tax (PAYG) if it varies each pay period?

Richard Shorrock-Browne
Richard Shorrock-Browne Member Posts: 10
edited April 2020 in Accounts Hosted
How do I adjust the amount of tax (PAYG) deducted if it varies with each pay period? My employee has a fixed income from a Super fund, and I adjust the tax payments on their casual wage to allow for this each cycle.

Comments

  • Richard Shorrock-Browne
    Richard Shorrock-Browne Member Posts: 10
    edited October 2019
    Thanks Kevin, I did try that but it comes out on the pay slip as other than PAYG and I wasn't sure how Reckon would "account for it" - pardon the sad pun, and whether the Liabilities would be elegant when being presented to my accountant. My only solution to date is to manually edit the employee details each pay cycle under the "Extra tax" tab - but it is clunky. It would be nice if it could be edited at the pay slip end of the process, which I tried initially but it defaulted back when I submitted the pays.
  • Richard Shorrock-Browne
    Richard Shorrock-Browne Member Posts: 10
    edited October 2019
    Thanks again Kevin, That may prove to be the easiest and most elegant answer.
    Sadly I am a GP not a book keeper, and as an accountant I make a good GP!
    It will certainly be less clunky.
    Cheers.
  • Kwikbooks (Professional Partner)
    Kwikbooks (Professional Partner) Member Posts: 824 ✭✭✭
    edited April 2020
    Hi Richard

    1. You can manually change the tax each week whilst doing his pay. or

    2. You can change his Tax code to from 2-TFT to something else higher like No threshold.

    3. On his employee profile on the tax tab, there is a place to put 'extra tax' 'tax rebate' 'tax %'

    Personally I would calculate his average earnings p.a or on the highest week he works or 38hr week, add his fixed super earnings, then recalculate how much extra tax he needs to pay each week, + some for good measure.

    Use option 3 'extra tax' to enter the amount each week extra tax he needs to pay.

    This will calculate tax each week based on his earnings + add this amount to the normal tax.  This will appear in the PAYG column of the summary.
  • Kwikbooks (Professional Partner)
    Kwikbooks (Professional Partner) Member Posts: 824 ✭✭✭
    edited October 2019
    Technicalities Kevin, Richard asked his options, this is one of 3, one would presume Richard would be on top of a new TFD form, but never have I heard the ATO complain they were getting more Tax than they should each week signed form or not. 
  • Richard Shorrock-Browne
    Richard Shorrock-Browne Member Posts: 10
    edited April 2020
    Thanks for the thoughts.
    Up to now I have had a paper based payroll, that suited me well for 30 years!
    STP has dragged me up to date. Overall it is easier, but just clunky around this issue.
    I was having to calculate the variation anyway each pay period to do in paper based, but it is clunky having to edit the Employee profile each pay cycle. It worked though, where editing the pay sheet didn't - it reverted when submitted based on the hourly pay rate and tax withholding calculator.

  • Kwikbooks (Professional Partner)
    Kwikbooks (Professional Partner) Member Posts: 824 ✭✭✭
    edited October 2019
    Hi Richard

    Not sure I am interpreting your last comment correctly. If you are using hosted, you should not have to edit the profile each week.  Whilst the persons create pay is on the screen and it has calculated tax as per gross, simply override the tax amount to the required higher amount and save or next. i.e calculated tax -198.84  overwrite this to -221.84.  

    If you make any changes to the pay after you override the tax then yes, it will revert back to the calculated amount.  It has to be the last entry before save/next.

    Your best option is to add extra tax under the employee's profile this does not have to be entered each week it is permanent until changed,
  • Kwikbooks (Professional Partner)
    Kwikbooks (Professional Partner) Member Posts: 824 ✭✭✭
    edited October 2019
    Fully aware of what is required Kevin, as I have stated, I was answering the question put forward in regard to reckon, my advice for Reckon was not incorrect in regard to his choices, you have taken this and put your own twist on it as usual.  I did not advise him 'not' to do a new TFD. You have added 2+2 and came up with 7, ....

    'Personally you actually don't have the option to do that. He should be filling out a withholding variation if he wants more tax taken out. That's the law" .....

    So if he fills out a TFD does the reckon option exist or not?????

    The difference here is Kevin I haven't sold Richard short, just because he is having an issue how to fix in reckon doesn't mean he isn't across his legal obligations.

    If the question was..... "to use this method do I need a new TFD"... then my answer would have been yes!!!!
  • Jacqui Allen
    Jacqui Allen Member Posts: 238 ✭✭
    edited October 2019
    I had a similar issue, we used the percent option tax 8-No TaxC determine the percent of tax ie divide the tax by the gross of a couple of previous pays to get an average ie 36 / 500 = 0.072  = 7.2%?I would round up 7.5%
  • Richard Shorrock-Browne
    Richard Shorrock-Browne Member Posts: 10
    edited October 2019
    That might have been the problem, it wasn't the last employee I processed which might explain why it reverted.
  • Richard Shorrock-Browne
    Richard Shorrock-Browne Member Posts: 10
    edited October 2019
    Thanks for that Jacqui. I'll look at it next cycle. 
    Richard
  • Kwikbooks (Professional Partner)
    Kwikbooks (Professional Partner) Member Posts: 824 ✭✭✭
    edited October 2019
    Richard I think you misunderstood, it has to be the last thing done on the persons pay before you go to the next employee, it doesn't have to be the last employee done.