how do i fix the super salary sacrafice which is not suppsed to be taxed but wrongly taxed for one pay

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Hello, one of our employee has been taxed on gross pay rather than gross  minus salary sacrifice in last pay run. after reading the post on reckon community, I have fixed it for this current pay but want to know how do I fix the last pay where the employee has been taxed more than it should. thanks

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Posted 2 years ago

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John G, Information Support Analyst

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Welcome to the Reckon Community, Jenny.

Has the PAYG tax for the incorrect payrun been paid away to the ATO?  If it has the solution is a little more complex - please see you accountant for the best steps to take.  

If not, the solution is straightforward 
  1. You will need to create a deduction item and an additional pay item for the difference in the PAYG tax.  
  2. Open the original pay and remove the super salary sacrifice item and re-enter it - it will re-enter with the correct tax treatment.  
  3. Less tax will be taken out so Net Pay will be higher that actually paid, so enter the deduction you created for the tax difference to bring the Net Pay back to the amount actually paid.
  4. In your next pay, or as a special pay run, include the additional pay item to give the difference in PAYG amount to the employee.   

Hope this helps.

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Thanks a lot John

I have created deduction and Addition in payroll item. Just want double check if I have the tax right

For deduction and addition, I have done the following
Tax tracking - none
Tax, PAYG or State Tax - non ticked
Is that right?

Also why the super salary sacrifice had tax tracking as gross payment and PAYG ticked as tax? I am bit confused. Can you recommend some readings on those topic for me? I would like to know if those items will be on payment summary. Sorry for too many questions Thanks