PAYG withholding error

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  • Problem
  • Updated 5 years ago
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Hi - I have discovered that the PAYG withholding is incorrect in Reckon when checking it against the ATO's tax withheld calculator. The tax deducted from Reckon is more than the ATO's tax calculator. I have checked everything and it seems all fine with the setup, any suggestions as to how to fix this
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Kylie

  • 70 Points

Posted 6 years ago

  • 1
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Mirko, Alum

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Hey Kylie,

Welcome to the Reckon Community and thank you for raising your concerns with us.

ATO tax tables are replicated within Reckon Accounts, and are updated each year.

To check which years tax tables you are currently running, click on Employees > Tax Table Information....



You should have the version dated as 01/07/2013, which is the 13-14 Financial Year's tax tables.



If as in the picture above, your tax tables are correct, there must be a setting which is out.

The most common setup error affecting PAYG tax, is that the SUPER pay item was set up to include tax.

To check on how SUPER was set up, click on Lists > Payroll Item Lists and then right click on Super and select Edit Payroll Item.



Once the Edit Payroll item box pops up, click on Next until you reach the Taxes screen, ensure that there are no ticks next to PAYG Tax and State Payroll Tax. If either item is ticked, untick them.



Hope this helps you Kylie, would love to hear how you go.

Thanks,
Mirko
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Claire Thomson

  • 60 Points
I too have had this problem.  I unstick PAYG tax and then click next until finish appears.  However this change does not save and when I go back into the edit payrole item the PAYG Tax box remains ticked.  Help
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Hoang, Alum

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Hi Claire,

Welcome to the Reckon Community.

You will experience this issue if a Super payroll item has become corrupt after your last pay run in the previous version.

Workaround

1.    Create a Portable Company File (companyname.QBM);


2.    Restore this Portable Company File;


3.    In the restored file, edit your super payroll item (Lists > Payroll Items), remove the tick for PAYG Tax and save changes;


4.    Still in Payroll Item Lists, click on PAYG tax and move to the 3rd screen: Include Wages in PAYG Tax.  Scroll down the list and if your Super Item has a tick, untick it.

You should now be able to create these pays with the correct amount of tax calculated. 


 If the problem persists, then restoring the Portable Company File failed to clean the corruption.  Continue with the following steps:

  1. Create a new super item; 
  2. Replace the old super item with the new super item for all affected employees;
  3. Make the old super item inactive. 

You should now be able to create these pays with the correct amount of tax calculated.


Regards,
Hoang