Payment Summary - ETP

  • 1
  • Question
  • Updated 2 years ago
  • Answered
I have an employee, who was made redundant, whose ETP Payment Summary is having an amount as " Total Tax Withheld " and " Taxable Component" . The two components of her ETP were " ETP Post June 83 " and " ETP Payment in Lieu of Notice ". Should those amounts appeared on her Payment Summary ? Thanks.
Photo of James

James

  • 402 Points 250 badge 2x thumb

Posted 3 years ago

  • 1
Photo of Reckon FAQs

Reckon FAQs, Employee

  • 10,138 Points 10k badge 2x thumb
Hi James,

Thanks for asking and sorry for the delay in getting back to you.

Check your circumstances against our full guide for terminating an employee which contains a section on ETPs.

Hope this helps.


regards,
John.
Photo of James

James

  • 402 Points 250 badge 2x thumb
Hi John
Thanks for the notes.
Do you know how to fix a payment summary where the non taxable amount has been picked in the taxable section ?
Regards
James
Photo of Carolyn Foster

Carolyn Foster

  • 70 Points
I am having the same problem.  ETP tax (under the cap) is 32%, however when I print Payment summaries they calculate at 49%. Any ideas on how to fix?
Photo of Reckon FAQs

Reckon FAQs, Employee

  • 10,138 Points 10k badge 2x thumb
Hi James,

What was the non-taxable ETP item?
Generally, only a death benefit has a non-taxable component, and unfortunately Reckon Accounts does not handle that type of payment.

Otherwise, the time will be a Lump Sum item that appears on the INB payment Summary.


regards,
John
Photo of James

James

  • 402 Points 250 badge 2x thumb
Hi John
We have two components for the ETP
ETP Post June 83 -taxed @32 %
ETP Payment in Lieu of Notice
My understanding is since both items fall below the tax free threshold, they are both non taxable. When i check the ETP Payment summary, the first item is taxed at 32% and the second item is taxed at 49 %

Is the tax tracking an issue ?

Regards

James
Photo of Reckon FAQs

Reckon FAQs, Employee

  • 10,138 Points 10k badge 2x thumb
Hi James,

The ETP tax tracking is correct.  The Individual non-Business PAYG withholding scales are separate to ETP tax scales.  
Please discuss with your Accountant on the tax status of this payment and your employee.  

regards,
John.
Photo of Wendy Adams

Wendy Adams

  • 60 Points
Hi John

I have to do a death benefits ETP for unused annual leave and rdo's to the dependant, what type of tax tracking account do I use.  There is a tax component but nil tax is withheld.

Regards
Wendy
Photo of Reckon FAQs

Reckon FAQs, Employee

  • 10,138 Points 10k badge 2x thumb
Hi Carolyn,

Welcome to the Reckon Community.

sounds like your ETP payroll item has been assigned to the wrong tax tracking type.  Check out the guide mentioned above.  You should use Post June1983 Untaxed Element (low rate threshold) for payments that will attract either the 17% or 32% tax rate, depending on the age of the employee.

Hope this helps.

regards,
John
Photo of Carolyn Foster

Carolyn Foster

  • 70 Points
Hi John,
I looked into the date of birth this morning and yes it was over the Preservation by one year.  When I amended the Payroll item to reflect this, it calculated correctly.
Thanks again
Carolyn
Photo of Reckon FAQs

Reckon FAQs, Employee

  • 10,138 Points 10k badge 2x thumb
Great to hear Carolyn.

regards,
John.
Photo of James

James

  • 402 Points 250 badge 2x thumb
Hi John
I have 4 employees who have an amount in the " Reportable Employer Superannuation Contributions " section of their Payment Summaries.
They are paid 9.5 % Super and they do not salary Sacrifice.
Can i can fix it ? Thanks
Regards
James
Photo of Reckon FAQs

Reckon FAQs, Employee

  • 10,138 Points 10k badge 2x thumb
Hi James,

Identify which payments are being recorded to RESC - Super Report by Employee Report and add in the RESC Amount field.  The Report will display all pays for each employee.  Check the pay that has a RESC amount and determine why that amount was posted to RESC.  

Is there something common about these employees - eg using one particular super payroll item which is incorrectly configured - like an EA instead of a SA.  

Next, could be due to manually entering/changing the amount; paying when $450.00 in the month was not earned?

You'll need to open the affected pays, delete the super and re-enter it correctly.  Check the amounts of super being calculated.  


regards,
John
Photo of James

James

  • 402 Points 250 badge 2x thumb
Hi John
Thanks for the valuable  info.Have managed to sort it out.
Thanks for your help.
Regards
James
Photo of James

James

  • 402 Points 250 badge 2x thumb
Hi John

 

I am trying to do a raise for one employee from 1 Sept 2016.

 

I got the following response :

 

“ Unable to save the record. Its effective date  conflicts with existing history record.

   Choose another effective date or update that history record “

 

How do I fix it ? Thanks

 

Regards

 

james