Payroll Premier updates?

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  • Question
  • Updated 1 month ago
  • (Edited)

Hi Rav,

You seem to be hit & miss with answering people's questions/queries on here?

I saw a comment earlier (by chance) speaking of a 'patch' that fixes some STP errors - why is this not being communicated & shared under 'updates & service packs' to all members? Are there other "patches" that have also not been communicated?

I would like to think updates such as this would be important enough for members to be notified via email?

There seems to be very little communication about software updates. For payroll professionals, having a software we can rely on is extremely important.

I've been waiting on glitches to be fixed inside Payroll Premier for years; which, could be potentially putting other members at risk too. From a compliance point of view I feel these should be fixed as priority or at least members made aware of such glitches?

For example, I have been waiting over 6 months for an error to be fixed with SGC & leave loading. Currently, SGC is not calculated on leave loading which is incorrect as per the ATO guidelines. How is this not a priority to be corrected by Reckon or at the very least being communicated to members as it's potentially putting members at risk for SGC penalties.

There are so many glitches like this I have come across over the years, and to be honest, it's really quite frustrating and unprofessional.

We're weeks away from EOFY and many of us are still waiting on direction of an EOY process for STP.

It's really quite poor and I'm sorry to take my frustration out on you; however, I have been using this software for close to 15 years, and the communication to members really needs to improve and regular software updates need to occur.

I look forward to your response.

Cheers,

Kali
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Kali

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  • frustrated

Posted 2 months ago

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Kevin Russell, Accredited Partner

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You're wrong you know. As per ATO guidelines SGC is NOT payable on leave loading. There is a case it may be in the case where leave loading is paid in compensation for the lost opportunity to perform overtime. The guideline is quite clear.
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Helen Bowers

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Hi Kali. The employer is required to pay super on OTE once the earnings are actually paid to the employee. Under the Super Guarantee legislation (SGR 2009/2) an annual leave loading is not considered OTE if it relates to a notional loss of opportunity to work overtime.
Straight from the ATO!
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Kevin Russell, Accredited Partner

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Yup. We discussed this already. You are correct
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Suellen

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There are some businesses where there is no overtime opportunities, employees of those businesses under the modern award are eligible for Annual Leave Loading to be classifed as OTE for SGC purposes - as the loading is not paid to them as compensation for lost opportunity for overtime but a directive within the award.  I would think there should be a tick option within payroll setup for the businesses to be compliant within their own structure.  The ATO's ruling is ambiguous - even representatives at the ATO when I phoned to verify this ruling were unable to provide a definitive response - our Accountant Consultant advised that our business to be compliant under SGC legislation IS TO calculate SGC on Annual Leave Loading.

Upon bringing up this issue myself with Reckon some 6 months ago I was advised that the issue was "being looked at" to include in the next patch or upgrade
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Kali

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Sueellen, I couldn't agree with you more! We're also under a Modern Award so we're in the same boat. Reckon really need to do an overhaul of their product. A 'one size fit all' approach no longer works in today's payroll world.The amount of times i have been told "updates & patches" will come and they never do!
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Kevin Russell, Accredited Partner

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I wouldn't be waiting for years for updates either. I like PP but it isn't the only payroll software in the market. There's no one size fits all software
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Kali

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Hi Kevin & Helen,

The checklist on the ATO website would appear to disagree with you both?
(Edited)
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Kali

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Kevin Russell, Accredited Partner

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Kali what's yer point?
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Kali

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Kevin, I'm not sure why you're being so rude. If you can't add value to a conversation, perhaps refrain from commenting.
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Kevin Russell, Accredited Partner

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Kali what do you mean rude? I'm just using the info off the ATO website. It's pretty clear.
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Suellen

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Kali, I agree with you.  We noticed this issue also, had our accountant consultants verify that (for our firm's policy at least) that SGC was to be included on calculations on our Annual Leave Loading - I reported the problem to Reckon some 6 months ago also and yet no resolution has been advised.  We manually calculate this each pay which is a cumbersome and onerous task when we pay membership subscription to have a fully integrated payroll system which is increasingly proven to be failing.
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Kali

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Hi Suellen, thanks for your comment :)

We do the exact same thing. It really is frustrating isn't it.

Hopefully Rav has an update for us?!  
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Helen Bowers

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Hi Kali. If you have a special award that specifically gives SG (Super Guarantee) to be paid on annual leave loading, then perhaps the easiest way of entering this in Payroll is to simply put the correct figure into that one-off pay. Change to the correct dollar amount as you process that pay. We all get so used to digital processes that we like them to cover every circumstance. They may not be able to do that, so sometimes we have to revert to good old accounting and digital knowledge to make it what is required. Hope this helps.
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Kali

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Hi Helen,

It's not a "special award" it's one of the most common awards in Australia and i think you will find this is the case under most Modern Awards.

Reckon continues to be out of date in today's payroll world.

This is not just a personal opinion, I know many professionals who will not touch this software due to it being so out of date with it's functionality. 

Perhaps something for Reckon to think about.
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Helen Bowers

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Thank you Kali. To help my understanding of your problem, would it be correct to say that under that award no employee does any overtime?
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Helen Bowers

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Thank you Suellen. What modern award do your employees work under? Do any of your employees ever do overtime? In other words, in a standard pay process do you ever record overtime for anyone under their normal hours?
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Suellen

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we work under both the legal services award and clerical awards.  yes some employees do work overtime but only under execptional circumstances and those overtime hours are over and above the standard pay period hours, they are paid the o/t rates for those times.  As there is no expectations nor the regular opportunity for employees to work overtime - their 4 weeks annual leave and it's intrinsic loading are ordinary time earnings when they're taken.
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Helen Bowers

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In the payroll process of the employee working overtime, do you mark the overtime line as NO Super, of do you mark it as YES?
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Kali

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We mark ours as 'no' super
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Suellen

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Overtime is not ordinary time earnings so it is not included in SGC calculations.  The problem that the original poster has - and i also have - is that SGC should be able to have the option of being included on Annual Leave LOADING as that is a portion within our structure that DOES come under ordinary time earnings.
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Kali

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And my client's under the General Retail, so there's 3 Awards straight up Reckon's stringent approach doesn't work for.
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Helen Bowers

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Hi Kali and Suellen. Thank you for the clarifications. It is my opinion that if any employee is paid overtime during the year, then the 17.5% loading on their annual leave directly relates to compensation for loss of potential overtime earnings.
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Suellen

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thank you - but it still doesn't answer the fact that Reckon have failed (so far) in their responses to including an option in their payroll software to accommodate a legislated ruling - where it is an ambiguous one and up to many areas of interpretation that even the ATO can't provide an eloquent answer on - there needs to be the option to include the calculation within the programming as opposed to the current system which does not allow for any options within individual businesses, and many found not to be compliant with legislation when they believe they're covered by using a paid subscription integrative program.
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Kali

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Thanks Helen. We too have received conflicting advise to your opinion so we'll continue to process as is to avoid SGC penalties.

I appreciate your opinion and time on the matter though so thank you.

If only Reckon could be as actively present as you are.
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Robyn Kelly (Partner), Accredited Partner

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You can tick the Holiday / Leave Loading Payroll Item within the superannaution payroll tem and it will then calcualte 9.5% on the leave loading item, if that's what your business is going to do.
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Suellen

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Yes, it is ticked - but it doesn't calculate SGC on the loading - it includes the leave hours in the calculation but still omits the loading value from the SGC 
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Kali

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I'm sure mine will be too, but where exactly are you both talking?
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Kali

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Helen, do you have any thoughts on the other parts of my email? Re: updates/patches?

How do you get notified of these? Or where do you go to access them?
(Edited)
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Helen Bowers

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Hi Kali. I believe that the Reckon products I have been using for over nearly 30 years as a Certified Tax Adviser, are the best on the market. Reckon Accounts Premier and separately Reckon Payroll Premier. I have always been most grateful when I have rung for assistance. The Reckon website is a good place to start, but for more detailed assistance, a telephone call is very helpful. Reckon generally sends out regular emails to all Advantage Members (and of course Professional Partners, which I have been for all these years). For all my clients over many years I always suggested they join as members to get the best support, as I believe that is the best way to get these products working well for your firm.  Reckon itself works very hard to ensure their products are up to date and with the ever changing legislation. Hope this is of assistance.
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Kali

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Hi Helen,

I am glad you've had that experience, as a user & professional partner for 15 years i can't say i have had the same experience. I find the communications very poor and the functionality very basic. There needs to be regular updates & patches to fix known issues instead of "workarounds"
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Kali

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Rav still no response?
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Kali

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The other default that is incorrect is when you process an ETPayment on termination for payment in lieu of notice, the SGC is defaulted to 'no' when it should be 'yes'
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Karina

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I too would like to calculate SGC on the loading as our business falls into the category as outlined by the ATO  The only way I can see around this issue is to create a new pay item called annual leave loading and label it with the SGC option to include it in the calculation. Either way though its a manual calculation when it doesn't need to be.
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Kali

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Hi Karina,

Rav never got back to me/us unfortunately, so i am still currently calculating the SGC manually on leave.

Cheers,

Kali