Profit and Loss Statement includes gross payroll expenses

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Cathy_10343932
Cathy_10343932 Member Posts: 5 ✭
edited July 2020 in Reckon Accounts (Desktop)
Reckon Accounts Premier 2019.  Profit and Loss Report includes gross payment of payroll ie net amount plus tax and also super.  I have tried and spent a lot of time trying to resolve this.  I've tried filtering the report to exclude the super but doesn't filter the tax to record net amount.  I've tried Reckon Support and they are unable to help.  Before we set up payroll I would just record the net pay in the ledger and then the net pay would display on the profit and loss statement.  Now that payroll is setup the net amount is posted to the ledger and gross amount on profit and loss statement.  Is anyone else having this problem?  

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  • Charley
    Charley Member Posts: 542 ✭✭✭
    edited July 2020
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    It's not a problem; it's the correct way of accounting for wages. The PAYG and Super are recorded as an expense at the time of wages paid and also in the balance sheet as a liability to the ATO and the Super fund, so when you pay them you're just paying off the liability, same as the GST. It's called double entry accounting.
  • John Graetz
    John Graetz Member Posts: 1,651 ✭✭✭
    edited November 2019
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    I totally agree with Charles.  It is difficult from your description to know exactly what you are doing.  Suffice to say, the setup for your Payroll Items could also have something to do with your problems.  To use some examples:
    1.  Your salaries item (gross amount) should be going to a salaries expense account.
    2.  Your Super item (gross amount) should ideally be going to another expense in the salaries area of your general ledger, so as to differentiate between the two.  Your Super item setup also has provision to state where the offset liability is to go (as indicated by Charles above)
    3.  Your group tax item should be directed to a Liability Account, usually within the Payroll Liabilities area.
    Based on what you are stating above, it seems possible that you may have the set up done in a somewhat different manner.
    John L G
  • Cathy_10343932
    Cathy_10343932 Member Posts: 5 ✭
    edited November 2019
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    Thank you for your replies and clarification, Charles and John.  Was thinking this may of been a possibility Charles, but was thinking it shouldn't reflect in the profit and loss until the super and tax is paid from the bank account.  Thanks again for the explanation :)

  • Cathy_10343932
    Cathy_10343932 Member Posts: 5 ✭
    edited November 2019
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    So apologies if this sounds really dumb, but when the Super and Tax are paid in the following quarter it will be input as another expense, is that correct?
  • John Graetz
    John Graetz Member Posts: 1,651 ✭✭✭
    edited November 2019
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    Hi Cathy.  If your setup is as I have suggested above, when you pay the SGC and Group Tax, the costs will be directed to the Liability Accounts only as they have already been expenses to the expense accounts.  When you complete each payroll, you will see the Liabilities for each category (Tax and Super) sitting in their respective Liability Account on your Balance Sheet Report.  You can use the Reckon facility to pay the Liabilities like this - ?Employees>Payroll Taxes and Liabilities>Create Custom Liability Payments.
    ?John L G
  • Cathy_10343932
    Cathy_10343932 Member Posts: 5 ✭
    edited November 2019
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    Thanks again John, i'm following you but not totally clear.  Do you know of any reckon payroll training, you tube videos that might be helpful? 

  • John Graetz
    John Graetz Member Posts: 1,651 ✭✭✭
    edited November 2019
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    Hi Cathy.  Here is where you can find a series of one or more of Reckon's YouTube videos on Payroll.  If you need some extra help, you can ring me on 0428 695454.
    John L G
  • Cathy_10343932
    Cathy_10343932 Member Posts: 5 ✭
    edited November 2019
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    Thanks John, did you try to send a link to the YouTube video on Payroll?

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