Reckon Hosted paying payroll liabilities

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  • Updated 4 years ago
In the process of paying the PAYG liability check, you have to after you created the check go to the Expenses tab a choose the account Payroll Liabilities: PAYG Tax Payments. I can not find this sub account.
I could create one but what are the parameters I need to choose then?
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erika

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Posted 4 years ago

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erika

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Shannon Sciuto

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Hi Erika, 

Are you reading from a set of instructions?  the PAYG Tax Payments account is often called a myriad of different things - essentially, its the balance sheet account that your withholding balances are recorded to when you generate a payroll payment.  It may be called payroll liabilities, paygw payable or payg withholding payable or some variation on that. 

You can check which account to use by going to Lists>Payroll Item list - selecting the paygw payroll item then 'edit'.  On the second screen (after clicking next) it will tell you which account it is using as the liability account. but.... 

Normally, the account you should be using should already be selected by default.  

I hope this helps!! 
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erika

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Hi Shannon, thanks for your reply. I am new with this program. I am following my training book ( put copy page under my question). I am doing the Tracking and paying payrol liabilities using a liability cheque. All goes well until step 8.
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Kathy Mackinlay

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If you are paying your payroll liabilities through the payroll menu you don't need to go to the expenses tab. It will take it from the liablility account that you put it in when you do your payroll.

cheers,

Kathy
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John Graetz

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Hi Erika.  I totally agree with Shannon.  The other thing is that this PAYG is not an expense at all, as the total expense for salaries has gone to salaries.  The PAYG Tax is actually a deduction from the Gross Salaries which have been paid to staff, and therefore this "deduction" should be sitting in the Liabilities section of your chart of accounts.  As Shannon stated, when you create the cheque, the Payroll Liabilities Tab has been pre-filled and so there is nothing to go into the expenses tab.  John G
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erika

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Hi John., thanks for your answer. I know it is no expense but the training guide indicate that I have to make an extra step for PAYG ( not for Super) and that I also have to go to the expense tab ( see copy I uploaded under my question
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John Graetz

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Hi Erica and Shannon.  If one reads the Instruction Manual, the process being used is "Payroll Taxes and Liabilities / Create Custom Liability Payments."  In what must now be more than 15 years of using QuickBooks and Reckon to process Payroll, I have never used steps 8, 9 and 10, because the payroll item alone, which is automatically selected using this process, enables the correct Liability Account to be used.  I don't know what anybody else has to say, but the instructions which seem to require two self cancelling entries to be added to the Expenses Tab, as far as I am concerned are just providing a form of "window dressing".  I am surely a "purist" when it comes to many things, but this is one "purist" activity which I cannot see the point in doing and I will never take extra time to put these two self cancelling lines into the cheque.  The result of just using the automatically filled Payroll Item for filling the Payroll Liabilities tab, can be seen in the respective Liability Account for everybody to see.  I guess that there could be many people who disagree with me, but I would be very surprised if I am the only one who doesn't do things this way.  John G 
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erika

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John, thanks for your thoughts. Because I just started to use Reckon and in the beginning is stated that if you don't do this extra step for PAYG it would have effect on the amounts used to calculate W2 in the Bas., I wanted to proceed this way.It is indeed a zero operation but the same amount, but once + and once -, are linked to a different subaccount. I can only imagine this has a reflection in the reports you can regenerate out all the details you put in. Otherwise I also don't see the purpose of this action.
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John G, Information Support Analyst

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Hi Erika,

Your concerns on the W2 field about the effect of the PAYG Liability Payment to the ATO was eliminated in the 2010/11 edition when Liability Cheque payments were excluded from the W2 amount.  See our article on it.

The guide you are using may be an older one.  

The liability account for PAYG withheld is set in the in the setup of the PAYG Tax payroll item.  The default is simply Payroll Liabilities but you can set it to any account or sub-account you wish.  





Hope this helps.

regards,
John
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erika

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John, thank you for this information. Little bit strange that Reckon just has send me this trainings guide if it is not actual.
Can you please inform me that the liability cheques I made to process the Super and PAYG ( what was mentioned in the guide) need to be done in de new version or need I to deleted these liability cheques I made?
Kind regards Erika
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John G, Information Support Analyst

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Hi Erika,

The correct way is to generate the Liability Cheque form from employees > Payroll Taxes and Liabilities > Pay Payroll Liabilities > enter the date range > OK > select the payroll liabilities to pay.  If the payees are different for the items you select then a separate cheque will be created for each payee.  

If you think you have done the transaction incorrectly, you can delete is (from the bank register) and redo it.  

Always make a fresh backupof your company file before doing such actions so that you can always go back to where you were before you started the task,


regards,
John.
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Sandra

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Hi John I had Reckon post me The Book Accounts Approved Training Manual 2013 and it has the same info as what Erika posted in Learning Task 98 Module 21. 
So as Erika said if this isn't actual when will Reckon update their manuals.
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erika

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Sandra, thanks for your support :)
What I now understand is to follow the guide until step 7.
My only worry is how accurate are the other learning tasks explained in the guide.
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Sandra

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Exactly my thoughts as well.
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John G, Information Support Analyst

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Hi Erika & Sandra,

I have found the guide you are referring to.  My apologies, although I am aware of the publication I do not use it myself.

Step 8 should be read in conjunction with Learning Task 59 - Adding a new taxable payroll item, Learning Tasks 61 - Setting up payroll liability accounts, and Learning Task 62 - Modifying payroll items.

Payroll items like Deductions, Super and PAYG withholding tax are amounts deducted or withheld from the employee and held by the business for forwarding to relevant parties at a future time.  These are assigned to a payroll liabilities account that is indicated in the payroll item setup (image in my post above).  The default account is Payroll Liabilities (this is a pre-defined account setup by Reckon Accounts when you turn the Payroll module on).  You can assign any account or sub-account you like here.  

Step 8 of the guide refers to a sub-account of Payroll Liabilities that they have called PAYG Tax Payments and in Reckon Accounts terminology is written as Payroll Liabilities:PAYG Tax Payments.  This sub-account can be created in the Chart of Accounts, or "on the fly" in the payroll item setup screen by adding - :PAYG Tax Payments - onto the existing account in the Liability account (employee-paid) field (see image above).

I hope this clarifies the matter.

regards,
John
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Sandra

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So John from all of the above when we do  Pay Payroll Liabilities we do up to step 7 in Task 98. As I have mentioned in other posts it gets very confusing one person says to pay one way and other say don't use the Liability Cheque area. So what is the correct way. Especially when you are learning.
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John G, Information Support Analyst

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Hi Sandra,

You must use the Liability Cheque function to clear amounts in the Payroll Liability account that are entered there by the payroll process and visible in Employees > Payroll Taxes & Liabilities > Create Custom Liability Payments, and on any reports that track whether a Liability has been forwarded.   

Although a Write Cheque or a General Journal entry will balance the liability account so that it reports correctly on the Balance Sheet, it will not clear the amounts from Payroll Taxes & Liabilites or reflect on any report that tracks it.   

When you switch on the payroll module a generic Payroll Liabilities account is created.  You can if you wish create sub-accounts for the different liabilities you handle, such as PAYG Tax, Super and various Deductions.  

When you generate the Liability Cheque payment, if the correct Payroll Liability or sub-account does not appear in the form table, you will need to select it.  

Hope this helps.


regards,
John