Salary sacrifice before tax Set up not reducing PAYG Tax?

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greg lord
greg lord Member Posts: 6 ✭
edited July 2020 in Accounts Hosted
I am using Reckon Hosted 2020 R2 and trying to set up a Salary Sacrifice for an employee before tax. I added it to the payroll item and marked it at SS, I have ticked gross pay. When I do a pay run, it shows as a deduction of the correct amount, but doesn't reduce their gross pay? help please.

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  • Bruce
    Bruce Member Posts: 441 Professional Partner Professional Partner
    edited July 2020
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    This is what I would expect.   The pay slip should show gross pay (before all deductions) and the amount of any deductions, e.g. PAYG, salary sacrifce.

    Important thing is to check that the PAYG W calc is correct.    Depending on the nature of the salary sacrifice item, generally speaking, PAYG will be based on Gross Pay less the Salary Sacrifice amount.
  • Linda ABC
    Linda ABC Accredited Partner Posts: 1,131 Accredited Partner Accredited Partner
    edited July 2020
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    Just check your setup of the Sal Sac item again and on the screen for Tax Tracking Type - ensure that Gross Payments is selected - this is what reduces the Gross pay by the sacrificed amount...
  • greg lord
    greg lord Member Posts: 6 ✭
    edited July 2020
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    Thanks Linda and Bruce. I have check that, and all is good from that side. I have also noticed that his tax has not reduced. Is this normal?
  • Kris_Williams
    Kris_Williams Member Posts: 3,293 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert
    edited July 2020
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    Check in the Salary Sacrifice Pay item that PAYG is ticked in the Taxes section
  • greg lord
    greg lord Member Posts: 6 ✭
    edited July 2020
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    Hi Kris, Yes it is.
  • Acctd4
    Acctd4 Accredited Partner Posts: 3,406 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert
    edited July 2020
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    Hi Greg

     

    The 2 things that affect this on the Payroll Item setup are - as Linda has said - the Tax Tracking Type needs to have “Gross Payments” selected & - as Kris has said – the Taxes window needs to have “PAYG Tax” ticked. 

    If you are confident these are definitely correct then it’s possible you may have selected the wrong type of Payroll Item at the start (unfortunately, you can’t check/edit this) or something in the employee’s record is overriding it eg if the employee is having additional PAYG Tax taken out normally?

     

    Try creating the Payroll Item again, ensuring you select “Super Contribution (Company & Employee Contribution)” as the Payroll Item Type & configure again as above.

     

    Shaz Hughes Dip(Fin) ACQ NSW, MICB

    Reckon Accredited Professional Partner Bookkeeper / Registered BAS Agent (No: 92314 015)

    Accounted 4 Bookkeeping Services

    Ballajura, WA

    0422 886 003

    shazinoz2@bigpond.com

    www.accounted4bs.com


    Shaz Hughes Dip(Fin) ACQ NSW, MICB

    *** Reckon Accredited Partner (AP) Bookkeeper - specialising EXCLUSIVELY in Reckon Accounts / Hosted ! ***

    * Regd BAS Agent (No: 92314 015)* ICB-Certified Bookkeeper* Snr Seasonal Tax Consultant since 2003 *

    Accounted 4 Bookkeeping Services

    Ballajura, WA

    shaz@accounted4.com.au

    https://accounted4.com.au

    (NB: Please give my post a Like or mark as Accepted Answer if I have been able to resolve your query as this helps others when seeking solutions!)
  • greg lord
    greg lord Member Posts: 6 ✭
    edited July 2020
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    Thanks all for your help. I deleted the original payroll item, and started again. It now works. I have no idea what happened, but glad for all your help!

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