Salary Sacrifice

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Susan Ross
Susan Ross Member Posts: 8 ✭
edited July 2020 in Reckon Accounts (Desktop)
Hi everyone I have one employee who salary sacrifices $100 per week. I have set up salary sacrifice as a payroll item but it is still calculating the PAYG tax at the Gross Pay rate and when I ran a Payment Summary for this employee her salary sacrifice was not entered on the payment summary.  I am using Reckon Accounts Business 2019.

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  • John Graetz
    John Graetz Member Posts: 1,651 ✭✭✭
    edited July 2020
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    Susan

    Did you set the Tax Tracking Type to Gross Payments?  You have to do this so that the deduction reduces the gross payment amount on which tax is ultimately calculated.
    John L G
  • Susan Ross
    Susan Ross Member Posts: 8 ✭
    edited June 2019
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    Will give that a try. Thank you
  • Susan Ross
    Susan Ross Member Posts: 8 ✭
    edited June 2019
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    No just labeled salary sacrifice.
  • Susan Ross
    Susan Ross Member Posts: 8 ✭
    edited July 2020
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    Have set to Gross Payments and appears to work. Thank you.  Still not showing up on the Payment Summary for the end of the year.  Any clues why this is happening?
  • Susan Ross
    Susan Ross Member Posts: 8 ✭
    edited July 2020
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    I have labelled it Salary Sacrifice (SS) and still not showing up

  • John Graetz
    John Graetz Member Posts: 1,651 ✭✭✭
    edited February 2020
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    HI Susan.  The reason would be that the change cannot go back in time for the payroll item.  The only way now, that I know of, that you could achieve this, would be to go back into each payrun, delete the salary sacrifice deduction, then reinstate it.  However, as tax was presumably never reduced, you would need to ensure that you reinstated the original amount of tax deducted, if it changes.  You could do it this way and have it appear then as a salary sacrifice, which would then change her gross figure and compensate this with the salary sacrifice figure.  What this would mean then is that she has had too much tax taken out of her pay and would get this "back" when she lodges her tax return.  The other question is this - how have you reported it to the Super Fund when you have paid them - as a Salary Sacrifice?

    John L G
  • John Graetz
    John Graetz Member Posts: 1,651 ✭✭✭
    edited June 2019
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    Hi Susan

    It could be therefore a case of the type of problem which can occur at the end of year for some employees, where the RESC amount on the payment summary is nor correct.
    If you go to the following Knowledgebase site, this will provide you with the action that you need to correct that error - it is relatively straight forward - try Option 2.  I have had to correct it on more than one occasion in the past.  At least by doing this, you know which pay the problem has occurred in.

    http://kb.reckon.com.au/issue_view.asp?ID=3621

    John L G


  • Susan Ross
    Susan Ross Member Posts: 8 ✭
    edited June 2019
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    It was reported to Super fund as Salary Sacrifice and we manually took out the correct amount of tax (i.e. dropped her Gross Salary by $100) so that part is all OK.  I will go back and delete all the Salary Sacrifice and re-enter them and hope that this fixes the problem.  Thanks for the help.
  • Barb Allen-Guthrie
    Barb Allen-Guthrie Member Posts: 23 ✭
    edited February 2020
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    Label as SS where sorry this is not easy to follow.
    Mine is calculating on wage before Salary Sacrifice - help?
  • John Graetz
    John Graetz Member Posts: 1,651 ✭✭✭
    edited February 2020
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    You may need to provide some more information, Barb.  However, your problem could be as simple as did you record the tax tracking for the SS item as Gross Payments?  If you didn't, it is not deducting the amount from the Gross before calculating the tax.
    John L G
  • Barb Allen-Guthrie
    Barb Allen-Guthrie Member Posts: 23 ✭
    edited February 2020
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    Thanks John I figured it out finally, lots of trial and error so have typed up the instructions.  Just the actual setting up is a nightmare, and then the putting into the Employees Super Box as well to ensure it shows up in the reports to ensure I pay it.
    Cheers Barb

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