State Payroll Tax Rate change

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  • Updated 1 year ago
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A business in regional Victoria is eligible for a reduced rate of 3.65% for State Payroll Tax.  How do I change the settings in Reckon Accounts Business ?

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Leanne

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Posted 1 year ago

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Kevin Russell, Accredited Partner

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Why do you need to change anything in Reckon? Just lodge the return via PTX Express. Problem solved.
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Leanne

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Hi Kevin,

We have set Reckon up to calculate the state payroll tax that is payable by this company monthly to help the onsite bookkeeper.  Then I review at end of year.

Cheers
Leanne
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Kevin Russell, Accredited Partner

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You cannot change the payroll tax rate within Reckon. I would use a calculator to determine the tax payable
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Leanne

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Bugger :(   I thought this would be the case.  Just when I finally get the process flowing nicely there's a spanner thrown in the works :( 

Thanks for your replies Kevin :)
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Kevin Russell, Accredited Partner

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You wanna complain? I have six states in which I lodge payroll tax decs. Its a blasted nightmare. Some are monthly and some are annual. Dont know why we cant get rid of income tax and just let the states collect it like in the good old days
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Leanne Dew

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Ive just read they have an issue with SA and VIc not calculating the new % and they suggested a work around by exporting to excel and adjusting the % yourself. As for me, my state tax reports are a complete mess with NSW employees added into Qld items and vise versa. My entries are correct so how on earth can this happen. Ive read about unlocking a pay and saving but this just crashes the file. hours upon hours wasting time doing it manually.  
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Kevin Russell, Accredited Partner

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Leanne the payroll tax for the employee is set on the card. Its not based on items. Thank you
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Leanne Dew

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That is correct Kevin, assign each employee to the relevant state payroll tax, simple. Run a state payroll tax report, not so simple when your Qld employee payroll items: wages, bonuses, super etc turn up, for no reason, partly in NSW and partly in amongst the Qld report. And vice versa. This is just not good enough. There is obviously a glitch of some type, not too mention the extra thousands of dollars out of pocket if not picked up.
On saying this, the report doesn't even calculate totals for working in multiple states, it clearly only works out the percentage in each state which is far different from the harmonisation rule of % of multiple states worked in. Do you think Reckon will get this right eventually? Or is that something beyond this accounting software? Love to hear your view, cheers Leanne.
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Kevin Russell, Accredited Partner

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Leanne payroll tax is based on where the wages are paid, not where the work is done. You are thinking of workman's compensation. I refer to the harmonisation rules as per the Revenue SA site "Where a business has an employee working in in more than one state or territory in one month payroll tax will be liable in the state or territory where the employee has their principal place of residence." 
(Edited)
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Leanne Dew

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Oh dear Kevin,, you havent understood one word I've been saying.

My Employee (Kevin) lives and works in state of QLD, has QLD state payroll tax on his 'card' everything Qld (not one mention to reckon about him every being associated with nsw)

Reckon report is showing Kevin's wages in NSW.

You can't defend that!
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Kevin Russell, Accredited Partner

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Oh dear! Leanne it would seem you have waited a little too long to address this issue. Your report is not working properly. Have you considered refreshing the pays for Queensland? That would be my approach. You dont even need to refresh them all. You could start with one month and check if the reporting changes. Good luck.