tax rates are incorrect

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  • Updated 3 days ago
PAYG tax rates are much higher than the ATO tax tables. Eg gross $1140, tax according to Reckon should be $269, according to tax tables $231, $38 more deducted. another one Gross $448, according to Reckon deduct $$33, according to ATO tax tables $20, $13 more. 
Employees are very unhappy about this, and I do not see why I should have to go through and manually override the tax deductions for every employee every week. I am using Hosted 2019, and all employees are on tax code 2-TFT.
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Judy Smart

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  • worried

Posted 1 year ago

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John Graetz

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Hi Judy.  Your ATO calculations are as per the ATO TWC calculator.  Your Reckon results indicate that you are charging your employees tax on their SGC payments.  Suggest you edit each of those SGC items to check it out.
John L G
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Kevin Russell, Accredited Partner

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Correct John. I just tested this myself. Hosted is spot on with the weekly withholding tables. It would be great if we could check things before blaming the software we all have enough to do without jumping at shadows
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Judy Smart

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Hi John and Kevin
Thanks for the help - but I can't see what I have to do to stop taxing SGC. Should I tick the exempt from reportable employer super contributions box? I have searched everywhere and can't find anything else. Appreciate your help. 
Judy

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Kevin Russell, Accredited Partner

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If you used the default super item this wouldn't happen. Go to payroll items list and edit the item Super item for PAYG. Click the default button
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John Graetz

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HI Judy.  Go and edit your SGC payroll item and when you get to the section Tax Tracking Type, make sure that you select None.   You are not the first person to find that None has not been selected or say Gross Payments has been selected in error.
John L G
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Debbie Mccoll

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Hello John,  I have just incurred the same problem as Judy did awhile ago.  My tax rates has been correct until the first week of May. I have checked that the tracking type is none, which it is. However, the system is still calculating the tax on the super amount as well. Any other idea how to fix it?
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Debbie Mccoll

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Hi, I have solved my problem thankyou
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Tanya Chiera

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Hi 
This is my second payrun on reckon one, and have noticed the same issue.  I am trying to see the above suggestions, however being very new I am not sure what I am looking for.
Please help as the tax seems way too high for my employees.

Regards
Tanya