Temination payment

Emma_10100757
Emma_10100757 Member Posts: 13
Hi Everyone, may I seek some helps on this please?  We made an employee redundant in July.  These days she found out that I have withheld the wrong tax amount on her unused annual leave plus leave loading - which should be a flat rate 32% under "genuine redundancy", however, I mistakenly calculated by using the marginal rate thus I ended up withholding $80 more than it should be. Now she requests to get this amount pay back.  My question is: how & what to do to fix the records in Reckon (we are using Reckon Accounts Premier 2019 version) as well as reporting to ATO?

Comments

  • Kris_Williams
    Kris_Williams Member Posts: 3,272 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert
    edited May 2020
     Can’t you adjust the pay and then submit a replacement file to ATO. And pay her the extra 80
  • Emma_10100757
    Emma_10100757 Member Posts: 13
    edited September 2019
    Hi Kris, the payroll was processed in July and PAYG also has been submitted to ATO for that month.  I don't think adjusting pay will do any help because the amount she's paid on unused AL and leave loading is correct itself, only affecting the tax withheld.  I suspect something to do with Employee/Payroll taxes and liabilities adjustment. Thank you!
  • Acctd4
    Acctd4 Accredited Partner Posts: 3,366 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert
    edited September 2019

    Hi Emma

     

    If more tax has been withheld than necessary, this will be reflected in their PAYG total at EOFY & the employee will have it refunded when they do their 2020 tax return.

    However, bear in mind that for a genuine redundancy, the job itself must be redundant/no longer applicable. 
    If the employee was just let go/terminated, this is not considered a "redundancy" & no tax-free limit applies.
    For a genuine redundancy only, any amount above the tax-free limit should be processed as an ETP (Employment Termination Payment)

     

    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!)
  • Kris_Williams
    Kris_Williams Member Posts: 3,272 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert
    edited September 2019
    Further to your comment, adjusting the pay would only be a tax change and that way you could refund the 80 to employee. Then resubmit to ATO
  • Emma_10100757
    Emma_10100757 Member Posts: 13
    edited September 2019
    Thank you Shaz!  It would be simple if she could just wait till tax return...
    Thanks Kris! Now I got you - just amend the PAYG amount from the pay.