The PAYG calculated in Accounts hosted is different to what the ATO website states 2019-20

Melissa McPherson
Melissa McPherson Member Posts: 12
edited October 2019 in Accounts Hosted
I just processed first pay for the new year 2019-20. The gross pay is exactly the same as 2018-19 but the PAYG tax has increased. The ATO states that the tax table didn't change. Why has the tax increased in Reckon Accounts hosted

Comments

  • glendaveale
    glendaveale Member Posts: 176 ✭✭
    edited July 2019
    There have been changes to the HELP etc tax deductions
  • Melissa McPherson
    Melissa McPherson Member Posts: 12
    edited September 2019
    Our employee doesn't have HELP, just PAYG Tax only. His tax has increased by $8 per week & i am not sure why when the PAYG hasn't changed. 

  • Robyn Kelly (Partner)
    Robyn Kelly (Partner) Accredited Partner Posts: 473 Accredited Partner Accredited Partner
    edited July 2019
    What version of the program did you upgrade from?
  • Melissa McPherson
    Melissa McPherson Member Posts: 12
    edited July 2019
    upgraded from Reckon accounts hosted 2018

  • Robyn Kelly (Partner)
    Robyn Kelly (Partner) Accredited Partner Posts: 473 Accredited Partner Accredited Partner
    edited July 2019
    Do you know if you had the tax table update (R2 or Release2) on the 2018 version?  If not then you may not have been deducting the correct tax last year.  The Reckon 2018 version would have had the 17/18 tax rates applied.  The R2 patch is what would have made the 18/19 tables apply.  So if you didn't have R2 installed you would have been taking tax out at the 17/18 rate.
    ATO site for tax rates:
    https://www.ato.gov.au/Rates/?marketsegment=Business&sorttype=SortByTopic
    Then when you have upgraded to 2019 version it now has the 18/19 tax rates.  You will need the R2 to change the HECS if needed.
    Regards, Robyn
  • Melissa McPherson
    Melissa McPherson Member Posts: 12
    edited July 2019
    The gross pay is $885 which on the ATO weekly tax table is $143. This was the tax taken out prior to the upgrade and now it’s taking $151, which is incorrect. So it seems the 2019 version has the wrong tax table?
  • Neil_6428218
    Neil_6428218 Reckon Staff Posts: 88 Reckon Staff
    edited July 2019
    Hi Melissa, I think the Super item on that pay has somehow been ticked to be included in PAYG calculations. Have a look at the pay to see which Super item is being used, edit that item and on the Taxes window, see if PAYG is ticked, if it is, untick it and then start the payrun again and the correct PAYG should be calculated.
  • Melissa McPherson
    Melissa McPherson Member Posts: 12
    edited July 2019
    I just checked the super item & PAYG is NOT ticked. I also didn't change anything since the last pay of the year, so it shouldn't have just ticked itself. It seems there is definitely something wrong with the tax calculation in Reckon Accounts hosted 2019. 
  • Neil_6428218
    Neil_6428218 Reckon Staff Posts: 88 Reckon Staff
    edited July 2019
    Hi Melissa,

    I've been playing around with some settings this morning.

    $151 PAYG is calculated if the Employee has HELP or SFSS ticked (under Payroll & Compensation Info > Taxes)

    If both of those options are un-ticked, PAYG is caluclated at $143.

    Can you check whether either of those options are ticked for the employee?



  • Melissa McPherson
    Melissa McPherson Member Posts: 12
    edited July 2019
    Hi Neil - yes this is it! Thank you, just noticed he does have HELP ticked. So sorry i didn't realise that he had the HELP debt! 
  • Tania_10126273
    Tania_10126273 Member Posts: 22
    edited October 2019
    Similar problem but PAYG changed suddenly 5 weeks ago for only 1 of the emploees. Setup for employee was fine till then, he works a 40hr week, $200 salary sac to super, every week his net pay is the same (for the last 5 years). Then suddenly 5 weeks ago his PAYG went up and his pay dropped by $70. I can't find a solution and have to manually change it every week. I've checked tax tables, original calculation was spot on so I can't understand what has changed???
    GROSS $1300
    SS $200
    PAYG $217 but Reckon calculating at $287 
  • Neil_6428218
    Neil_6428218 Reckon Staff Posts: 88 Reckon Staff
    edited October 2019
    Hi Tania,

    Try this:

    Edit the Employee to see which Super item they are using and then go to Lists > Payroll Items List > Edit the Super item and on the fifth window in the Edit Payroll Item wizard, make sure PAYG is unticked.

    Create a pay again and see if it calculates the correct tax.




  • Tania_10126273
    Tania_10126273 Member Posts: 22
    edited October 2019
    Already checked everything and it all looks good. More to the point nothing has been changed since setup on July 1 and it has been working fine till 5 weeks ago. And everyone else is calculating just fine. 
  • Neil_6428218
    Neil_6428218 Reckon Staff Posts: 88 Reckon Staff
    edited October 2019
    Hi Tania, 

    If you edit the Salary Sacrifice item that this Employee uses, you may find that the PAYG option isn't selected.

    In my dummy file, when i recreate your pay details, if I have PAYG unticked in the Salary Sacrifice item, PAYG is calculating at $287. If I edit the item and tick PAYG  then PAYG calculates as $217 when I process a pay.
  • Tania_10126273
    Tania_10126273 Member Posts: 22
    edited October 2019
    Ok...well that worked???
    2 things I don't understand, why did it change suddenly and why would you tick PAYG on the salary sacrifice when it doesn't attract PAYG???
    But I am starting to realise the quirks in this system are beyond understanding. I am MYOB trained and experienced and I'm starting to think I should of talked the boys here into a change to MYOB. 
    Thanks for the help it was doing my head in trying to figure it out.