The PAYG calculated in Accounts hosted is different to what the ATO website states -a new user of pa

David Bennett
David Bennett Member Posts: 5
edited July 2020 in Reckon Accounts (Desktop)
The PAYG calculated in Accounts hosted is different to what the ATO website states. I have just started using the payroll feature, this is an issue.

Comments

  • Mirko
    Mirko Alumni Posts: 1,258 ✭✭
    edited November 2015
    Hey David, Are you running R1 or R2 on Hosted? Is the PAYG showing different to ATO guidelines for all employees or only some?
  • Charley
    Charley Member Posts: 541 ✭✭✭
    edited July 2020

    Mirko, it shouldn't matter if you're running R1 or R2, the PAYG formulas have not really changed except for the high wage earners.

    If it's only $1.00 difference then it just a rounding issue between Reckon and the ATO site. If it's a major difference then the issue could be the wrong tax code selected like No-TFT instead of TFT will give a much higher PAYG amount.

    Firstly I would be checking  your employee setup as to what payroll items are attracting or not attracting PAYG ie if Time and half payroll item is not ticked for PAYG then when you put that item in it won't calculate the PAYG

  • John Graetz
    John Graetz Member Posts: 1,651 ✭✭✭
    edited December 2016
    I agree with you Charles.  I quite regularly use the ATO Tax Withheld Calculator app and it is rare to even find that $1 variation.  Apart from the things that you have highlighted, the other things are the HECS setting if applicable.  Then I would be closely looking to make sure that the ATO online settings are totally correct e.g. that the correct period (weekly, fortnightly etc) has been selected and that each of the other online settings agrees with the way in which Payroll has been setup.  John G
  • David Bennett
    David Bennett Member Posts: 5
    edited July 2015
    My employee is part time permanent works 15 hours a week, gets paid fortnightly, is claiming the tax free threshold,  recorded in Reckon as 2FT, gross wages is $930.  Reckon calculates PAYG as $80,  Tax Office calculator gives me $56. I started using the Payroll system in Reckon from July 1, this year but now have to manually adjust the PAYG,   This issue has impacted 2 other employees as well.
  • David Bennett
    David Bennett Member Posts: 5
    edited July 2015
    See my more detailed comment below.  I am using R2.
  • Charley
    Charley Member Posts: 541 ✭✭✭
    edited December 2016

    David I have set up timesheets in Excel that I have incorporated the PAYG formulas into and they work, the 930.00 is obviously a fortnightly wage and the PAYG I get is the same as the ATO (as it should be) 56.00. However the PAYG code used is TFT which is the same as Reckon, if you have a 2FT PAYG code then it is probably a made up one with a higher rate set in or an $ amount added. You should have there a TFT code which will agree with what the ATO says. You will need to amend your employee setup to show that.

  • John Graetz
    John Graetz Member Posts: 1,651 ✭✭✭
    edited December 2016
    David.  I have run my own test using a pay of $930 and come up with the correct tax of $56.  Here is my suggestion to you.  Have a look at the set-up for the SGC super payroll item for the fund that this, and the other affected employees use.  Check to make sure that Tax Tracking Type (click "next" three times and you should arrive at the correct place) is set to "none".  I suspect that it might be set to "Gross Payments" in error.  When I add the SGC to your pay of $930 I end up with a result of $78 tax which is pretty close to the answer that you are getting - allowing for rounding which you may not have told us about, this could end up being $80.  As an experiment, you could run a "Pay Employees / Unscheduled Payroll", delete the SGC from that pay and see what happens to the tax.  In fact, if you have any other items included in the pay, selectively delete them one by one, and see what the effect is.  To me it seems that you have at least one item within the pay run, other that the wages, which has got the tax flag set to calculate, when it shouldn't be set.to calculate at all.  I have seen an example where the SGC had the tax tracking set to "Gross Payments", hence the reason for drawing it to your attention.   I used a 2-TFT in my test pay run. John G
  • David Bennett
    David Bennett Member Posts: 5
    edited July 2015
    I am sorted, it was the way I had set up the super payroll item, I did as you suggested and made a number of unscheduled until I got the correct results, thanks
  • John Graetz
    John Graetz Member Posts: 1,651 ✭✭✭
    edited December 2016
    Excellent David.  Great to know that this was the solution that worked for you.  John G
  • Farhan
    Farhan Member Posts: 2
    edited October 2016

    Hi, As required We have updated the payroll but find that the employee tax amount coming bit extra as compare the ATO Provided tax table. When analyse the difference it coming probably we deducting PAYG on the employer Super contribution. Could you Pl tell me how I can check the field and untick the specific check box? Thanks