Table of Contents

NSW State Payroll Tax Rate update for 2022

Overview

On the 1st of August 2022, Revenue NSW announced they are ending the temporary payroll tax rate reduction put in place to assist businesses during the 2021 and 2022 financial years due to the COVID-19 pandemic.

  • From 1 July 2022, the payroll tax rate for New South Wales reverts back to 5.45%.
  • The payroll tax threshold of $1.2 million from 1 July 2020 remains the same.

REFERENCE
Revenue NSW - Rates and thresholds
The thresholds and percentages vary between states and are often adjusted each year. Please refer to your State’s Office of State Revenue website for notices of changes.

What does it mean for you?

Impacted products and versions

Since the new payroll tax rate was announced after the 2022/23 Tax Table Update, the State Payroll Tax Report within the Reckon Accounts Business Range will still have the previous Percentage (Rate) and would be calculating the incorrect Payroll Tax Liability for NSW.

Affected versions:

  • Reckon Accounts Plus 2022 R2
  • Reckon Accounts Premier 2022 R2
  • Reckon Accounts Enterprise 2022 R2
  • Reckon Accounts Hosted 2022 R2

Steps to add the correct rates

Desktop users

Apply the update to your Reckon Accounts installation to accurately calculate the payroll tax liability on taxable wages paid after 01 July 2022.

  1. Close Reckon Accounts
  2. Download the updated auStateTax.xml
    1. Right-click on the link name
    2. Select the Save link as...
    3. Choose a download folder location
    4. Then, copy the downloaded XML file
  3. Navigate to the installation folder
    Default path: C:\Program Files (x86)\Intuit\Reckon Accounts 20xx
  4. Find and rename the existing file from auStateTax.xml to auStateTax.xml.OLD
  5. Paste the downloaded XML file into the same directory
  6. Reopen Reckon Accounts and produce the State Payroll Tax Report

Multi-user installations (other than Terminal Services users) must carry out these steps on every computer that has Reckon Accounts installed.

Hosted users

We will be releasing the update on the next scheduled release. Meanwhile, you will have to export the report and manually edit it for the correct tax.

  1. Go to Reports menu > Employees & Payroll > State Payroll Tax Detail/Summary
  2. Click on Export and select a new Excel workbook
  3. Click on Export then enter a File name and Save it on the My Live (Q Drive)
  4. Click on the Floating Toolbar and select Download File
  5. Save the Excel file on your computer
  6. Open it locally to update the Percentage (Rate) to 5.45%
  7. The newly calculated Payroll Tax Liability would be the correct amount for the NSW state.


Need more help?

Ask the Reckon Community at: https://community.reckon.com/categories/reckonapi

How did we do?

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