Super & Deduction Items appear in Ded-Net rather than Ded-Gross after upgrade to QB2012/13 and later

Legacy KB ID: 5033

Question

Why does my super payroll item now appear under Ded-Net rather than Ded-Gross column on the Payroll Totals Report after upgrading?

 

Answer

In QuickBooks 2012/13 there was a subtle change in the default settings for Super and Deduction items.

Previously, when Taxes were unticked in the Super and Deduction item setup, you were given an option to select either Gross or Net in the Gross vs net window, which determined the column it would appear in the Payroll Totals Report.

In 2012/13, the column the Super or Deduction item will appear is determined by the Taxes choice only:

·         if PAYG Tax is ticked the item will appear in Ded-Gross;

·         if PAYG Tax is unticked the item will appear in Ded-Net;

regardless of your selection in the Gross vs net window. 


The outcome in 2012/13 is in keeping with the way these items are generally treated for tax reporting purposes.  Super and Deduction items that have PAYG Taxes ticked result in those items being received before tax is calculated and may have to be reported in RESC or FBT fields.  Normally, deductions from pay (unless allowed by law) are made after PAYG tax is charged and is therefore from net pay. 


If you had a Super item (like Member Voluntary, Spouse, Co-contribution) or Deduction item (like Health Society premium) unticked for PAYG Tax, and Gross selected for Gross vs. net in a pre-2012/13 QuickBooks version, then on upgrade those items will now appear in the Ded-Net column rather than the Ded-Gross column.

QuickBooks 2012/13 and Accounts Business versions are showing the items in keeping with the way they are reported for tax purposes.

 

Note on Super Salary Sacrifice and Salary Packaging arrangements.

These items must have PAYG Taxes ticked to reduce the Gross Payment amount for calculation of tax.  These items will then feature in the RESC and FBT fields respectively.   

 

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