Liability Cheque for PAYE tax assigned to Australian Taxation Office

Legacy KB ID: 4813

Question

Why is my liability cheque for PAYE tax being assigned to the Australian Taxation Office?

 

Answer

You will experience this issue if you imported a Payroll Item list from an Australian version of Reckon Accounts into a New Zealand version of Reckon.  The PAYE item has been overwritten with the PAYG item.

Many parts of the payroll module are interchangeable between Australian and New Zealand version.  Only the interface is different; the database is exactly the same and any transactions processed since importing the payroll item list are secure.

New Zealand uses the payroll item PAYE to collect Pay As You Earn income tax from employees and forward it to the Internal Revenue Department.

Australia uses the payroll item PAYG to collect Pay as you Go income tax from employees and forward it to the Australian Taxation Office. 

When you import a Payroll Items list that contains the PAYG Tax item, it will overwrite the PAYE tax item.  You will need to rename this payroll item.

 

Detailed Instructions

1.    Lists > Payroll Item List

a.    Right-click PAYG Tax;

b.    On Name used in payments….. change PAYG Tax to PAYE Tax > Next;

c.    On Agency for….. change

                                          i.    Australian Taxation Office to Inland Revenue Department

                                         ii.    Payroll Liabilities:PAYG withholding to Payroll Liabilities:PAYE (your PAYE liability account) > Next;

d.    Click Finish.

 

2.    Lists > Chart of Accounts;

a.    Right-click PAYG –withholding > set Dates to All > check that it is empty;

b.    Right-click Payroll Liabilities:PAYE (your liability account for PAYE withheld) > set Dates to All > confirm there are entries for pays;

c.    Highlight PAYG – withholding > Edit > Delete Account > OK.

 

3.    Supplier Centre;

a.    Right-click Australian Taxation Office > QuickReport > Modify > Filter > Account > All > set Dates to All > confirm there are no entries;

b.    Right-click Inland Revenue Department > QuickReport > Modify > Filter > Account > All > set Dates to All > confirm there are entries for pays and liability cheques;

c.    Right-click Australian Taxation Office > Edit > Delete Supplier

 

4.    Check that Liability payments show PAYE and Inland Revenue Department:

a.    Employees > Payroll Taxes and Liabilities > Create Custom Liability Payments > select the range for the next payment > OK

b.    Confirm that you see PAYE Tax and Inland Revenue Department. 

 

Your PAYE Tax payroll item and Inland Revenue Department have been restored.


Need more help?

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

Or Log a Support Ticket: https://www.reckon.com/au/support/

 

How did we do?

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Reckon Accounts Desktop: Super does not display figures for current pay on a payslip

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