Employee wants to make additional regular HELP Debt repayments

Legacy KB ID: 4414

Question

An Employee subject to HELP would like to pay more than the statutory requirement from his normal pay.  How can this be done in QuickBooks Payroll?

Answer

Details for making additional HELP repayments are available on the ATO website at https://www.ato.gov.au/individuals/content.aspx?menuid=0&doc=/content/00291063.htm&page=35&H35

 

The most convenient method for QuickBooks processing is the Direct Deposit method.

 

When paying the employee by direct bank credit

Net Pay can be split between two accounts:

·         The first optional account is configured for the additional HELP repayment. 

o    Use the details from the ATO website for the bank account

o    Note that the deposit must quote the employee’s PRN.  QuickBooks has only one field for a Lodgement Reference, and this number will appear on both accounts.

·         The second remainder account is configured for the employee’s personal account.

 

When paying the employee by cheque or cash

1.    Create a Deduction item call Additional HELP – Name (you will need a separate deduction item for each employee)

a.    For Enter the name or agency to which liability is paid, enter the employee’s name with HELP – eg John Citizen Help

b.    Enter the employee’s PRN in the Enter the number that identifies you to agency;

c.    Create a separate Payroll Liability sub-account for this deduction;

d.    Tax Tracking Type is None;

e.    No Taxes are ticked;

f.     Enter the amount of the additional repayment in the Default rate and limit screen.

2.    Add this deduction to the employee’s Payroll and Compensation Info;

3.    Edit John Citizen Help in the Supplier Centre and add the ATO’s bank details for the payment of Help.  Remember you must enter the employee’s PRN as the Lodgement reference.   

4.    At agreed times forward deductions to the ATO through Employees > Payroll Taxes and Liabilities > Create Custom Liability Payments. 

 

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