State Payroll tax changes in NSW and VIC for 2018/19

Legacy KB ID: 5701

Question

Why is the State Payroll Tax for Victoria and / Or NSW calculating incorrectly? I have installed the latest tax table update.

Applies to:

Reckon Accounts Business 2018 R2 and Reckon Accounts Hosted 2018 R2.

Answer

Update 22/08/2018

The below issue has now been rectified for Reckon Accounts Business Desktop range product. i.e Reckon Account Business Plus, Reckon Account Business Premier and Reckon Account Business Enterprise 2018 R2.

Please refer to the KB5708 for fix.


If you are using Reckon Accounts Hosted, Please jump to additional Information section.

Download the updated auStateTax.xml (Right click on the file and select save as to download) file from here and replace it with the one you have in your Reckon Accounts installation folder.

Detailed steps.

State Payroll tax for NSW and VIC has changed for FY 2018/19.

NSW threshold has increased from $750,000 to $850,000. The tax rate remains the same at 5.45%. More information can be found here https://www.revenue.nsw.gov.au/taxes/payroll/rates .

VIC threshold has increased from $625,000 to $650,000. The tax rate remains the same at 4.85%. More information can be found here https://www.sro.vic.gov.au/node/1411

Please note RAB does not support regional Victorian tax scales.

1) Download the updated auStateTax.xml. Note the download location.

2) Open your windows explorer and go to the installation folder for Reckon Accounts Business located in your local disc C drive:

For 64 Bit windows: Go to C:\Program Files (x86)\Intuit\Reckon Accounts 2018

For 32 Bit Windows: Go to C:\Program Files\ Intuit\Reckon Accounts 2018

3) Copy the auStateTax.xml that you have downloaded and paste it here. When prompted that file already exists, select the option to copy and replace the file in the destination.

Reopen your Reckon Accounts Business 2018 and verify your state payroll tax is now reflecting correctly.


Additional information:

For Reckon Accounts Hosted users:

We will release the update soon for this issue. Meanwhile, you will have to export the report and manually edit it for the correct tax.

1. Go to Report menu -> Employees and Payroll -> and State payroll Tax summary report.

2. Export the report to Excel.

3. Save the Excel report in your PC, where you can open and edit it. (If you are using RA hosted, save the report to Q: drive and download it to your local PC)

4. Open the report in Excel.

Change the Threshold amount 

For VIC : to 650,000 from 625,000


For NSW: 850,000 from 750,000

5. Correct the amount for the Taxable amount. The correct amount is calculated as (Total Included amount minus threshold)

6. Go toPayroll tax Liability for VICBox and enter the formula

For VIC: 4.85% of taxable amount

For NSW: 5.45% of taxable amount.

This will be the correct tax amount you are liable to pay for Victoria and NSW state.

Note: if you have employees from other states too, in this report, please update the payroll tax liability for all states as well.

How did we do?

Related Articles

State Payroll Tax thresholds and rates incorrect in Payroll Premier 2011/12
New South Wales State Payroll Tax for 2013-14 calculating incorrectly
State Payroll Tax Detail Report displays employees in wrong states in QuickBooks 2011/12
Powered by HelpDocs (opens in a new tab)

Powered by HelpDocs (opens in a new tab)