Table of Contents

Multiple tax tables: Support for two financial year PAYG Tax Scales

The ability to support two financial year PAYG Tax Scales will be available in Reckon Accounts and Reckon Accounts Hosted (Australian edition) from 2023.

About

From the 2023 version onwards, Reckon Accounts will support two financial year PAYG Tax Scales in the Payroll feature. PAYG Tax will be calculated for an employee using the previous and current tax scales based on the Payment Date.

New pay run

  • If an employee is paid on or before 30 June, Reckon Accounts will calculate the PAYG Tax using the previous Financial Year tax scales.
  • If an employee is paid after 30 June, Reckon Accounts will calculate the PAYG Tax using the current Financial Year tax scales.


Recalculation

  • For a new pay run, re-opening the Review or Change Payments after changing the Payment Date.
  • For paycheques, when the Date is updated and Unlock Net Pay is selected.


Example

The new Tax Tables are generally released by ATO from mid-May onwards. At the time of writing, we have not received the latest tax scales.

For this example, we are using the Tax Tables from the 2021/22 Financial Year as the previous tax scales and 2022/23 Financial Year as the current tax scales.

New pay run

Processing a new pay on or before 30 June 2022
  1. In the Employee Centre, go to Payroll tab > Pay Employees
  2. In the Enter Hours window, enter the following dates:
    1. Pay Period Ends: 03/07/2022
    2. Payment Date: 30/06/2022

  1. Select the Employee name to open the Review Or Change Payments window and enter the hours
  2. The Employee Summary would calculate the following for the period:
    1. Gross Pay: $2.652.00
    2. PAYG Tax: $1,013.00 – this is the Tax amount calculated for the Gross amount based on the 2021/22 Financial year for this type of employee.
    3. Net Pay: $1,639.00


  1. Click Save and Close


Updating the new pay to a Payment Date after 30 June 2022
  1. Back to Enter Hours window, update the Payment Date from 30/06/2022 to 01/07/2022


  1. Select the Employee name again to open the Review Or Change Payments window
  2. The Employee Summary would re-calculate the PAYG Tax to $1,000.00 – this is the Tax amount calculated for the Gross amount based on the 2022/23 Financial year for this type of employee.
  3. This will also update the Net Pay amount to $1,652.00


Recalculate PAYG Tax
  1. Manually overwrite the PAYG Tax from $1,000.00 to $800.00
  2. Click Save & Close
  3. Re-opening the Review Or Change Payments window will not recalculate the PAYG Tax


  1. Back in Enter Hours, change the Payment Date to a day forward – 02/07/2022
  2. This will recalculate the PAYG Tax back to $1,000.00 (2022/23 Financial year tax rate)
  3. Update the Payment Date again to the correct period


Reverting the Date Paid on or before 30 June 2022 for a Paycheque

  1. The pay from the above example was processed
  2. Go to the Employee Centre, select the Employee, then open the Paycheque to open the transaction
  3. Change the Date from 01/07/2022 to 30/06/2022
  4. Click Paycheque Detail
  5. The PAYG Tax remains to be $1,000.00 (2022/23 Financial year tax rate)


  1. Click Unlock Net Pay
  2. The PAYG Tax will recalculate to be $1,013.00 (2021/22 Financial year tax rate)


Dialogues and Messaging

Important Information

The Important Information dialogue opens when the Employee Centre window is opened. This is updated to provide links to Help documentation regarding recent changes to Reckon Accounts 2023.

Selecting Other New Features or Fixes will redirect to What's New – Reckon Accounts 2023 R1 to navigate to new features or updates within the application, especially to the topic of Multiple tax table support feature.


Tax Table Version

  • Go to Employees menu > Tax Table Info
  • Then click on Tax Table Info button
  • This will open the Tax Table Information help file
ADDITIONAL INFO
— Any pays processed in the 2022/23 financial year will be processed with the 2022/23 PAYG Scales.
— All pays process in the 2023/24 financial year will use the new PAYG Scales.


About this tax table

In the Tax Table Information help file, select About this tax table.

NEW INFO
This product includes Tax Scales applicable for the 2023/24 financial year. All payments made to employees between 01 July 2023 and 30 June 2024 need to be taxed according to this Tax Table.

Any pays processed in the 2022/23 financial year will be taxed using the 2022/23 PAYG Scales.


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