ETP Payment Summary implications of upgrading from QB 12/13 to RA Business 2013

Legacy KB ID: 4869

Question

As QuickBooks 2012/13 was not fully compliant with ETP Payment Summary requirements, what do I need to do in Reckon Accounts Business 2013 to ensure that the ETP payments made to terminated employees during the course of the 2012/13 financial year appear correctly?

 

Answer

One of the new requirements for ETP Payment Summaries is to label the payment as relating to either Redundancy (R) or Other (O).

Reckon Accounts Business 2013 introduces a second series of ETP Tax Tracking Types to handle this requirement.  You now have 2 options for the one type of payment.  For example:

·         Post June 1983 Untaxed Element (R); and

·         Post June 1983 Untaxed Element (O).

The previous ETP payroll items (like Post June 1983 Untaxed Element) will be changed to the (R) Tax Tracking Type on upgrade to Reckon Accounts Business 2013.

Where terminations are due to redundancy then you do not need to do anything.  The ETP Payment Summary is properly coded. 

 

If the termination is for another reason then you will need to modify the termination payment:

1.    Create a new ETP payroll item for the Other (O) category;

2.    In the termination payment, replace the existing ETP payroll item with the new ETP payroll item created;

3.    Amounts of the payments, net pay and tax amounts should not change. 

 

Additional Note

Check that the Release Date in the Employment Info tab in the Employee Record is the same as the Termination Date to ensure that the correct ending date is published on the ETP Payment Summary. 

For further information relating to Termination payments, see KB4696:   https://kb.reckon.com.au/issue_view.asp?ID=4696

 

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