PAYG Tax not calculated on Leaving Loading above the threshold

Legacy KB ID: 4347

Question

Why hasn’t QuickBooks 2011/12 calculated PAYG Tax for an employee’s leave loading after his leave loading has exceeded the tax-free threshold ($320.00)?

Answer

This is a refresh problem that may occur if you are using Holiday Hourly rate set in the Employee’s record and the preference ‘Recall hour field on pay cheques’ is ticked. 

When you enter the hours for Holiday Hourly on one pay, this amount of hours will be recalled on the next pay.  If there is no change to the number of holiday hours, and if there is no other change on the Review or Change Payments screen, all aspects of the payroll module, including the tax on Leave Loading, may not be updated. 

In relation to PAYG on Leave Loading, the amount already paid is not checked against the threshold level and PAYG tax rate is not reset. 

 

Workaround

Untick the recall option Payroll & Employees Preferences

1.    Edit > Preference > Payroll & Employees > Company Preferences

2.    Untick Recall hour field on pay cheques

3.    Untick Recall quantity field on pay cheques

4.    Click OK.

 

Refresh the pay.

1.    Select the paycheque from the Employee Centre

2.    Click on Paycheque Detail

3.    Click on Unlock Net Pay;

4.    Take note of PAYG Tax and Cheque Amount;

5.    Tick the box Do not accrue time;

a.    If it is ticked, untick it

6.    Untick the box Do not accrue time;

7.    Observe that PAYG Tax and Cheque Amount has changed;

8.    Click OK.

9.    Observe that the PAY Tax and cheque Amount adjust.

 

If the employee has been paid the incorrect amount.

1.    Calculate the amount of tax underpaid (follow the steps in Refresh the Pay, but do not save it)

2.    Increase PAYG Tax on the next pay by this amount.

 

If the Employee returns the overpayment.

See kb4195 https://kb.reckon.com.au/issue_view.asp?ID=4195 on how to handle an employee returning an overpayment.

How did we do?

Related Articles

Leave Loading is not showing in Taxable Pay field on Payslip
What's New - Reckon Accounts 2020 R2
What's New - Reckon Accounts 2022 R2
Powered by HelpDocs (opens in a new tab)

Powered by HelpDocs (opens in a new tab)