PAYG Tax calculation and ABA net amount are incorrect

Legacy KB ID: 4455

Question

Why are PAYG tax calculation and ABA net amounts sometimes incorrect?

Answer

This problem has been noted when Salary Sacrifice payroll items use a percentage rather than a dollar amount.  It is on the second and subsequent pay runs that the error occurs.  The problem is a refresh issue. 

 

Description of the problem

The PAYG tax does not reduce for the Salary Sacrifice amount, and the Salary Sacrifice Amount is not reduced from Net Pay. 

If the pay is opened after it has been processed, the Net Pay has reduced for the Salary Sacrifice amount, but PAYG tax remains unchanged at the original amount (based on gross). 

If the employee is being paid by Online Banking, the ABA file will have the incorrect Net Pay amount – where the Salary Sacrifice Amount is not deducted. 

 

Workaround

For employees with a percentage for their Super Salary Sacrifice, refresh the Review or Change Payments screen before continuing with the pay run.  To  refresh, tick the box    and then untick it.

 

If this problem affects more than one employee, setup a separate payroll schedule for these employees.  To setup a payroll schedule:

1.    Employee Centre > Payroll tab > Related Payroll Activities > Add or Edit Payroll Schedule > payroll Schedule > New;

2.    Name the schedule – eg %SalarySacrifice – and complete details on screen;

3.    Click OK when finished and close the window;

4.    In the Employee Centre, open an employee record > Change tab to Payroll and Compensation Info;

5.    In the Payroll Schedule box, enter the name of the schedule created in 2 above and click OK.  Repeat this step for every relevant employee.

When running this schedule, select the first employee and click Open Paycheque Details:

a.    Tick then untick the box Do not accrue time;

b.    Click Next to move to the next employee in the schedule;

c.    Click continue when all employee’s pay details have been refreshed. 

Need more help?

Ask the Reckon Community at: https://community.reckon.com/

 

How did we do?

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