PAYE calculates incorrectly for employees with the ND tax code in Accounts Business 2014

Legacy KB ID: 5081

Question

Why is the tax amount incorrect for employees with the ND tax code since upgrading to Accounts Business 2014?

Answer

Manually adjust the tax amount for the correct amount.  For regular amount salaries add an extra Tax amount for the difference in the Employee Record.

 

The Issue

A change in the manner of calculation of tax amounts for the financial year 20114/15 did not flow through to the ND tax code.

Reckon apologises for the oversight and the inconvenience this causes. 

From April 2014 tax is to be calculated on the whole dollar amount rounded down.  So tax on $456.78 will calculate on $456.00 and not on $456.78.

The ND tax code will calculate tax on the full amount - $456.78.  the maximum difference we expect on any pay is $0.45.

 

Workaround 1: 

Obtain the correct amount of tax from the IRD tax tables and over-write the tax amount with the correct amount.

 

Workaround 2: For employees whose pay does not change from pay to pay.

1.     Calculate the amount of the difference

2.     Add the amount to the Extra Tax box in the Tax tab of the Employee Record. 




Need more help?

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

 

How did we do?

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