Table of Contents

Adding Employees - Payroll App

Learn how to add an employee in the Reckon Payroll mobile application.

Create employee

  1. Tap on Employees at the bottom of the screen.
  2. Tap Create first employee, or tap on the plus symbol in the top-right corner.
  3. Select Enter employee details.

Personal
  1. Enter the First name and Last name of the employee.
  2. (Optional) Change the Display name (this is the name displayed when processing a pay run).
  3. Enter their Email address
  4. Tap Select date to add the employee's date of birth.
  5. (Optional) Enter the employees Gender and Marital status.
  6. Tap on Contact tab at the top.
Contact
  1. If the employee is an overseas employee, select the International button. You can swap back by selecting the Australian button.
  2. Enter the employee's postal address. If the employee has a different physical address, untick the same as postal address box and enter the Physical address.
  3. Enter the employee's Contact number and optional other numbers.
  4. Tap the Employment tab at the top of the screen.
Employment
  1. (Optional) Enter the Job title
  2. Select an Employment type for the employee. Learn about employment types on the ATO website.
  3. Enter the standard hours work per week (for full time and part time only). If this varies, enter the average amount of hours worked per week.
  4. Tap Select date to enter the date the employee's start date.
To help you prepare for the introduction of Single Touch Payroll 2 we have added the option to select the STP Phase 2 employment type when adding an employee. This field is not compulsory, but if you decide not to enter STP Phase 2 employment type now you will need to come back and update the employee before you make the switch. Preparing Employees for Single Touch Payroll Phase 2 - mobile app has a step by step guide on how to update employees before switching to STP Phase 2.
  1. If you have configured Pay schedules, tap on Unscheduled to add the employee to a schedule. Otherwise leave as Unscheduled.
  2. Choose the pay frequency.
  3. Enter a unique Employee number.
  4. (Optional) Select a manager.
  5. Tap the Tax tab.
Tax

For this section, you will need to ask your employee for their Tax File Number (TFN). If they can't provide it or are unsure, contact the ATO and see if they have it on record. If they don't, there are special TFNs that cover certain cases.

  1. Select Yes or No to Employee has provided Tax File Number (TFN):
    1. If your employee has a TFN or you are using a special TFN from the ATO, select Yes.
    2. If your employee does not have a TFN and no special TFNs can be used, select No. This will default the TFN to 000000000.
  2. If you selected Yes to Employee has provided Tax File Number (TFN), enter the employee's TFN.
  3. If you entered Voluntary agreement for the Employment type in Employment details, enter the employee's ABN.
  4. Enter the State the employee works in, their Residency status and the applicable Tax scale.
If you are unsure of the employee's Tax scale, you should get in touch with your accountant or bookkeeper to confirm which tax scale the employee should use. Learn more about tax scales (tax tables).
  1. Enter in the employee's Income Type. Depending on what you selected for Residency and Tax scale, you may see some or all of these options:
    1. Salary and Wages
    2. Closely Held Employees (for employees who are directly related to the entity from which they receive payments)
    3. Working holiday maker
    4. Seasonal worker
    5. Voluntary agreement.
  2. (Optional) In Optional settings, select any relevant HELP/TSL/SFSS debt and tax offsets.
  3. Tap on the Emergency contacts tab at the top of the screen (you may need to swipe across the tabs to see this one).
To help you prepare for the introduction of Single Touch Payroll 2 we have added the option to select the STP Phase 2 income stream code, and for Working Holiday Makers a Home country when adding an employee. These fields are not compulsory, but if you decide not to enter STP Phase 2 income stream code or Home country now you will need to come back and update the employee before you make the switch. Preparing Employees for Single Touch Payroll Phase 2 - mobile app has a step by step guide on how to update employees before switching to STP Phase 2.
Emergency contacts
  1. You have the option to enter a primary and secondary emergency contact for the employee.
  2. One all details have been completed select Done.

Enter leave entitlements

If the employee is full time or part time you will need to configure their annual and personal leave entitlements.

  1. On the new employee screen tap the arrow in the Leave entitlements section.

For all types of leave:

  1. Select Edit leave
  2. The Accrual Period determines how leave is gained or accrued (that is, how it's calculated from the Accrual rate):
    1. Per time worked accrues leave for every hour worked, where the pay item has been ticked as Include in time worked leave accruals (this is ticked by default for Annual leave, Compassionate leave, Long service leave and RDO). The accrual rate will be multiplied by the hours worked (accrual rate x hours worked = leave accrued). For example, if the accrual rate is 0.076923 and the employee works 38 hours, they will accrue 2.923074 hours of leave (0.076923 x 38).
    2. Per pay accrues leave by the pay period. The accrual rate is the amount of leave that will be accrued in a pay period, and will calculate based on the Pay frequency.
    3. Per annum gives the employee an annual entitlement on their Leave start date, shown as an Accrual rate per annum. This figure is finite, and once used, cannot be accrued until the Leave start date rolls over again. For example, if the Accrual rate per annum is 152 hours and the employee's Leave start date is 15/09/1996, their Accrual rate per annum will reset to 152 hours each year on 15th September, regardless of how much leave the employee has remaining.
  3. Annual entitlement is the maximum amount of leave an employee can reasonably accrue. The default annual leave entitlement for full-time employees is 152.00 hours.
  4. (Optional)To change the Leave start date, tap on the cross next to the date and then tap Select date. The leave start date determines when the employee began accruing their leave and would typically be the date when an employee was first employeed or when they changed from casual to permanent.
  5. (Optional) Leave Loading % determines how much more pay the employee will be given whilst on this type of leave. For Annual Leave, the default is 17.50%, which means the employee will receive 17.50% extra pay when taking annual leave.
  6. Select Pay on termination if you want all remaining hours of leave to be paid out when the employee is terminated.
  7. Once completed select Done.

Initial YTD (Optional)

If you have started using the payroll app part way through the financial year, the screen allows you to enter the total amounts paid already for Earnings, Tax Withheld (PAYG), Superannuation, Allowances and Deductions.

  1. Tap Enter initial YTDs.
  2. To add an amount, tap Add item.
  • Earnings & leave: Enter the amount paid (YTD), the effective date and choose the applicable Earning name: Ordinary, Double time, Paid Parental leave, Bonus or Time and a half.
  • Allowances (YTD): Enter the amount paid (YTD), the effective date and choose the applicable Allowance name: Other, Laundry, Car (non taxed), Meal, Transport, Travel or Car (taxed).
  • Tax withheld (PAYG): Enter the amount paid (YTD) and the effective date.
  • Deductions (YTD): Enter the amount paid (YTD), the effective date and choose the applicable Deduction name: Social Club, Membership fees, Charity donations, FBT Contribution or Vehicle lease payment.
  • Superannuation (YTD): Enter the amount paid (YTD), the effective date and choose the applicable Super name: Super guarantee or Salary Sacrifice for Super.
  1. Select Done.

Once you're finished, tap Create text in the top right hand corner The employee has now been added. Tap Continue to return to the Employee list. For additional employees, choose the + in the top right hand corner.

Enter other details (Optional)

This section holds opening leave balances, bank details, and any superannuation details for the employee.

Opening balance is a Premium plan feature.
Opening leave balances
  1. Select Enter other details
  2. Select Enter opening leave balances.
  3. For each type of leave, enter the Opening balance for the leave and the Balance as at date. When completed, tap Done.
Bank details

Employees can be paid in single or multiple allocations. The system defaults to Single allocation.

Single allocation

By default, employees will be paid by Cash. If you wish to pay your employees via ABA files, you will need to change this to Electronic funds transfer (EFT):

  1. Tap on the current payment method (by default, this is Cash).
  2. Change the Payment Type from Cash to Electronic funds transfer (EFT).
  3. Set the Financial Institution your employee banks with from the drop-down list.
  4. Enter in the employee's BSB, Account Number, and Account Name they wish to be paid to.
  5. (Optional) Enter in a Reference for their pay. By default, this will be 'Pay'.
  6. Select Done.

Multiple allocations

To split the employee's pay:

  1. Select Multiple allocations
  2. Tap Add allocation for your chosen allocation:
    1. Fixed dollar allocation if the pay is to be split by amount or
    2. Percentage allocation if the pay is to be split by percentage.
  3. Enter a Pay amount
  4. If you wish to pay your employees in cash for an allocation, change the default payment type from Electronic funds transfer (EFT) to Cash.
  5. If you continue with a payment type of Electronic funds transfer (EFT):
    1. From the drop-down list, select the Financial Institution your employee banks with.
    2. Enter in the employee's BSB, Account Number, and Account Name.
  6. (Optional) Enter a Reference for their allocation.
  7. The Balance owing allocation defaults to Cash. If you wish to change this to Electronic funds transfer (EFT), tap on Cash and enter the details.

ABA payments are made in Reckon One.

Superannuation details
  1. Tap Enter superannuation details, then Add super details.
  2. Enter in the employee's superannuation Member number. This will be unique for the employee.
  3. Tap Enter date to set a Join date for the superannuation fund. If you're unsure of what this is, confirm with your employee.
  4. Toggle each Superannuation item the employee is valid for. If there are other superannuation items required, you will need to create them as pay items in Settings.
By default, every employee should have Super guarantee toggled on.
  1. Select Done.
Configure pay setup

Need more help?

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

Or Log a Support Ticket: https://www.reckon.com/au/support/

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Creating a Pay Run - Payroll App

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Settings - Payroll App
Preparing Employees for Single Touch Payroll Phase 2 - mobile app
Reckon Payroll: Pay unused leave on employee termination using Schedule 7 – Tax table for unused leave payments on termination of employment
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