State Payroll tax rate changes for SA, 2017/18

Legacy KB ID: 5564

Question

State Payroll Tax for SA has changed to 2.5% for small businesses. My Reckon Accounts Business 2017 is calculating it in incorrect rate, how do I fix it?

Answer

SA government has just published the new state payroll tax for Small Business Effective date on July 1st 2017.

For Annual Taxable payroll ranges, exceeds $600,000 but not $1 Million the tax rate is now to 2.5%  from 4.95%

For More details please refer to SA website or contact your accountants.

RAB 2017 R2 will not be able to incorporate this changes as it was already released when SA made this change. We apologise for the inconvenience.

Please follow the below workaround to calculate it manually.

Workaround:

If you are using RAB desktop Please follow this:

1) Download this updated tax table file auStateTax.xml and replace it with the current one in the installation folder. 

The Default directory will be like below. Please unzip the downloaded file and replace to the one in below location.

File location 

Windows 7, 8, 10 x64bit : 

C:\Program Files (x86)\Intuit\Reckon Accounts 2017

Windows 7, 8, 10 X 32 bit:

C:\Program Files\Intuit\Reckon Accounts 2017

Note this only applies to the desktop edition of Reckon Accounts Business. If you have multi-user licence and installed on other PCs, you will have to replace this file on all of those PCs.


If you are hosted user please follow below:

If you are small business processing payroll in SA and your taxable payroll ranges from $600,000 to $1 Million, please follow the below instructions to calculate the tax manually at 2.5%.

  1. Go to Report menu -> Employees and Payroll -> and State Payroll Tax Summary report.
  2. Export the report to Excel.
  3. Save the Excel report in your PC, where you can open and edit it. (If you are using RA hosted, save the report to Q: drive and download it to your local PC)
  4. Open the report in Excel.
  5. Go to the Percentage Row and change the percentage to 2.5% as of FY2017/18 .
  6. Go toPayroll tax Liability for SA(Subject to user Review) Box and enter the formula as (Taxable amount * 2.5 %or Taxable amount X 0.025)

This will be the correct tax amount you are liable to pay for SA.

Note: if you have employees from other states too, in this report, please update thePayroll tax liability for all statestoo.

Need more help?

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

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