Table of Contents

Adding and editing an employee in Reckon Payroll Web

Learn how to add and edit an employee in the employee setup wizard in Reckon Payroll Web.

These instructions are for books that are processing payroll under STP Phase 2. If you are using an STP1 book, some of the steps will be slightly different. To check your book status, go to Settings > Single Touch Payroll.

Before adding an employee

Before adding an employee:

Adding an employee

  1. In the menu at the top of any screen, select Employees. Or select Add New, then Employee.

Editing an employee

  1. In the menu at the top of any screen, select Employees.
  2. Choose an employee from the list on the left hand side.
  3. Select the Edit details button to open the employee setup wizard, or select Edit next to the specific section you'd like to change. If you select Edit against a specific section, the following instructions apply, but the order and way in which the steps are displayed may slightly differ.

Employee details

Personal

  1. Enter the employee's First name and Last name.
  2. Enter a unique Display name for the employee. It can be the same as the First name or Last name, or another name used for the employee. It will display when processing a pay run.
  3. Enter the employee's Email address. You can only enter one email address.
  4. Enter the employee's Date of birth. Select the calendar icon to select a date from the calendar, or click in the field, manually type it in and then select the date from the calendar. Date of birth format is dd/mm/yyyy.
    If you type in the date manually, make sure any single-digit days/months start with a 0, and the year contains the first 2 digits (eg. 03/09/2020). You must click on the date in the calendar to select it after you've typed it in.
  5. (Optional) Select Add additional personal details if you wish to add the employee's gender and/or marital status.

Contact

  1. If the employee is an overseas employee, select the International button. You can swap back by selecting the Australian button.
  2. In the Postal address section, you must enter all fields except those marked as optional. Australian postcodes cannot be more than 4 digits.
  3. If the employee has a different physical address to their postal address, untick the Same as Postal button to enter the physical address.
  4. Enter a 10-digit Contact Number. This can be a mobile number or a home phone number.
    Do not use +61 or +64 when entering the employee's phone number. Doing so will cause an error with the ATO. All numbers should be 10 digits with no spaces and no special characters.
  5. (Optional) Select Add other contacts to add an extra mobile number and/or fax number for the employee.

Employment

  1. (Optional) Enter a Job title.
  2. From the drop-down box, select an Employment type for the employee. Learn about employment types on the ATO website.
  3. Enter the employee's Standard hours worked per week. If this varies, enter the average amount of hours worked per week.
    Please ensure this field contains a value greater than 0.00.
  4. Enter the employee's Start date. This is the date the employee was initially hired with the company, not the start of their reporting. Select the calendar icon to select a date from the calendar, or click in the field, manually type it in and then select the date from the calendar.
  5. If you type in the date manually, make sure any single-digit days/months start with a 0, and the year contains the first 2 digits (eg. 03/09/2020). You must click on the date in the calendar to select it after you've typed it in.
  6. Select a Pay schedule from the drop-down list. If you have not set up any pay schedules, select Unscheduled.
  7. Select a Pay frequency from the drop-down list.
    Pay frequency determines whether the weekly, fortnightly or monthly tax table will be used for this employee's pay calculations.
  8. Enter a unique Employee number.
Employee numbers must differentiate between each employee, and should be unique even in multiple instances of the same employee.
  1. (Optional) Select Add additional employment details if you wish to enter a Manager for the employee.

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. Select the State where the employee mainly works.
  5. Select the Residency status of the employee.
  6. Select the employee's Tax scale. This will default to Scale 1: Tax free threshold not claimed if the Residency was set to Australian Resident.
    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).
  7. 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.
  8. (Optional) In Optional settings, select any relevant HELP/TSL/SFSS debt and tax offsets.
  9. (Optional) If you do not want the employee to be included in STP reporting, select the option to Exclude this employee's data from being reported to the ATO via STP.
  10. (Optional) - Enter details for a Primary and Secondary emergency contact.
  11. Select Continue.

Leave entitlements

If your employee is not entitled to accrue annual or personal leave, select the X button to the right of the relevant leave type to remove it.

For all types of leave:

  1. 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.
  2. 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.
  3. Accrual rate will show as Accrual rate per time worked, per pay, or per annum, depending on what you selected for the Accrual period. Its default amount is based on the Annual entitlement and can be overridden.
  4. The Leave start date determines when the employee began accruing their leave. Typically, this date should be when the employee was first employed or when the employee 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. The Maximum accumulation allows you to put a "hard cap" on how much leave this employee can accrue regardless of the Annual entitlement. This will override the Annual entitlement without affecting leave accrual calculations.
    If there is no maximum accumulation, leave this field blank. Do not input 0.00 or 0, as this will limit the maximum number of hours accrued to 0 no matter how much the employee is paid.
  7. Select Pay on termination if you want all remaining hours of leave to be paid out when the employee is terminated.
  8. Select the Add other leave entitlement button to add other types of leave. By default, the system will allow you to select from Compassionate leave, Family & domestic violence leave, Long service leave and RDO. If there are other leave entitlements, you will need to create them as pay items in Settings in Reckon Payroll Web.
  9. Select Save & continue.

Initial YTDs (optional)

Initial Year-to-Date (YTD) figures are important if you are migrating employees from a different software within the financial year or you need to modify employee totals throughout the current or previous financial years.

This section excludes leave balances. Leave balances can be entered in Other details.
  1. Select the Financial Year.

Selecting the current financial year will allow you to modify current totals without editing pay runs.

These following instructions are for Earnings & leave, but can be replicated for any section. .
  1. Next to Earnings & Leave, click Add.
  2. Select the Earning or leave item.
  3. Enter in the Gross amount (YTD) for this earning item.
  4. Choose a STP reporting type:
    1. INB - individual non-business
    2. ETP - employment termination payment
  5. Choose a STP reporting category. The options shown will depend on what you selected for STP reporting type.
  6. Choose an Income type.
  7. Set the Effective Date. For historical records, you will want to set this to the End of the Financial Year (eg. 30/6/xxxx). For current records, you will want to set the date before their next payrun (eg. if their next payrun is on the 01/05/2024, then you will want to set the Effective Date to the 30/04/2024).
  8. Select Add to complete.
  9. Repeat for other sections.
  10. Select Save & Continue.

Other details (optional)

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

Opening leave balances
  1. Click on the text of the leave you wish to modify (eg. Annual leave).
  2. Enter the Quantity. This is the amount of hours of leave the employee has accrued.
  3. Select 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. Click on the pencil icon to the right hand side of the current payment method.
  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. Choose:
    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. If you wish to pay your employees via ABA files for an allocation, change the default payment type from Cash to 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.
  4. (Optional) Enter a Reference for their allocation.
  5. The Balance owing allocation defaults to Cash. If you wish to change this to Electronic funds transfer (EFT), select the pencil icon and enter the details.

ABA payments are made in Reckon One.

Superannuation:

  1. Select Enter details.
  2. Choose the fund:
    1. If no super funds have been created, select Create superannuation fund.
    2. If you have set a default fund, you can choose to use the default fund.
    3. Otherwise, select the Superannuation Fund and Fund Products from the drop-down lists.
  3. Enter in the employee's superannuation Member number. This will be unique per employee.
  4. Set the Join date for the Superannuation Fund. If you're unsure of what this is, confirm with your employee.
  5. 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 in Reckon Payroll Web.
    By default, every employee should have Super guarantee toggled on.
  6. Select Done to save these details.

When you are finished with this section, click Save & Continue.

Employee pay setup (optional):

Learn how to configure your employee's pay setup to save time when processing pay runs.

Read more

Need more help? Reach out to us on the Reckon Community: https://community.reckon.com/

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