Check your Payment Summary.
As we see more and people for income tax returns, we’re also coming accross a disturbing number Payment Summary miscalculations and items included under the wrong labels.
New label confusing employers
The most common error on Payment Summaries we are seeing this year seems to revolve around the new item, Reportable Employer Super Contributions (RESC).
A number of employers seem to be including the compulsory 9% Super Guarantee here. Standard 9% super contributions are not included in the RESC.
Typically, reportable contributions would be those resulting from a salary sacrifice arrangement and other contributions which are influenced by the employee.
Incorrectly reporting the super guarantee under the RESC label can negatively affect a persons entitlement to certain tax offsets and government benefits.
Doubling up
The next most common error we’re coming accross is including Allowances in Gross Payments and again under Allowances. Amounts to be included under the “Allowances” label are not to be added to the Gross Payments. The same is true for Reportable Fringe Benefits.
Fix it, please
Where we have picked up on these items, we’ve notified the employers and helped them amend the figures in order to accurately complete returns. If you notice these or any other errors on your Payment Sumamry, let the pay office know. It”s important that your employer updates the ATO with the corrected information to ensure the other agencies (such as Centrelink and Child Support) are using the right figures and to avoid ATO data matching issues down the track.
Article by Christie Lewis
Christie is Practice Manager at Alan Lewis Accountants . Besides accounting, her passion is for all things small business (and blogging, of course). You can contact Christie directly at christie@lewistaxation.com.au.
Christie has written 799 awesome articles for us at Alan Lewis Accountants – BLOG
Twitter: @christielewis
