BAS W2 figure warning.

BAS W2 figure warning.

BAS W2 figure warning

Getting the following (Similar) warning message when calculating the BAS

 

The Pay As You Go (PAYG) withholding system is used to incrementally put aside portions of each employee's salary (i.e. withhold it), every pay day throughout the financial year to cover the employee's expected tax bill (liability) at year's end.

The W2 figure is the total amount of PAYG tax withheld from the total of salary, wages and other payments made to all employees, for a specific BAS period.

When the W2 figure calculated from the payroll does not equal the amount in the PAYGW account (which accrues each time a cashbook transaction is created for a matching pay), this indicates that:
(a) A pay/s has been entered into the payroll but not into your cashbook (or vice versa), OR
(b) There is at least one pay with a Date Paid in the payroll that is different to transaction date in the cashbook, OR
(c) The wages account used has not been ticked as a Wages Account in the Chart of Accounts setup.

(d) OR the employees tax scale is set to 75 or above. Employees on a tax scale of 75 or above will not be eligible for a payment summary, which can cause this error.
A new flat rate tax scale will need to be set and assigned to the employee, with a number of 74 or below. See the following Setting Up a New Flat Rate Tax Scale.

To check (a) and (b):

OPTION 1:

Click on the Check Wages button on the BAS window. This will detail cashbook transactions without a matching payroll record, and vice versa

OPTION 2: 

If Option 1 does not give you enough detail

Step 1. Click on the Review tool bar icon

Step 2. Enter the Account Code: PAYGW

(or choose the appropriate description if selecting by description. eg. PAYG Withholding Tax).

Step 3. Enter the Date Range

  • Enter the Date Range (i.e. the date range for the BAS period that you are calculating)
  • This shows the PAYG Withholding Tax that has been entered into Cashbook
  • Click on the Print button (Printing this report will make it easier to compare entries in Cashbook and entries and Payroll.)

Step 4. Select Reports Menu Option

  • Click on the Payroll > Reports menu option
  • Select Pays History
  • Select Report Type: Detailed by employee
  • Enter Period From and To (i.e. the date range for the BAS that you are calculating)
  • Use Date is the Date paid
  • Click on the Print button
  • Print this report

Step 5. Change Use Date to Pay period end date

Click on the Print button. Print this report, as well

Step 6. Compare the figures in the printed reports

  • Now that you have 3 different reports that show the information in PAYGW you can compare the figures
  • Look for a pay that has been entered into payroll but not into cashbook.
  • Alternatively, there may be a pay with a different date paid to pay period end date. The BAS is calculated on date paid rather than the pay period end date so there can be a pay in cashbook (with the accompanying tax), that isn’t included in the payroll tax amount.

Step 7. Correct the Error

  • If you find a pay that has the wrong dates or a pay that has been entered into payroll and not into cashbook or a pay that has been entered into payroll twice then you can correct the error.

To check (c):

Step 8. Select Chart on the tool bar

  1. Type in the account code/description for your wages account into the Search For Code box

  • Click on the Edit button.
  • Tick the Wages Account box.



Article ID 636