What am I doing incorrectly? I have a PAYG liability on the balance sheet and I shouldn't have a liability at all. Clearly I'm posting to the wrong cost code. Can someone help please? It is costed to 2-1180 PAYG Withholding Payable which is where all the employee payg is currently being pulled from.
Hi AwG1,
Thank you for your post. I understand that occurred a PAYG liability in the balance sheet report. May I ask if you have set up the PAYG same as the steps in this link and kindly check this as well with your accounting advisor with the account or cost code that you may use.
Feel free to write a post if you need further assistance.
Cheers,
Jem
Hi Jem
Thanks so much for getting back to me. Yes, I do have the linked payables account set up correctly. Not sure what I have done and it has really thrown it all out. Any other advice?
thanks
ET
Hi AwG1 ,
In this type of scenario, it’s advisable to consult with an accountant or financial advisor for an accurate solution. However, to give you an idea, if your PAYG liability is being incorrectly allocated, ensure that the payroll categories for PAYG withholding are linked to the appropriate liability account (2-1180 PAYG Withholding Payable). Additionally, review the transaction journal for payroll entries to confirm correct posting and verify that PAYG liability payments to the ATO are recorded against the correct account.
Regards,
Earl
It is highly likely that you have your super (& others) categories liability account set to the PAYGW liability account.
(You are not alone with this error just about every data file that I seen that was setup by the end user makes the same mistake - its caused by the fact that MYOB has a single global 'default wages liability account')
You should have a look at your Super payable liability account, if you have actually been paying super to a clearing house (ATO or other) you'll probably notice that that account does not reconcile either (probably showing up in the liabilities as a Debit).
I noticed that you mentioned that you are 'posting' to the wrong account --- If you are talking about the actual payment of the liability to the ATO I'd suggest investigating the Pay Liabilities button on the Payroll Command Centre. Once you have all your liability accounts in wages categories fixed this button will help you keep on the straight and narrow.
(Technically speaking all payroll liabilities can be dumped into a single liability account and while Pay Liabilities helps A LOT to accomplish this feat, I'd highly discourage anyone from doing so)
