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How to fix RESC amounts

SOLVEDby QuickBooksQuickBooks Online Payroll1Updated July 16, 2021

As part of the year-end process, you should audit Reportable Employer Super Contributions (RESC) to ensure they have correctly been assigned to be paid to a super fund. This is to ensure they appear correctly on the payment summary/income statement. To audit RESC amounts, follow these steps:

  1. Run and export the Deductions Report using the date range Financial Year (or Last Financial Year if you are auditing last year's data) and filter the report by selecting the relevant RESC deduction category
  2. Run the Super Contributions report using the date range
  3. Financial Year (or Last Financial Year if you are auditing last year's data) and filter the Contribution Type to Salary Sacrifice
  4. Compare the total $ amounts between both reports. If they match then you are reporting correctly and there's no need to proceed.  If the amounts don't match, review each employee to identify where the difference lies.
  5. Once the differences are identified, you will need to fix them. The method used to fix this depends on whether the amount comes from the employee's opening balance or from within a pay run.
  6. Once the corrections required are made, run the Super Contributions Report and the Deductions Report again to ensure the totals now match.

Need more help running the above reports?

  1. Select Employees from the left-hand menu
  2. Select the Reports tab within Payroll
  3. Select Deduction Report (located under the Payroll column)
  4. Select Calendar Icon, then select Financial Year (or Last Financial Year)
  5. Select the drop-down next to Deduction Category and choose the category you have been recording RESC for
  6. Select Excel, CSV or PDF to export
  1. Select Employees from the left-hand menu
  2. Select the Reports tab within Payroll
  3. Select Super Contributions (located under the Payroll column)
  4. Select Calendar Icon, then select Financial Year (or Last Financial Year)
  5. Select the drop-down next to Contribution Type and choose Salary Sacrifice 
  6. Select Run Report 

 

There are two areas where RESC payments, either the Openings Balances or in a Pay Run/s, additionally the issue may be a result of an incorrectly set up pay run inclusion.  below you'll find instructions of how to correct these:

Fixing RESC payments incorrectly entered into an Employee's Opening Balance

If there is an opening balance amount in the Deductions Report follow these steps:

  1. Select Employees from the left menu.
  2. Select the employee’s name.
  3. Select Opening Balances.
  4. Update the RESC amounts in either Super & PAYG or Deductions depending on the situation(see below)
  • If the RESC payments were over and above the SGC amount but weren’t salary sacrifice deductions, (e.g. the amount wasn’t deducted from the employee’s earnings), enter the total of these payments in Employer Super Contributions section under Super & PAYG.
  • If the RESC payments were made as part of a salary sacrifice arrangement (e.g. pre-tax deductions from employee earnings) enter them in the Pre-tax Deduction or Super Salary Sacrifice - Pre Tax section under Deductions.

Note:

  •  For deduction amounts to appear as RESC amounts on the payment summary, they must be a pre-tax or salary sacrifice deduction and have the RESC checkbox ticked.

Fixing RESC amounts incorrectly entered via a Pay Run

In most cases, this is a result of the RESC payment being set to Manual when it should be set to the Super Fund it will be paid to.

If there are RESC amounts listed in pay run/s in the Deductions Report follow these steps:

  1. Select Employees from the left-hand menu
  2. Select the New Pay Run button
  3. Ensure Pay period ending and Date pay run will be paid are within the relevant financial year.
  4. Select Manually add employees to this pay run 
  5. Select Create 
  6. Select Pay Run Actions  and choose Add Employees 
  7. Add all relevant employees, then select Close 
  8. Select the first employee
  9. Select Actions and choose Deductions 
  10. Select the RESC category you have been using
  11. Under the Select a Payment Option choose Manual
  12. Enter the total amounts paid during the financial year as a negative (e.g. if you've made $4000 of payments enter -$4000.
  13. Select Actions and choose Deductions 
  14. Select the RESC category you have been using
  15.  Choose Pay to Super Fund from the Select a Payment Option
  16. Enter the total amounts paid during the financial year (e.g. if you've made $4000 of payments enter $4000.
  17. Add correcting payment method only into the Notes for this Pay Run section
  18. Repeat this process for all relevant employees
  19. Select Finalise Pay Run 
  20. Select Finalise 

Note: If you do not add something into the Notes for this Pay Run section the employees will be removed from the pay run upon finalising the pay run as their total earnings are $0.

The RESC payments have now been corrected.

Fixing RESC amounts incorrectly set up via Pay Run Inclusions

If you have set up RESC as a pay run inclusion you should double-check the set up for salary sacrifice deductions. To do this, generate a Pay Run Inclusions report to review any ongoing RESC. You will know an employee's pay run inclusion needs fixing if the deduction category is not set to be Paid to a Super Fund.

Follow these steps to audit and correct an employee's pay run inclusions:

  1. Select Employees from the left-hand menu
  2. Select the Reports tab
  3. Select Pay Run Inclusions Report (located under the Payroll column)
  4. Apply any relevant filters, then select Run Report 
  5. Identify and take note of any employees who have a Pay Run Inclusion for your RESC deduction where the Paid shows as Manually 
  6. Close the report by selecting the in the top right-hand corner
  7. Select the first relevant employee
  8. Select Pay Run Inclusions from the left-hand menu
  9. Select the RESC Deduction Category
  10. Select the option Paid to a Super Fund from This deduction should be 
  11. Select the relevant Super Fund
  12. Select Save 
  13. Close the employee's settings by selecting the in the top right-hand corner
  14. Repeat this process for all other relevant employees

Note: If you will complete a pay run between now and the end of the financial year then there is nothing else you need to do, however, if you have completed all the pay runs in this financial year then create and lodge an update event to update the ATO with the correct information.

Content sourced from KeyPay

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