When calculating my BAS, why am I getting the following (similar) warning message?
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 calulated 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 elgible for a payments 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 Setting Up A New Flat Rate Scale.
To check (a) and (b):
OPTION 2 if option 1 does not give you enough detail.
To check (c):