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Thread: Quickbooks Payroll Screwed up my IRP5, now im super confused

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    Angry Quickbooks Payroll Screwed up my IRP5, now im super confused

    So Another lady was doing our payroll, and submitted the recon, now that im doing my tax and comparing my actual income to my IRP5, im wondering where SARS came up with these amount or if the IRP5 was wrong to begin with (I have seem QBP pull out random numbers to put on IRP5's before)

    Here is the situation, there is taxable income on the Payslip of lets say 300 000, a medical aid fringe benefit of 10 000, and a deduction for a car allowance for say 25 000.

    As I underdstand it, the car allowance is 80% tax deductable (or whatever this figure is), so my total taxable income will be 300 000 + 10 000 (this is taxable part of medical aid) + 80%(25 000) = Taxable income right?

    Income on my IRP 5 increased by a magical 200k! With no logical explanation. The tax paid is correct according to my payslips. but now I owe a huge amount on income I never got.

    I just need to know who to fight with, and alter the IRP5 to my correct amounts?

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    Silver Member geraldenek's Avatar
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    Hello Tatia

    Your taxable income should be 100% of the medical aid and not the 80%.

    Why do you say your income increased by 200k under which code does this reflect?
    Geraldene Kapp
    Professional Tax Help
    www.mytaxhelp.co.za

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    Site Caretaker Dave A's Avatar
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    Raise it with your employer. If it's wrong, they'll have to cancel the IRP5 and issue a new one - redo recons etc.
    No doubt they'll be thrilled

    Or they could pay you the income reported in the IRP5 and not paid over

    Quick Payroll certainly isn't easy to set up. Mind you, I've yet to see a payroll package that is.
    The trouble with opportunity is it normally comes dressed up as work.

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    The 80% is for travel allowance, not medical. and the income on the IRP doesnt match up to the payslips I was issued, the total all relfects under 3601.The Payroll just pulled it out of nowhere (Ive been doing HR and Payroll for over 4 years now and have never seen this before ).

    It seems as though the IRP5's are indeed wrong, Ive done the interrim Recon for them just to check all the IRP5's and suprise surprise it did it again! It even included IRP5's for people who started in september! (Understanding this should have been done earlier, but regardless it should have not added the new employees) AND all the income ammounts were wrong! this seems to be one problem id really not like to be stuck with again next year. Iv moved to a payroll system called Intercode, I gave it a bash this weekend, and am very inpressed, easy to use, more functionality than quickbooks, and the self help box, does just that! Never contacted support for anything, and my figures match up no problem.

    Seems like - I - will get left redoing the recon for last year, just so everyone's 100% sure its all correct.

    Wish me Luck.

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    Silver Member geraldenek's Avatar
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    Hello Tatia

    Yes sorry, did mean travel allowance - 100% should be included on the IRP5.

    Did you mention this problem to quickbooks? As i am working on pastel payroll and worked with VIP in past and none gave this problem.
    Geraldene Kapp
    Professional Tax Help
    www.mytaxhelp.co.za

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