Re: Employees ETP and tax withheld not recorded in STP figures

seqtt

Why is the ETP Tax Withheld category created for Monies paid in lieu as an ETP, as described in the MYOB guidelines for creating ETP payroll categories (see attached) set up as a Deduction  and not a (separate from PAYG Withheld) Tax? 

As a result Payroll Liabilities on my Balance sheet don't reconcile with my Payroll Activity Summary.

Because I've finalized my STP, I now have to prepare and report amended Income Statements to ATO for those employees that received an ETP payment last payroll year.

ETP Tax Withheld problem.pdf

Tracey_H

Hi @seqtt 

 

Thanks for your post. As you are not able to create new tax categories, ETP tax withheld does need to be set up as a deduction. When creating that payroll category you do need to select the applicable liability account. You can create your own liability account or select one already in the accounts list:

 

 

This will determine how that ETP tax amount is reported on your Balance Sheet:

 

 

Running the Payroll Activity detail will allow to reconcile that amount with your Balance Sheet. You will also need to select the ETP Tax Withheld category in W2 of your BAS setup to include those amounts in your withholding total.

 

Please let me know if you need further help.

 

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