Payroll EOY and ATO Report

Question

Payroll entered after 30th June and reported to ATO after 30th June, for payroll prior to 30th June, appears on ATO report as nil gross and nil tax deducted. Consequently ATO YTD Verification Report and MYOB Payroll YTD report do not balance. Unfortunately payroll could not be entered for June prior to 30th June due to absence from business. Any suggestions?

Tracey_H · Answer

Hi @GC123

If you process a pay in the new payroll year (e.g. 1 July or later) but the Payment Date is in the previous payroll year (e.g. 30 June or earlier), the ATO will treat the pay as an update event. Even if the pay contains amounts that you're reporting to the ATO, they'll consider it an update event (and not a pay event) because it's related to the previous payroll year.

* A pay event can only occur in the current payroll year, where both employee and employer year-to-date totals are submitted to the ATO. A regular pay run is considered a pay event.
* An update event can occur in the current or a previous payroll year, and only the employee's year-to-date totals for the applicable payroll year are sent to the ATO. Recording a $0 pay is considered an update event

Even though the pay run shows as a $0 update event in the STP reporting centre, the updated year-to-date payroll totals (for last payroll year) for the employees in the pay run will still be reported to the ATO.

You can check the YTD amounts are correct by clicking on the report and then click on View employee YTD report. Clicking on the report will also show you the Event type.

Please let us know if you need further help.

GC123 · Answer

Hi Sam

the payroll reporting centre indicated that the pays for each employee were " accepted " by the ATO

yet the report still shows zero balance against each employee for gross pay and payg witheld

regards Gordon

Sam_R · Answer

Hi @GC123,

Thanks for your post.

When you tried to report this pay run for the previous financial year, did you receive an ATO rejection error code?