ETP Tax Withheld, correction to be made

Question

Hello,

I've had 2x staff members receive ETP payments when resigning and have incorrectly coded the tax component as PAYG, not ETP Tax Withheld. I have the categories set up correctly in MYOB but need to adjust the tax so it is correctly reporting as ETP, not PAYG.

How do I go about doing this? I need a step-by-step guide on how to correct.

Both employees have obviously been terminated in MYOB and reported through STP.

Thanks.

Best,

Greg

Princess_R · Answer

Hi @GregApps,

Sure thing! You just need to open the original pay and reverse the transaction, so it cleanly offsets the original transaction. For Pay period and Payment date when re-recording the pay, mirror what you used on the original ETP.

Yes, the reversal and the replacement pay will produce a negative and a positive pay slip. To prevent employees receiving anything, change the Delivery Status on those pay slips to “Already Printed or Sent.”

Cheers,

Princess

GregApps · Answer

Thanks, @Princess_R .

Can I please check:

* What date should I use to 'reverse the incorrect ETP payment'? Does it need to be before staff were actually terminated?
* What dates should I use to 'record the ETP again'? Payment Date, Pay Period Start & Ending 
* Presumably when the reversal and reinstatement is made, it will create payslips for these staff (a negative amount for the reversal and a positive amount for the reinstatement). How do I remove them from the 'to be emailed' tab in Print/Email Payslips so they dont remain there indefinitely?

NB: Both staff's ETPs and terminations were in the current financial year, July.

Thanks,

Greg

Princess_R · Answer

Hi @GregApps,

This happens a fair bit when the ETP payments gets put under PAYG Withholding by accident. The fix is just to flip those amounts into the right ETP buckets and push an STP update so the ATO picks it up properly. Before anything else, make sure you back up your file. And because the employee’s been terminated and already reported through STP, there might be a couple of extra steps before you can record an adjustment. No stress, the full steps you need are on this link.

Cheers,

Princess