Employer pay run understated

Question

Hello

My most recent pay run included a new casual employee.  I set up the employee but did not successfully set a category for the pay item.  As a result, the pay run was recorded correctly in MYOB, but the total Gross Payment amount was not included in the STP for both the “employer pay run” and “employee pay run”.  In effect the Gross Payment was understated by the Gross Payment amount of the casual employee.  The total PAYG and Super was correctly reported for both employer and employee.

I noticed the error after the STP had been accepted.  I then set the category for the pay item to Gross Payments and sent an Event Update. This corrected the employee YTD figure however the employer pay run amount is still incorrect (understated by the Gross Payment amount of the casual employee).

As the pay item has now been categorised as Gross Payment I am concerned that reversing the pay will  further reduce the Gross Payment total held by the ATO.

Any ideas on how to fix this issue?

Genreve_S · Accepted Answer

Hi @kelanne,

Thanks for explaining what happened so clearly on the new employee's first pay run.

That update event you sent has already done the important bit; it’s fixed the STP YTD figures the ATO looks at. The gross amount on that original line in the STP window won’t change now, as it’s just the history of that first pay event.

As long as the STP YTD totals are now correct (which they are after your update event), you’re all good. You don’t need to reverse and redo that pay run just to correct the original gross amount in the STP window.

Regards,
Genreve