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JANELLE's avatar
JANELLE
Experienced Cover User
10 months ago

HECS/HELP - AMENDING FY 20/21, 21/22 AND FY2223 PAYMENT SUMMARY/FINAL FY PAYSLIP

I have been advised from an employee and his accountant that HECS/HELP that is deducted from his salary is not showing at the ATO against his name. Afer investigation is appears the HECS that was being deducted from his Salary was set up as a "deduction" and not a tax. When monthly PAYG payments were made to the ATO the HEC's amount was added as well but not apparrently finding its right home against the employees name to reduce his HECS/HELP debt. The amounts in question are as follows:

           FY2021  $    824.20

           FY2122  $ 5,569.38

           FY2223  $ 8,032.55

           Total:      $14,426.13

 

How do I amend his payment summarys so that these amounts in STP are not reflected against deduction for the FY's above and are reflected against tax which will in turn reflect against the employees HECS/HELP debt.

 

Your assistance with this would be greatly appreciated.

 

Regards

Janelle

 

 

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  • gavin12345's avatar
    gavin12345
    Ultimate User
    10 months ago

    Hi JANELLE 

     

    You need to first understand how the ATO treats hecs/help debt repayments. Technically there is not such things as a hecs/help repayment via the PAYG Withholding system. Yes an employer is required to withhold extra that 'may' go towards a Hecs/help debt, but it may not. It is not until the tax return is processed by the ATO that a liability for a hecs/help debt arises. If the employee's earnings are below the repayment threshold, all extra tax withheld will be refunded. If not enough tax is withheld, they will receive a bill.

     

    An employee can only make a hecs/help repayment directly to the tax office using a special form/payment method.

     

    If you decided to deduct extra tax instead of simply setting the employee to a Hecs/help tax table, then provided you sent the funds to the ATO with the PAYG withholding payments, the ATO will either refund these amounts if there is no hecs/help repayment due, or will apply the relevant amount against the hecs/help debt.

     

    When funds are sent to the ATO, they are not 'attached' to a particular employee. It is the Income Statement that you provide to the employee (or payment summary) which determines how much of the PAYG Withholding you sent to the ATO goes to each employee. If you have reported the wrong amounts via STP then yes you will need to amend those income statements.  So check what you have reported for PAYG for the employee and what you have paid to the ATO.

     

    Fix any mapping in the MYOB file, then lodge an Update event for the employee for the relevant year. MYOB is very limited here and you may have difficulty for FY 2021 and FY 2022. MYOB generally does not give you access to the earlier years to amend. You may need to use restored backups offline, or use other software such as STP Creator to make the corrections.

     

    Regards

    Gavin

  • Earl_HD's avatar
    Earl_HD
    MYOB Moderator
    9 months ago

    Hi Janelle,

    Thank you so much for your detailed post. I'm sorry to hear about the challenges you've been experiencing. I really appreciate your patience and understanding about this issue, and I do apologize for the delayed response.

    I concur with gavin12345's suggestion, and I would also recommend consulting with an accountant or reaching out to the ATO to address this issue.

     

    Please do let us know if you have further queries and one of us will be happy to assist you.
    Regards,
    Earl