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NC-CAA's avatar
NC-CAA
Experienced Cover User
2 years ago
Solved

How to reinstate employee in new payroll year who was terminated in previous payroll year?

When following prompts to check \ transition to STP Phase 2, an anomaly regarding an employee was generated, showing employee (who is currently employed) as being "terminated". Without paying attention, I removed the termination, and sent an update event to ATO, but then reversed that when I realised that was probably incorrect procedure since he was terminated in 2021\2022 payroll year.

 

The employee left in Aug 2021 (payroll year 2021\2022) and then rejoined the company in Aug 2022 (payroll year 2022\2023). 

 

It seems easy to reinstate\reactivate an employee's card and put notes in the contact log for historical purposes. 

 

However, I don't know what to do in the STP Reporting Centre.  If I leave the employee as terminated (when on the payroll year 2021\2022), it appears to continue to keep that status for this current payroll year 2022\2023, on the "Employee Terminations" and "EOFY finalisations" tabs. (screenshots below)

 

 

is it as simple as clicking Undo below?  or will that also undo from 2021\2022?  I don't want to send a gazillion incorrect updates to the ATO...

 

If anyone could point me to a MYOB how to article I would be very grateful.  I could only find this article which describes process if employee is terminated and rehired in the same payroll year, which is not my scenario. Reinstating an employee - MYOB AccountRight - MYOB Help Centre

  • Hi NC-CAA 

     

    My apologies for the delay in getting back to you. When you terminate an employee a report is sent to the ATO with the required information. When you remove the termination a new report is sent, so the original report still exists. Removing the termination tells the ATO that the employee has been re-employed.

     

    You could record termination details in the employee card for record keeping purposes.

     

    Please let me know if you need further help.

     

    If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.

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  • Hi NC-CAA 

     

    Thanks for your post. When you terminate an employee in the STP reporting centre>>Employee terminations tab it notifies the ATO that the employee is no longer employed by your business. If the employee is reinstated you can remove the termination which will notify the ATO that the employee is working for you again.

     

    Please let me know if you need further help.

     

    If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.

    • NC-CAA's avatar
      NC-CAA
      Experienced Cover User

      Hi Tracey

      Thanks for your quick reply.

      Before posting this query I had done what you suggested but then was concerned because I noticed when I viewed the 2021\2022 payroll year it had also removed his termination from there (to me that felt as though it would indicate he never left).

       

      So does it not matter that the employee then no longer shows as having been terminated in the previous payroll year?

       

      Is the only way to keep a record of an employee leaving and returning via manual notes (e.g. in the contact card section on their employee card?)

       

      Regards,

      Narelle

       

      • Tracey_H's avatar
        Tracey_H
        Former Staff

        Hi NC-CAA 

         

        My apologies for the delay in getting back to you. When you terminate an employee a report is sent to the ATO with the required information. When you remove the termination a new report is sent, so the original report still exists. Removing the termination tells the ATO that the employee has been re-employed.

         

        You could record termination details in the employee card for record keeping purposes.

         

        Please let me know if you need further help.

         

        If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.