Hi GLOP,
It’s clear you’ve been putting in a solid effort to keep your numbers on track. Let’s dive into what might be causing those differences in your end-of-year reporting, and I’ll guide you through fixing it.
From what you’ve described, it seems the discrepancy could be due to how payment items are categorised and reported. Specifically, payments in lieu of notice are likely being classified differently compared to gross payments.
Here’s the deal:
- Understanding YTD Reporting Differences:
The YTD Verification Report totals up wages classified as gross payments. These include regular wages, overtime, and other similar components. On the other hand, items reported under separate categories, like the Lump Sum A - Termination you mentioned, don’t appear in the “Gross Payments” column within the verification report.
- Finding the Breakdown:
To double-check, open the EOFY Finalisation tab in your Payroll Reporting Centre. For each terminated employee, click the three dots next to their name. This will bring up their individual Summary of Payments, where you’ll see a breakdown of all pay components, including Lump Sum A.
- Reconciliation Process:
Add together the Gross YTD figures from the individual Summary of Payments to what appears on your YTD Verification Report. This combined total should reconcile with the figures on your Payroll Activity Summary and Payroll Register reports. If the numbers are still off, let us know so we can dig deeper together.
- About the ATO Reporting Category:
As for your question about whether to move the payment in lieu of notice to "salary and wages," that’s a decision for your accountant. Payments in lieu are often classified under Lump Sum A for terminations, but it ultimately depends on the specific circumstances of the payment and the ATO’s guidelines. Double-checking with your accountant would ensure everything is accurately reported and compliant.
Regards,
Sai
