STP Correction - Guidance Required

Hi Lisa_JK,

That’s definitely a tough one. Since the employee’s already done their tax return and the leave payment wasn’t technically reported the usual way through STP, the best move here is to check in with the ATO. Their rules on fixing things like this can change, so double-checking with them will make sure you’re covering all the bases and won’t run into problems later on.

Hopefully, someone else here who’s been through something similar can jump in and share how they handled it, too.

Cheers,

Princess

Hi Princess_R​,

A spanner has been thrown in the works.  My client contacted the employee before proceeding to undo the finalisation etc, and the employee advised that they had already submitted their tax return with the ATO.  What to do now?  Is it ok to just leave this alone even though the unused annual leave paid on termination hasn't technically been reported correctly for STP?  I don't believe there would be no income tax implication as there were no special tax rates applicable so the tax would be the same regardless of the way it was recorded and reported.  

Has anyone else had a similar situation and how did you proceed?

Thanks in advance

Lisa

Hi Lisa_JK,

Absolutely, you’ve nailed the process! Just remember to remove the termination date from the employee’s card, set them as active again, and then clear the termination in the STP reporting center. Fingers crossed it all goes smoothly!

Cheers,

Princess

Thanks Princess_R​ 

May I just confirm what I think the correct order of steps should be.

1. Undo finalisation for 2024/25 FY for the employee in question
2. Remove termination date from STP reporting centre
3. Enter the payroll correction transaction into MYOB in the 2024/25 FY and submit for STP
4. Once step 3 is accepted, re-enter termination date into STP reporting centre
5. Redo finalisation for 2024/25 FY for the employee in question
6. Keep fingers crossed that there are no issues :)

Have I got that right, or have I missed anything?

I really appreciate your help.

Hi Lisa_JK,

Great catch, and you’re absolutely right. It’s easy to miss things like payroll categories when things get busy, especially when someone’s leaving. The steps you’ve come up with are exactly what you need to do, plus if you’ve already reported the termination for that employee, don’t forget to remove the termination date as well. That way, your ATO reports will have all the right info, and everything will balance out perfectly. 

Cheers,

Princess