Single Touch Payroll - Updated Event or Payroll Event

Hi mamit 

An Update event is used when you are wanting to correct employee YTD amounts previously reported and is focused purely on the employee's Income Statement. It is also used for things like Finalising the STP and end of year (making Income Statement Tax Ready).

A Pay Event is used when reporting the payment of a wages etc to your employees. The information sent is the same as for an Update Event, however it also includes the W1 and W2 amounts for this payrun. The ATO use these W1 and W2 amounts to prefill online Activity Statements. The ATO accumulates the W1 and W2 for the reporting period. 

Employee YTD totals are sent with every Pay Event and Update Event. The ATO replaces all previous YTD totals each time an STP Report is submitted, it does not accummulate.

After reporting the initial pay as a Pay Event, you reversed that. Once the reversal was reported, the W1 and W2 amounts previously reported for this employees were also reversed. So when you processed the adjusted pay for this employee, it should have been reported as a Pay Event. 

MYOB confuses things by defaulting to an Update Event without consulting you whenever the Payment Date is no today's date, so some assume this is the correct approach. Sometimes it is, sometimes it isn't. Spend some time reading the forum, you will find many have been caught out by this, complaining about $0 Gross and $0 PAYG being reported.

Regards

Gavin