Employee loan repayment not included in Gross Payments (YTD)

[Enmark]

I'm currently going through the EOFY Finalisation process and note that gross wages to report are being understated. There's an employee who repaid a loan in a pay run via the Deduction/Advance Repayment payroll category and this repayment is now being deducted from his Gross Wages so that his Gross Payments (YTD) is being understated by this repayment amount.

I'm unsure if this can be corrected in any way or whether I need to process an amending pay run for him so that his gross pay will be reported correctly.  Looking at the Deduction/Advance Repayment payroll category I can see that the Tax box was ticked in the Exempt field. 

Cheers  Stephen

[Komal_S · Accepted solution]

Hi @Enmark 

Any payroll categories that have been assigned to Gross Payments but are  exempted from PAYG Withholding will not be reported through STP. Therefore, please check if PAYG should be exempt or not from this loan repayment with an accounting advisor. If you untick the exempt option, and process a $0 pay, the figures would be updated correctly. 

Let me know if you have any questions. 

[Nag]

I am having the same issue in Essentials. The employee loan payment is not included in the gross income being reported to the ato via stp. The deduction is marked as not reportable and to be deducted after tax is calulated. Tried changing it to before tax and running a nil pay but that did not help. This payroll category is not allocated to gross payments with no PAYG WH as suggested in the solution - it is a deduction. The solution offered does work for leave loading but not for deductions.

[Komal_S]

Hi @Nag 

Sorry for delay in getting back to you. 

Can you please confirm if you managed to resolve your enquiry? If not, we do recommend checking out End of Payroll year resources.

Please do not hesitate to post if the issue is still unresolved.

[Nag]

Hi Komal

The issue has not been resolved by MYOB. I spent an hour 20 mins on the phone 8 days ago. The consultant used team viewer to check that everything was set up properly in the payroll and it was so he was unable to assist. Because he advised it would be another 2 hour wait on the phone to be transferred to a specialist team he offered to have someone call me back within the next 2 days - 8 days later and no call. At the suggestion of a MYOB training person I was working with on Monday I logged a support request on the MYOB website.  This was the response -

'Thank you for contacting the Partner Support Team. I regret to advise that we’re unable to assist with Single Touch Payroll enquiries via this support channel.  Please refer to the following help site: ? Single Touch Payroll

If you require further assistance please contact the partner support team on 1300 555 117.' Not very helpful.

In desperation this morning I have recorded a ficticious $4339 pay for the employee with the issue (this was the amount of loan payments deducted from the after tax pay and the amount the gross income was short by). I have now transmitted the finalised STP report to the ATO with the correct figures and have then deleted the ficticious pay. I should not have had to do this but have not had much joy with assistance from MYOB. Thanks for getting back to me.

[Komal_S]

Hi @Nag 

I'm sorry that you had that experience. We're also glad that you were able to find a workaround that worked for you and we have shared this with the fellow users as well, so they can benefit from it. That being said, we do hope that the processes in the next year end would be more streamlined.

Please feel free to post if you have further suggestions or queries.