Correcting a mistake using STP

[GaryKK]

we are using Accountright.

We have already setup STP.   I wonder when will the data being sent to ATO, is that when we record the next payroll or when we print the payslip?

In case we made a mistake, that happened a few times a year in the past, normally we deleted the old record and input correct one to replace.  with STP on roll now, can we still correct it this way? If not, please advise how we should make correction.  Also if this is the case, I think the payroll record already been sent to ATO should not be deleted by any user.  we have a few staff has premission on payroll

thanks

[FreedomTas]

  I am also interesting in this as well as I delete rather than reverse as the correction is completed on the same day. I have quite a large payroll so, how will this effect me when paying tax? For example, today I deleted a pay for the amount of $14,250 as the tax calculation was too high and put in the correct amount. Does this mean now that ATO how 2 amounts of $14,250 on their system I will have to pay tax on?

[Satyam_N]

Hi @GaryKK & @FreedomTas

Thanks for posting on the MYOB Community Forum.

You will know when AccountRight is sending payroll details to ATO, because when you hit ‘Record’, a ‘Declaration Tab’ will pop up asking you to send the details to ATO.

Regarding correcting the Mistakes-
According to ATO the information that is reported to them will include Year to Date (YTD) figures. Hence you will only need to ensure ATO have the correct amounts recorded. The employee's year-to-date values will not include details of the overpayment/underpayment.

So in case there is a mistake, you can make these fixes in the next regular pay cycle report for the employee by increasing/reducing the employee's year-to-date figures and your employer-level gross payment and withholding figures.

You can find more information in this article on the ATO website- Correcting a Pay Event Report

Do let us know how you get on and if you require further assistance.

[FreedomTas]

So that means you can no longer delete payroll transactions, you have to reverse them??

[Satyam_N]

Hi @FreedomTas

You can still delete the payroll transaction, if you are redoing the payroll by deleting the previous one, ATO won't record both. They will just have the YTD figures that you have in the amended payroll.

[JoyG]

But how will the ATO know which YTD is correct ?? If you have deleted higher amount and completed a new wages with the lower YTD for the same payrun which one will they accept as the YTD??? 

[Satyam_N]

Hi @JoyG

Thanks for posting on the MYOB Community Forum.

The ATO will record the YTD figures for the latest payrun you did. Irrespective the previous figures were higher, the latest payrun will overwrite it.

In regards to what you need to do to make sure it works-

If I made a mistake and declared it:

1. I can delete this Payroll.

2. Re-do the pay but NOT declare it.

3. Leave it as is until my next Pay Cycle.

4. Run the next Pay Run (Hopefully without errors) & declare this one.

This will send the corrected YTD information in the next Pay run you send.

If I made a mistake and did not declare it:

1. I can delete this Payroll.

2. Re-do the pay and declare this one.

The ATO did not know about the mistake before and don't need to.

I hope this clarifies the situation a bit, please let me know if you have any other questions.

[FreedomTas]

If I made a mistake and declared it:

1. I can delete this Payroll.

2. Re-do the pay but NOT declare it.

3. Leave it as is until my next Pay Cycle.

4. Run the next Pay Run (Hopefully without errors) & declare this one.

Leave it until the next pay run? Can you explain why this would be beneficial as there will still be 2 pays to process for that employee? If you do not declare it, then you cannot process it, and use .aba files. This would then mean they will not receive a pay?? Or have I missed something?

[JoyG]

If I made a mistake and declared it:

1. I can delete this Payroll.

2. Re-do the pay but NOT declare it.

3. Leave it as is until my next Pay Cycle.

4. Run the next Pay Run (Hopefully without errors) & declare this one.

The Deleted pay is only for 1 person, if I'm Re-doing this the orignal will still be the STP file for the ATO.

Wouldn't I have to send this file as it would contain 60 employees payroll ??? 

As we RE-DO the pay it going to ask me to send the file for 1 pay or sit waiting to send, if it's still in next pay cycles then that 1 person wouldn't get paid !! 

Every time your complete a single wage it makes a STP / ATO file 

If I made a mistake and did not declare it:

1. I can delete this Payroll.

2. Re-do the pay and declare this one.

The ATO did not know about the mistake before and don't need to.

This is OK if your completing 1 pay, when your completing 60 pays it will be still in the file that is being sent. 

I'm guessing all wages even if they haven't been paid / still in elecrontic payments are going to need reverse transcastion other wise we are having to complete FIX with ATO.  

Yes I can leave wages in save file untill fully checked but late amendments will have to be reversed !! 

It's a sham that the file can't be created like reports and then uploaded weekly once the everything has been checked and payment completed. It seems like alot of extra work with FIX and notify ATO of errors that wasn't even paid because we can't remove that info from the file. 

[oyster]

Went along to the STP Workshop and this is what I learned...

You can continue to 'fix' payroll mistakes the same way you currently do right now.  Delete them, reverse them, record an adjustment (void) or put through a negative pay - pick your medicine. 

The source of truth (according to the ATO) are the amounts that are in your software, in this case, AccountRight. More specifically, the YTD amounts in Pay History within the employee's card file.  Every time, you send/declare payroll details through to the ATO, it's these amounts that are sent through to the ATO according to their assigned ATO categories. 

So if you put these 2 points together, this is what you get...

Deleting and reversing pays won't send YTD amounts to the ATO. But they will reduce the YTD amounts within the employee's card file. 

So when you record the 'correct' pay (one the same day or later), this will update the YTD in the card file which is then sent to the ATO. This is the amount that will show in the employees' myGov accounts. 

Lastly, the YTD the ATO receives from you can go up, down but it cannot be a negative amount.