Payroll errors can no longer be deleted.

Stephen_Blackt
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Payroll errors can no longer be deleted.

Hi,  Since version AR 2020.3 payroll transactions can longer be deleted if they have been reported via STP.

The problem is cleints make mistakes, I have made a living for 22 years in be able to fix and tidy up client files, so only relevent transactions are shown in the MYOB file. This makes it easy for auditors & tax accountants to use the file for year end reporting/ tax return lodgement and the clients are happy having a clean file.

I am guessing this is a ATO requirement? If so why are we being hamstrung / dictated to, by the ATO in how we run our accounting system?  Surely as long as the payroll balances at year end the ATO should be happy!

Please allow deletion of payroll transactions even if they have been reported to the ATO.

Regards

Stephen Blacktop

MYOB CC

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Steven_M
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Re: Payroll errors can no longer be deleted.

Hi @Stephen_Blackt 

 

As has been indicated, a change was made with AccountRight 2020.3 to the way in which payroll transactions can be deleted. If the transaction has been accepted by the ATO, that transaction is no longer able to be deleted as with previous versions of the software, it now must be reversed. To my knowledge, there is no requirement by the ATO in STP documentation that a payroll transaction must be reversed in the software or whether it can be deleted. However, below are the reasons reversals of those reported pays have been made mandatory within the software:

  • Provides a better audit trail of the pay events sent through to the ATO
  • Aids in the prefilling of BAS amounts

We do understand this is a change from previous versions and can have some other implications within the software, to which we shared that feedback. However, it is currently a reversal process with the current versions of the software (AccountRight 2020.4).

Kind regards,
Steven

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Tony_Perry
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Re: Payroll errors can no longer my be deleted.

Totally agree Stephen, makes for very messy client files, especially when they make a mistake, then reverse "oops not sure I should do that" and redo and reverse....I am not kidding, we understand clients don't, hence them contracting us, payroll has become an accounting nightmare not an effective audit trail, we have our processes in place to sort the errors and the processes for end of year to ensure reconciliation. We should be able to continue with those processes. As far as I'm aware it isn't a requirement of the ATO.

Stephen_Blackt
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Re: Payroll errors can no longer be deleted.

Hi Steven,

I don't believe it provides a better audit trail within the businesses accounting system, quite frankly I don't care what it does or does not do for the ATO, until year end. I am about to cut a cleint loose because they have entered multiple pays and reversals over a number of months, I can't figure out what to do to fix it without spending many hours and still not knowing if it correct then giving the cleint a bill they can't jump over. Previously it was easy just delete pays as necessary and reconcile the bank account, too easy, but not now.

 

As an aside; it appears in version 2020.4 that when an electronic payment is reversed it no longer reverses to the payroll clearing a/c (cash Payment A/c) despite the message saying it will be treated as a cash payment. Is that a new change or an "undocumented feature"?

Regards

Stephen Blacktop

Steven_M
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Re: Payroll errors can no longer be deleted.

Hi @Stephen_Blackt 

 

When reversing a payroll transaction it will put the Payment method as Cash but retain the original Pay from Account from the original transaction. For example, if the Pay from Account is 1-050 Electronic Clearing Account with the payment method being Electronic. If you then reverse that payroll transaction the payment method will be updated to Cash with the Pay from Account remaining as 1-050 Electronic Clearing Account. This is similar behaviour to AccountRight 2020.3.

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Steven

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Wilfredr
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Re: Payroll errors can no longer be deleted.

I totally agree, this must change 


@Stephen_Blackt wrote:

Hi,  Since version AR 2020.3 payroll transactions can longer be deleted if they have been reported via STP.

The problem is cleints make mistakes, I have made a living for 22 years in be able to fix and tidy up client files, so only relevent transactions are shown in the MYOB file. This makes it easy for auditors & tax accountants to use the file for year end reporting/ tax return lodgement and the clients are happy having a clean file.

I am guessing this is a ATO requirement? If so why are we being hamstrung / dictated to, by the ATO in how we run our accounting system?  Surely as long as the payroll balances at year end the ATO should be happy!

Please allow deletion of payroll transactions even if they have been reported to the ATO.

Regards

Stephen Blacktop

MYOB CC


 

JulieG2
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Re: Payroll errors can no longer be deleted.

I agree, this is a nightmare. Our process has been to record payroll as a bank file batch in EP. Then review and delete and change as applicable. Once that bank file batch is complete, is final. We have as a general rule , no reversals because of the problems in bank recs for everything!

If we do this now, that deleted transn can not easily be reinput as correct, to STP. How to correct this in STP?

Why should we have to change our system of checking, because it is easy for MYOB?

Our MYOB accounting is sound, just STP is incorrect - how to correct? ie that deleted transaction must be reinput for STP purposes but not for MYOB.

Steven_M
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Re: Payroll errors can no longer be deleted.

Hi @JulieG2 

 

Payroll reporting (STP) is based on year-to-date information. If a change to a reported pay is required, reversing out that particular pay will update the year-to-date information of that employee so when you next report information you are sending updated figures to the ATO.

For more information on how changing a pay will affect STP check out Help Article: How does changing a pay affect Single Touch Payroll (STP)?

Kind regards,
Steven

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MySOS
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Re: Payroll errors can no longer be deleted.

Hi @Steven_M 

 

With this process in place of reversing payroll transactions, how do we then pay the resulting adjusted super if super had already been paid before the reversal took place?

 

It appears to be making the super on the reversed transaction marked as paid so it doesn't show up anywhere to allow the adjusted amount to be paid through MYOB PaySuper

Margaret Whitfield
My S O S


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Mobile 0488 505 505   info@mysos.com.au

Steven_M
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Re: Payroll errors can no longer be deleted.

Hi @MySOS 

 

My understanding is that if the user does reverse a pay it would generate a second transaction that is placed against the employee. As that transaction should be separate from the original, historical paid values shouldn't be attaching to the transaction. Thus the reversal pay should be showing as not paid in the Pay Superannuation window. If that situation is occurring, we may need to investigate the product in more detail and world recommend starting a new thread on that topic.

Kind regards,
Steven

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