termination annual leave pay mistake
I have just processed a final payment for unused annual leave and long service leave for one of my employees.
I've gone through all the steps including sending the information to the ATO via the STP and terminating the employee from my file and notifying the ATO .
The employee then SMS'd me and let me know I didn't include the 17.5% annual leave loading in the final pay.
How do I correct this, and how do I let the ATO know.
Do I reverse or just try to do another final pay just with the annual leave loading and PAYG entered?
What is the benefit of reversal over deleting and starting over again?
Do I need to reinstate her first before I can correct this?
Thank you very much for your help,
Kind Regards,
Jackie Bell
Hi JackieBell
The first step will be to remove her termination date from her card and make her active. Then you will need to remove her termination from the Payroll Reporting Centre by selecting her in the Employment Termination tab and clicking Remove and notify the ATO.
You can delete and reprocess the termination pay. When you declare that pay you will update the YTD amounts with the ATO so you will just need to check the STP report reconciles with the Payroll Activity and Payroll Register reports. Then you can re-do the termination in the reporting centre and her card.
When you make the payment you will pay the balance of what you owe her so that will mean 2 bank transfers and 1 payroll transaction. I'll include the link for matching bank feeds to multiple transactions to help if you use bank feeds.
These support notes will help you with the process -
Deleting an employment termination payment
Matching a bank feed to multiple transactions
Let me know if you have any issues
