Forum Discussion

Chris_Hartigan's avatar
Chris_Hartigan
Experienced Cover User
4 years ago
Solved

EOY Payroll not balancing to ATO.

I have balanced my EOY Payroll to the Reports available thru MYOB and back to my General Ledger. I have also double checked Bank to make sure all is in order. However, when I run the new report thin...
  • Emily_B's avatar
    Emily_B
    4 years ago

    Hello Chris_Hartigan 

     

    In trying to narrow down why you are experiencing this imbalance, I would first suggest following the same steps outlined to Jane. 

     

    As you have indicated, your MYOB reports reconcile (Payroll Activity and Payroll Register summaries). Generally, when these reports are correct but YTD reports don't match, it suggests that the problem lies within incorrectly assigned ATO reporting categories or PAYG witholding errors. I understand that you believe these to be correctly attributed, as your other employees are reconciling accurately. However, please double check, as something could have been changed by accident during the year, resulting in a discrepancy down the line. 

     

    Then, if you haven't already, try a $0 pay for your terminated employee (instructions here).  You will need to change their status to active in the system, run the $0 pay, and change to inactive again. This could fix what may be a fluke somewhere that we can't identify. 

     

    If things still don't reconcile, could you please attach some screenshots of your reports: Payroll Activity, Payroll Register, and YTD Verification Report. This will shed some light on your issue and assist me in further investigation. 

Emily_B's avatar
Emily_B
Former Staff

Hi Jedwa 

 

I'm sorry that hasn't worked, but I may have a better grasp on your situation now. Let's take a step back and try to determine exactly where the discrepancy seems to originate from.

 

Could you please run your Payroll Activity summary and the Payroll Register summary, and compare those two reports. Do they match?

 

NO: This usually means that at some point a manual adjustment has been made in a specific employee's Pay History. If this is the case, you'll want to change the Pay History back to what it was and re-process any changes or adjustments you may have made through Process Payroll instead. Then, do the $0 pay to update STP.

 

YES: This generally indicates that the issue stems from ATO reporting categories that have not been assigned correctly or by payroll categories that have exempted from PAYG Withholding in error. You have mentioned that the payroll categories are not exempt, which is great. Go ahead and ensure that the ATO reporting categories are all assigned correctly (although this is likely not the issue since other employees are reconciling fine, but it can't hurt to double check). 

 

Let me know how you go with this approach.

Jedwa's avatar
Jedwa
Experienced User
4 years ago

 Hi Emily_B , My Payroll Activity Summary and Payroll Register Summary match.  The amount reported on the employees payslip is also correct and matches both the Activity Summary and Register Summary.  The only incorrect amount is on the EOFY Verification Report.

 

Thanks

  • Jedwa's avatar
    Jedwa
    Experienced User
    4 years ago

    Hi Emily_B 

     

    Have triple checked my reporting categories and everything is assigned correctly / nothing has been reassigned.  I have re-run $0 pays and it still not fixed.

     

    UPDATE:  I've logged in this morning and it has corrected itself and the YTD Verification is now correct - Phew!!  I guess it just needed time for the pays to update.  Still have no idea why as there is nothing wrong with my assigned reporting catergories & exemptions and I use the same categories for all employees.  Just glad it is fixed!

     

    Chris_Hartigan thank you for letting me be a part of your thread, I hope that this has worked for you as well!

     

     

  • Chris_Hartigan's avatar
    Chris_Hartigan
    Experienced Cover User
    4 years ago

    Jedwa 

    Glad you are sorted as indeed am I. As I said to Emily - the Gremlins have left the building - thankfully

    None of it makes the slightest bit of sense to me as the Employee involved only had 5 pays in all and none were the sum of the amount I was out in the ATO Verification Report but it is what it is - and now correct after running the Zero Pay.

    Roll on next  year I say - for many reasons.
    Stay safe & stay well
    Regards
    Chris H

  • Emily_B's avatar
    Emily_B
    Former Staff
    4 years ago

    Hello Jedwa 

     

    I understand that your Payroll Activity Summary and Payroll Register Summary match and that the discrepancy lies between these reports against the Verification Report. As previously outlined: 

     

    "This generally indicates that the issue stems from ATO reporting categories that have not been assigned correctly or by payroll categories that have exempted from PAYG Withholding in error."

     

    You mentioned that your Payroll Categories are not exempt, so that is not the issue. However, please ensure you double check the ATO reporting categories are all assigned correctly for each Payroll Category you have used this year. Something could have been mistakenly reassigned at some point without realising and it simply needs to be reapplied correctly. 

     

    To provide some context as to why this might be occurring for you: The Payroll Activity report receives data from the payruns you process through Process Payroll. The Payroll Register report receives its data from the Pay History tab in the employee card. Finally, the YTD Verification Report receives its figures from the Pay History tab as well, and then filters those numbers using the ATO Reporting Categories you have applied.

     

    So, if the Activity and Register are matching but the YTD Verification Report is still off, it indicates that although the figures are correct in the software, something is off with the filtering part of the process, which utilises the ATO Reporting Categories. Please refer to this post for further context and clarification.

    You can pinpoint which Payroll Category may be causing the issue by running an Activity Detail Report, and then double check PAYG exempt and ATO Reporting Category for that particular Payroll Category.

     

    Finally, go ahead with the $0 again. Make sure to remove the termination date of any terminated employees for this payroll year, run the $0 pay, and then re-terminate with the original date. 

     

    If you follow each of these steps and still have a discrepancy, please provide us with screenshots of the three reports (Payroll Activity, Payroll Register, and YTD Verification Report) to assist in investigating your issue further.