STP reporting last year's YTD, instead of payroll year 2020

Carmel Howard

I have processed my first payroll under STP. The report has gone across successfully to the ATO. The pay period is for 01-30 June 2019 and is paid on 03 July. The figures that have gone to ATO are YTD figures for the whole of  FY2019, even though paid date is 03 July, and therefore the first payrun of the new pay year. How can this be right?

Kris_Williams

Regardless of when the payment is made the pay period is the 2019 year, so this is not the first payment of the new financial year

Carmel Howard

That's not right. All payroll is based on payment date always been

John Graetz

Carmel Howard

Thanks. John. This has got me stumped with no Reckon phone support available today. That's nuts

Joseph Li

I agree with Critters222. That is how the software works, pay periods. Before STP it is up to the employer to use pay period or payment date.

glendaveale

Not correct. All reports run on pay date not pay period date.

Linda ABC

Kris_Williams

I have been doing payroll since back in the day we drew cheques for them, and the week end date always determined the year because you couldn’t always pay the wages on the last day. Because of this since using Reckon payroll I have always made the payment date the same as the last day of the pay period even if it didn’t get paid till the following week. I accept this is not how Reckon does it but it’s the way I have done it for over 20 years

Linda ABC

As per this ATO link - https://www.ato.gov.au/business/payg-withholding/payg-payment-summaries/#Endoffinancialyearpaymentst...  employees income is determined by the year in which they receive their pay... I have only been doing payroll for about 25 years and it hasnt ever really been about how the software does it, but what the ATO requires and making the software report as required by the ATO.

Joseph Li

The tax law says employee derives income when received. I am a tax agent. In practice the ATO looks at the payment summary issued by the employer. STP does away with employer issued payment summary. So it makes sense to use STP softwares correctly. Most of the time the payment date is before the pay period end date i.e. receives the monthly pay around middle of the month.

John Graetz

Thank you for the confirmation of what I have been saying over the past two days, Linda and also for providing the ATO link above which is quite specific in what it says has to apply i.e. the date on which the employee actually receives the money, determines which year the payment is recorded under.  It has been drawing attention to this over many years and I have been doing payroll for more than 27 years.
John L G 

Carmel Howard

Thanks everyone for your help. I knew this was wrong but with no opportunity to talk with Reckon support yesterday, I was stumped (and very annoyed). I did the age-old solution of starting over and re-doing the pay run and STP process. And guess what? All good. Whether I did something wrong the first time, or the gremlins did, I will never know. My point is that there was great information posted here, and some not so great. For me, you could be really led astray if someone posting a solution here doesn't quite get it right. Reckon support gets no points from me. Rant for the day. Sincere thanks for those of you who replied.