End of financial year report does not reconcile with monthly pay run data

DanDan Member Posts: 3
edited September 8 in Single Touch Payroll App
I have used the free STP app to report monthly pay runs for my business (1 employee). The individual monthly pay runs reconcile with my monthly STP data on the ATO website.

However, when I use the app to create an 'End of financial year (FY19/20) report', the automatically calculated totals are higher than the sum of the individual monthly pay runs. More specifically, the automatic calculation seems to have double counted either my October 2019 pay run or my November 2019 pay run. How can this be?

And, more importantly, how can this be fixed so I can submit an accurate EOFY report?

I have seen some commentary suggested an adjustment be created. Is the adjustment submitted to the ATO? If so, it seems like creating an 'adjustment' as a work around to fix the incorrect EOFY report will mean that the data submitted to the ATO is no longer correct.
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Comments

  • SteveSteve Member Posts: 9
    edited September 8
    I have exactly the same problem , this need to be fixed by the app supplier
  • SteveSteve Member Posts: 9
    edited July 2
    My pay runs are correct but the app for the end of the financial year summary is too high it seems to be adding one pay run twice.
  • RavRav Administrator Posts: 10,906 Administrator
    edited July 7
    Hi Dan,
    With the STP app, the YTD figures shown in the 'Pay Summary' section are an accumulation of ALL submissions sent ie. Success, Error & Pending status along with any YTD pay that was entered for the employee when you initially set them up. It does not however show a 'live' balance that is sitting with the ATO. Were any of your submissions along the way declined?

    As you've mentioned the 1.12.9 update for the STP app a new EOFY Finalisation feature has been introduced. The figures shown in the EOFY 2019/20 report will be the final figures sent to the ATO and will overwrite balances sent prior throughout the year. So in essence, you just need to ensure the totals that are shown in the EOFY Finalisation Report in the app are correct prior to sending through the finalisation and this will be your FINAL and only totals sent for each employee.

    To amend those figures, you need to create an adjustment in the app (Pay Run screen > New Adjustment) and enter the total you are adjusting by eg. Employee A shows $50000.00 gross pay whereas in reality it should be $30000.00, then your adjustment will be for -$20000.00 gross pay for this employee.

    I'll add a link below to our End of Financial Year Finalisation guide -
    HELP GUIDE: End of Financial Year Finalisation with the STP Mobile App
  • SteveSteve Member Posts: 9
    edited June 30
    Hi all my paytuns are correct but my end of financial year summary is adding one pay run twice hence the incorrect amount in the summary , what do we do to fix problem.
  • Vincent GulliverVincent Gulliver Member Posts: 13
    edited July 1
    Mine are the same all submitted, all marked as Done. It seems to be including the payroll run twice for July 2019. No adjustments have been made to any month nor are any required. The individual pay runs are all correct.

  • DanDan Member Posts: 3
    edited June 30
    Rav - thank you for your comment. To confirm, if I create an adjustment in the app will this simply adjust the totals in the EOFY? That is, the adjustment itself is not submitted to the ATO, rather the adjustment is only stored within the app and enables a correct figure to be produced in the EOFY report. This EOFY report is then submitted to the ATO (with correct totals).

    Can you confirm if my understanding above is correct?

    Thanks.
  • Vincent GulliverVincent Gulliver Member Posts: 13
    edited June 30
    Mine are the same all submitted, all marked as Done. It seems to be including the payroll run twice for July 2019. No adjustments have been made to any month nor are any required. The individual pay runs are all correct.
  • Vincent GulliverVincent Gulliver Member Posts: 13
    edited June 30
    Also noting - There is no adjustment I can make as the individual monthly payroll runs are all correct. I am also on version 1.12.9 of the App
  • SteveSteve Member Posts: 9
    edited June 30
    Yes that is the same payrun as mine that is going through twice
  • SteveSteve Member Posts: 9
    edited June 30
    Yes  I have the latest version as well and all my monthly payruns are correct just the final summary is incorrect .It has put through the july payrun twice
  • RavRav Administrator Posts: 10,906 Administrator
    edited June 30
    Hi Dan,
    To confirm the initial adjustment that you make to correct the figures in the app will also go to the ATO and change the figures they have.
    However, once the balances in the app are correct, you then send through the EOFY Finalisation this will then go through to the ATO and OVERWRITE the figures they have ie. from your previous submissions & adjustments sent previous to that point. 

    So.. long story short. As long as the balances for each of your employees are correct in the EOFY Report in the app, THAT will be full & final figures sent to the ATO which will overrule everything that came before it.
  • RavRav Administrator Posts: 10,906 Administrator
    edited June 30
    Hi Vincent,
    Did you enter a YTD balance for your employee(s), when you first set them up?
    The Pay Summary section in the app will accumulate YTD entered+the figures from all submissions (regardless of status).

    Either way, the aim here is to ensure the balances for each of your employees is correct in the EOFY Report in the app because that will be the full & final figure that will be sent to the ATO ie. overruling all balances from previous submissions/adjustments.
  • DanDan Member Posts: 3
    edited June 30
    Thank you for clarifying.
  • Vincent GulliverVincent Gulliver Member Posts: 13
    edited June 30
    Firstly thanks for responding :-) No I did not enter a YTD balance - I did not know that is possible. The only values entered are in the payroll runs. I am IT project manager - I run teams that implement and test these type of systems. The EOFY report seems to be double counting the July 2019 payrun for some reason.
  • Vincent GulliverVincent Gulliver Member Posts: 13
    edited June 30
    Hi Rav I have only one employee, me. Each payroll run was correctly entered, submitted and marked as Done. The EOFY seems to be including the July 2019 payroll run twice. Why do I say that?  Because that is the amount by which the report is incorrect for the total gross pay, total tax withheld and total superannuation. I can not submit an incorrect report. There is no adjustment I can make.
  • Vincent GulliverVincent Gulliver Member Posts: 13
    edited June 30
    I notice  for the July 2019 payroll  that I submitted it on the 12 Aug 2019 and it was not approved by the ATO until 22 Sep 2019
  • Jennifer CourtenayJennifer Courtenay Member Posts: 10
    edited June 30
    But how do you put in a negative adjustment? The app won’t accept it
  • RavRav Administrator Posts: 10,906 Administrator
    edited June 30
    Vincent,
    I can't say what has happened to your individual case, simply because I don't know nor have any visibility on your submissions.
    The app asks you to enter a YTD balance if applicable to the employee when you first create them in the app initially.

    The key aspect here which you need to come to terms with is, you need to ensure that the figures in the EOFY report are accurate when it comes to sending through the finalisation because it will then overwrite whatever is currently sitting with the ATO ie. it will be correct figures provided that you adjust them accordingly so the app reflects  them. To do so an adjustment is required and you can send one in order to do so.

    I'm not asking you to send through an incorrect report, I'm simply stating what is required in order to correct your figures in the app to finalise your reporting.

    I'm going to link this article again below because I feel it probably explains the process better than what I'm trying to outline -
    HELP GUIDE: End of Financial Year Finalisation with the STP Mobile App
  • SteveSteve Member Posts: 9
    edited June 30
    I,m not sure how this works because if you submitt an adjustment to payroll runs that are already correct wont this create an issue with the ATO
  • RavRav Administrator Posts: 10,906 Administrator
    edited June 30
    Hi Steve, see my earlier reply to Dan in this thread HERE who had a similar question.
  • Vincent GulliverVincent Gulliver Member Posts: 13
    edited July 2
    Thanks Rav

    It's not my individual case, it seems everyone who is complaining is saying it is double counting some of their months. The report is faulty, plain as day.

    Given my experience, as I say I am an IT project manager, I would say its using the dates incorrectly because although the July payroll run was submitted in August it was not approved by the ATO until Sep. I suspect if you checked the report this will be the cause.

    Let me confirm what you want me to do.

    1. My 12 payroll runs have all been submitted and approved by the ATO. All the payroll runs are absolutely correct. All approved. None pending. No errors.

    2. Note: None of my payroll runs are the same

    3. When I run the EOFY report it incorrectly calculates the total salary, total tax and total superannuation. The amount that it is wrong by is twice the July pay run (which I can determine because of point 2)

    4. Because your EOFY is incorrect you want me to make an false adjustment to a correct payroll run to offset the incorrect calculation by the EOFY report

    5. You believe this to be ok because you believe the ATO do not use the individual payroll runs and are only concerned with the totals in the EOFY report.

    PLEASE CONFIRM

    For the record in all of my professional working IT experience with hundreds and hundreds of reports over 30 years. Never would this be acceptable. You need to get the report fixed. This is also disappointing because until now I have liked using the STP payroll software.

    Regards
    Vincent
  • Eric MurphyEric Murphy Member Posts: 121
    edited June 30
    The app isn't double counting July, it isn't in my case so I wouldn't make that assertion for the masses Vincent.
    The way the app counts pay summary figures though, is terrible and incredibly confusing. You really haven't made it easy on yourselves Reckon.

    There is also literally no way to check what YTD pay I entered for my employees when I set up the app. Vincent, I have a suspicion that is where your mysterious figure is appearing from in the app like it was for me among other issues.
  • Vincent GulliverVincent Gulliver Member Posts: 13
    edited June 30
    Hi Eric

    I never asserted it was just July in my comment above. Please re-read. In fact there are a couple of other complaints about doubling of particular months.

    There can be multiple issues with a single report.

    On the YTD issue: I did not enter any values for YTD pay nor any other values for anything other than for the payroll runs. Not having the YTD pay visible definitely does not help. But I never entered a value for it.

    For the defect I have identified. The reason I pinpointed July in my instance is because all 12 of my payroll runs have different values. The report is exactly wrong by twice the July payroll amounts. I notice for my July payroll run that its was submitted in August but approved in Sep. Whereas all my other months were approved in the same month and usually the same day. I suspect for this issue it is double counting because of this difference in months.

    I am going contact the ATO to verify that they only use the totals and not the individual months submitted before I make the adjustment that Rav is suggesting.

  • RavRav Administrator Posts: 10,906 Administrator
    edited July 2
    Vincent,
    As part of the Single Touch Payroll reporting system, you must finalise each employees payrun data with the ATO at the end of each financial year - https://www.ato.gov.au/Business/Single-Touch-Payroll/In-detail/Single-Touch-Payroll-employer-reporting-guidelines/?anchor=FinalisingyourSingleTouchPayrollreporti1#FinalisingyourSingleTouchPayrollreporti1)
    This informs the ATO that you are finished your payroll for the year, the employees numbers are finalized and they can now prefill this data into income tax returns. If you do not do this process, employees will not be able to prefill data into their income tax returns. As you are reporting finalized numbers to the ATO via what is termed an 'update event' you also have the opportunity to amend any figures that may be incorrect.

    As you can see on this info from the ATO - https://www.ato.gov.au/Business/Single-Touch-Payroll/In-detail/Single-Touch-Payroll-employer-reporting-guidelines/?anchor=FinalisingyourSingleTouchPayrollreporti1#FinalisingyourSingleTouchPayrollreporti1 - amendments can be done as part of the finalise process.
    If you make a correction as part of the EOFY report process, these are the numbers the ATO will use to prefill employee tax returns. Employee data is reported to the ATO as a Year to Date amount in every STP submission with the previous data updated to reflect the new data, even if that means the previous number was higher due to, for example, an overpayment to an employee.

    If your numbers are correct and do not need amending, you still need to finalise your employees numbers with the EOFY report as this will set the employees to finalised with the ATO and employee data can then be prefilled into returns. This is a mandatory process, see this page for more info - https://www.ato.gov.au/Business/Single-Touch-Payroll/In-detail/Single-Touch-Payroll-employer-reporting-guidelines/?anchor=FinalisingyourSingleTouchPayrollreporti1#FinalisingyourSingleTouchPayrollreporti1

    I would also recommend that you have a chat with the ATO if you still have concerns around the EOFY process.
  • Vincent GulliverVincent Gulliver Member Posts: 13
    edited July 2
    Hi Rav
    I contacted the ATO. I spoke to two different people. They seemed to think they do check the FY submissions against the monthly submissions, BUT if there is a difference the EOFY report takes precedence. I asked what the point of checking the monthly submissions total was then and they did not know.
    SO - As per your directions/instructions I have fudged the figures using an -ve adjustment and submitted the EOFY report with the correct values for the Financial Year 2019-20.
    This is a deeply unsatisfactory work around, when I have correctly submitted all the data throughout the year. The report clearly has a defect where it is double counting some months under particular circumstances and/or the YTD figure has a hidden value. It would provide more confidence to users and I personally would be more understanding if you could admit that there is a defect with the report and commit to investigating and resolving.
    Regards
    Vincent
  • Anissa JordinAnissa Jordin Member Posts: 1
    edited July 1
    Hi, I have the exact same issue as you Vincent. My EOFY report has doubled up the 1st payrun in July. (And yes my weekly payroll is all different values, so I can ascertain which week has been doubled up) It seems highly doubtful that many users have somehow made the same error. Reckon please look into this matter urgently
  • SteveSteve Member Posts: 9
    edited July 1
    Vincent,
    What date did you use for the adjustment  , did you use the july pay run date or just todays date.
  • RavRav Administrator Posts: 10,906 Administrator
    edited July 1
    Anissa,
    Have you had a look at the info in my responses earlier in this thread? Have you also checked out the EOFY process in the help article linked above?
  • SteveSteve Member Posts: 9
    edited July 1
    Anissa I had exactly the same pay run as you , my july pay run seems to have gone in twice.
  • RavRav Administrator Posts: 10,906 Administrator
    edited July 1
    Steve, if you are adjusting figures for the previous financial year, you need to use a date from the previous year NOT a date in the current (new) financial year.
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