Adjusting last FY wages

DashaC
DashaC Member Posts: 3

Does anyone have an idea how can I record payment to employee (Bonus) made in July to be reflected in FY2021?

Comments

  • Kris_Williams
    Kris_Williams Member Posts: 3,243 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert

    Before STP it could have been done as a journal, but I don’t think you can now because it actually has to be paid out in the financial year. I’ll also be interested to hear other people’s feedback

  • DashaC
    DashaC Member Posts: 3

    Thanks Kris,

    Reckon support suggested setting up YTD amounts. It helped to show the payment in FY2021 but not sure how to record the actual payment made in Jul now.

  • Kris_Williams
    Kris_Williams Member Posts: 3,243 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert

    I think you need an accountant’s advice

  • DashaC
    DashaC Member Posts: 3

    The accountant said it is possible, but he is not familiar with Reckon accounts hosted. So I am after advice from someone who knows the software.

  • Kris_Williams
    Kris_Williams Member Posts: 3,243 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert

    You could make an adjustment to the last pay, and do an update STP submission. The amount would show as an o/s cheque on the bank rec until you physically pay it. I really don’t think it’s acceptable though from a tax point of view.

  • Acctd4
    Acctd4 Accredited Partner Posts: 3,315 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert

    @DashaC What's the specific scenario that's led to this?

    Shaz Hughes Dip(Fin) ACQ NSW, MICB

    *** Reckon Accredited Partner (AP) Bookkeeper - specialising EXCLUSIVELY in Reckon Accounts / Hosted ! ***

    * Regd BAS Agent (No: 92314 015)* ICB-Certified Bookkeeper* Snr Seasonal Tax Consultant since 2003 *

    Accounted 4 Bookkeeping Services

    Ballajura, WA

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  • John Graetz
    John Graetz Member Posts: 1,650 ✭✭✭

    The ATO is adamant that any payments are reflected in the year in which the employee receives the payment. In other words, if the pay period ends on 30/6/2021 but the pay is only processed on 1/7/2021, then that payment falls into the 2021/2022 financial year.

    John L G

  • Kris_Williams
    Kris_Williams Member Posts: 3,243 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert

    That’s what I thought John but Dasha said the accountant said it could be done so I was just answering the question about how I would do it. Thanks for confirming

  • Kris_Williams
    Kris_Williams Member Posts: 3,243 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert

    John what if the wages weren’t physically paid but journalled to a drawings account, I have to do this for a number of people in their own businesses. Wages are entered normally and reported to STP but are offset not paid. Could it be done for the previous year on that case? Just curious oboist your opinion

  • John Graetz
    John Graetz Member Posts: 1,650 ✭✭✭

    Kris, I cannot give accounting advice as such. However, my personal opinion would support the notion that when you journal the transaction, the date of that journal would be the effective date of payment. That is a different scenario than actually giving somebody a cash payment. I am presuming that the date of payment in the STP file is the same date as that of the journal.

    John L G