Payrun adjustment incorrectly recorded in ATO Income Statement

swakhlu01 .

@Rav It is that time of the year when excitement and enthusiasm starts to build.

I noticed a previous month's payrun for an employee was showing an incorrect amount. However, the adjustment payrun of that particular month sent yesterday seems to have changed the reported period dates and YTD figures of the employees 2021-22 Income statement in ATO ignoring the subsequent months of payruns. The period now shows 1st July to the month of the payrun adjusted instead of the latest payrun period.

EOFY Payrun for YTD amounts shows the correct figures in Payroll App. Does this mean all the subsequent payruns will have to be resubmitted as Payrun adjustments to show the correct ATO Income statement figures?

Rav

You're certainly right @swakhlu01 ., its almost 'that time' of year, how time flies 😄😄. Massive thanks to you as always for being incredibly supportive and sharing your knowledge with fellow Payroll App users on the Community.

In regard to your query, I think I might be misunderstanding it at the moment but just to clarify, do you mean the original pay date/pay period that the pay run had has changed after your amendment to it?

When you amended this particular pay run were any changes to the pay date and/or pay period made as well? Or only the specific balances?

I've made a quick screen recording below of which hopefully illustrates what I mean when I refer to changing the dates during an adjustment.

swakhlu01 .

@Rav Sorry if I was not clearer earlier.

There was no change to pay period and pay date for the Payrun. Only the superannuation rate applied needed a change. The STP tab shows the Update was successful today and has reference to the correct pay date for which the adjustment was made. Under Payrun tab I get the correct dates of the payrun and the pay period (same as what these were before) along with the amended superannuation amount.

I have now fixed the issue with the employee income statement by resubmitting the last payrun as adjustment but with no changes. The STP reported this as an update event and the YTD amounts in employee income statement are updated. (same as the EOFY Payrun amounts).

The issue is Payroll app must be submitting YTD figures to ATO for each Payrun reported and not the actual amounts that represent the particular Payrun. This means any Payrun adjustments made reports a YTD payment upto the period the Payrun represents This is problematic.

Rav

When it comes to STP, it only reports on a Year to Date basis only which is a requirement by the ATO across the board ie. not just the Payroll App but all software service providers.

The Pay Summary within the app on the other hand, will always update progressively based on the balances of any payruns and adjustments that have been marked as paid + any balances in the 'Initial YTD' tab.

Sorry mate, I think I must be a bit slow today. Can you break down for me where the actual problem/disconnect is in the app ie. what you're inputting vs what you expect to see and I'll do some testing as well.

swakhlu01 .

@Rav Example of Income statement , Payruns- old, Payrun-update, Income statement changed.

A) Income Statement

Status - YTD

Reporting period - 1/7/21 to 31/05/22

Reporting Date - 29/5/22

Gross Payment reported - $20000

B) Payrun - 29/03/22

Payrun period - 1/03/22 - 31/03/22

Gross earnings reported - $5000

C) Payrun - 29/4/22

Payrun Period - 1/4/22 - 30/4/22

Gross earnings reported - $2000

D) Payrun 30/5/22

Payrun Period - 1/5/22 - 31/5/22

Gross earnings reported - $2000

E) Payrun update - 17/6/22 for Payrun of March 29/3/22

Gross earnings - changed to $3000

STP update- success .

F) Income statement changed

Status - YTD

Reporting Date - 17/6/22

Reporting Period - 1/7/21 to 29/3/22 😂

Gross Earnings reported - $14000😂

Analysis - The YTD of Income Statement has gone back to the value as at 29 March 22 and reduced the gross by $6000 - (May $2000, Apr $2000 and March adj $2000) .

Issue was fixed to the expected YTD value at 30/5/22 by resubmission of Payrun (D) of 30/5/22 as Adjustment Payrun but no change to amounts.

swakhlu01 .

@Rav just checking this has not skipped your busy radar. I am about to submit June Payrun and want to be sure there is not issues in the app being highllighted by my experience as above.

Rav

Sorry for missing your earlier reply mate.

To be honest, I think you'll be fine to proceed at this point. We don't have a great deal of visibility when it comes to how data is presented and/or updated in the income statement end by the ATO but in saying that, if the balances showing in your app Pay Summary and EOFY are correct then that's what is important from our end as the EOFY submission you send through will overwrite any and all balances to this point in any case.