ATO Allocation of Superannuation after forwarding payrun on Payroll App

faigey

I have forwarded a payrun to ATO using Payroll App.

The intention for the payrun is (a) Net Pay = 0 (b) Tax = 0 (c) Super guarantee = $627.00

(d) salary sacrifice = $6270 . So that a total of $627 + $6270 = $6897 was paid into my superfund and $0 paid out as pay.

Attached are screenshots #1and #2 illustrating how the data on Payroll App was input.

ATO when receiving this pay run - do indeed correctly allocate $0 to pay.

However ATO allocate $6897 entirely to Super guarantee and $0 to salary sacrifice.

What am I doing wrong? OR How should this data be entered into Payroll APP??

Payrun Screenshot 1.pdf

Payrun Screenshot 2.pdf

swakhlu01 .

@faigey Where are you checking the amount ATO allocated to super guarantee?

What you have shown in screenshot 1 is correct for the intentions of your payrun. Screenshot 2 is the correct representation of what the Payroll App will report as STP when you confirm the payrun declaration. However, the employee Income Statement in ATO mygov will show the split as you have intended in ScreenShot 1. Payroll app does not show the split in the Payrun display to the best of my understanding. The field shown in the screenshot2 in my opinion is incorrectly labelled "superannuation" instead of "total superannuation".

faigey

Hi swakhlu01,

I am checking the amount ATO allocated to super guarantee by

(1) going into personal My.Gov -

(2) Your Services - ATO subsection within My.Gov

(3) Employment subsection

(4) Income statements subsection

(5) 2021-2022 employer "Income details for the current and previous year that your employer has reported through Single Touch Payroll"

(6) Employer reported super

"Employer superannuation contribution liability

Other amounts

Reportable employer super contributions 

swakhlu01 .

@faigey If the entire superannuation contribution figures are reported in the "Employer superannuation contribution liability" in the employee Incomes statement as you mention there there is a problem that Reckon will have to check.

Is the ATO statement showing the deductions correctly? I would suggest calling ATO business support line and reconfirming whether there is no issue on their side.

faigey

Hi swakhlu01

Indeed I have today contacted ATO support line and have been put through to the OTP specialist team.

The ATO confirm at their end all of the entire super contributions ie ( SGC and salary sacrifice components) are allocated to “Employer superannuation contribution liability”. They have recorded my concerns and advise me to forward an update of this pay run.

However, unless for some reason I am not entering or misunderstanding the data entry process/logic correctly , doing an update simply results in the same issue. There may be a problem with Reckon App?

I have reached a stalemate and probably will seek the professional assistance of an accountant.

swakhlu01 .

@faigey I have marked this to the attention of Reckon Community support team @Rav who may need to look into this as per your experience.

Rav

Hi @faigey

Can I just confirm a few things;

Do you have the latest version of the Payroll App installed? (currently v2.24.19)

Is this the only pay run that you've submitted that you've noticed this occur on?

More importantly, do you have access to the ATO Business Portal? If so, can I grab the ATO receipt number for this specific submission along with the ABN that you've registered to your Payroll App account. I'll make some inquiries internally about this.

faigey

Hi Rav

Confirming the version of Payroll App installed is indeed v2.24.19

This pay run dated the 240622 is the only time , that I am aware of , that it has occurred.

I do have access to the ATO Business Portal.

I am not certain as to the ATO receipt number you refer to . Notwithstanding there is a submission ID for the payrun of the 240622 and it is designated as A1E42D39-FA71-42FB-8863-173EC650E987.

The ABN registered to the payroll app is 33647209381

Rav

Thanks @faigey

Can I just clarify something that you've mentioned earlier:

The ATO confirm at their end all of the entire super contributions ie ( SGC and salary sacrifice components) are allocated to “Employer superannuation contribution liability”. They have recorded my concerns and advise me to forward an update of this pay run.

If I'm interpreting that correctly, are they saying that even though the Payroll App has sent salary sacrifice as a RESC component, they are displaying it in MyGov as part of employer super contribution rather than RESC? Was there any reasoning given for that?

faigey

The total Superannuation amount is $6897.00

The intention via Payroll App is this amount is made up (a) $627.00 employer superannuation contribution liability plus (b) $6270 salary sacrifice.

My interpretation , by entering the MyGov site and reading the section Income statements , is that the total amount of $6897.00 has been allocated under the heading "Employer reported super" - sub section "Employer superannuation contribution liability". I believe the figure of $627.00 should have been allocated here.

Further on there is a heading "other amounts" - sub section "reportable employer super contributions eg salary sacrifice". I believe the figure of $6270.00 should have been allocated here.

There was no reason given to me by ATO. They made a note of my concerns and recommended uploading an updated pay run with the appropriate data. I am reluctant to do an update. To me it seems I will simply be adding more fuel to the fire- in case somehow I am entering or perhaps my interpretation of how to enter the data is incorrect.

Rav

Yes I agree, I don't think performing any further submissions is going to do much here in terms of being different but it sounds like a pretty strange thing on the myGov/ATO end.

Leave this with me for a little bit, I've asked my Dev team to check a couple of things over just to verify that the salary sacrifice in the submission was sent as RESC component on our end as it should have (if that's possible for them to do).

I'll keep you posted.

Rav

Hi @faigey

Just getting back to you on this one. I've just got off a call with my dev team in relation to your situation, they've refreshed the data for the pay run and have verified the payload that will be sent to the ATO in the STP submission includes the RESC component where it should belong in the backend.

From here what you need to do is the following -

This particular pay run is currently in 'Draft' status in your list, if you go ahead and mark it as paid and proceed to declaration and ensure that you tick the 'Submit as an adjustment' option and send it through it should clear things up for you.

If you can please let me know how you go that'd be great.

Cheers

faigey

Hi Rav

Just letting you know that I have now submitted this pay run under the “submit as an adjustment “ option.

Hopefully this does indeed clear things up.

I will stay in touch and let you what happens.

Thanks for your assistance.

Regards

faigey

Hi Rav

I have just checked MyGov /ATO end after submitting the "adjusted" payrun.

I am very pleased to advise the issue I was having has now been rectified.

I have spent much time trying to figure this one out.

I would love to know, ie if you know, where it went wrong. Did the dev team refresh the data in some innovative way?

(a) Was it perhaps initially the way I had entered the data?

(b) Is there some glitch within the payroll app?

(c) Did ATO interpret the payrun data incorrectly?

Notwithstanding, I am grateful and appreciate your involvement .

Kind regards

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