Pay runs and EOFY

System

This discussion was created from comments split from: EOFY Issue.

Karen Purssell

HI Rav

I have the same problem as AnnieRob above.

The original pay run for the period 1/4/22 to 30/6/22 was entered as date paid 20/7/22. I tried to do an adjustment to change it to paid 30/6/22 but it is still showing up in the 2022/2023 financial year. Can you please advise the correct way to fix this? When you look at the payruns the adjusted one shows the date paid at 30/6/22 with no figures and the original one is the same.

Thanks, Karen

Rav

Hi @Karen Purssell

I tried to do an adjustment to change it to paid 30/6/22 but it is still showing up in the 2022/2023 financial year.

Can you let me know how you adjusted this pay run and also, where you are seeing the balance still showing in the 2022/23 period? Is it in the Pay Summary within the employee profile OR the EOFY submission (or both)?

Karen Purssell

Hi Rav

Thanks for your reply.

I can't quite remember how I did this adjustment (sorry). It was only this morning and it seemed logical at the time.

The balance is showing in the employee summary as 2022/2023 and also in the EOFY submission. I have checked from the ATO end and it is showing as 2022/2023 there as well, instead of all in 2021/2022.

There is only one employee.

Karen

Rav

@Karen Purssell

Right ok. What I'd suggest you do is send a zero balance STP submission to bring all of the 2022/23 balances back to zero.

You can do this by creating a 2022/23 EOFY finalisation and switch on the 'Set all values to $0.00' toggle and send that through. This will update all STP balances on the ATO's end to zero. I've attached an old screen recording I made showing this however it shows me doing it for the 2020/21 financial year but in your case you'll need to do so for the 2022/23 financial year.

Once that is done, delete the original pay run you created and it will clear the 2022/23 balances from your app as well. Don't delete the zero finalisation as I'd recommend you keep that as a record.

Recreate the pay run(s) using the correct pay date and send through the submissions.

Hopefully that makes sense but let me know if you have any questions.

Karen Purssell

Hi again

Thanks again for being so quick to reply.

Thanks for the instructions and I will pass onto my client to do now. I'll get back to you if we have any issues.

Karen

Karen Purssell

Hello Rav

My client has done a 2022/2023 EOFY finalisation and had marked all values zero and that has worked.

But now we can't get the payrun to work in the 2021/2023 financial year.

The pay was entered in a pay run dated 30 June 2022 for the period 1/4 to 30/6/22. It is showing in the pay run list. The STP detail shows the pay run on 30/6/22 and the submission a success on 22/7/22.

When I look at the ATO at the employee end the income statements show the not tax ready figures to include all pay runs to 31/3/22 for 2021/2022 and tax ready zero figures for 2022/2023. From the employer end I can see a pay event effective date 30/6/22 with the correct figures in gross payments and PAYGW but these figures are not showing up on the employee end.

Can you please offer some advice?

Karen

Rav

Hi Karen,

While we don't have any visibility on what's happening on the ATO site end of things, can I just confirm whether your client created a new EOFY finalisation for the 2021/22 financial year after they performed the zero out submission for 2022/23?

If not, they'll need to do so in order for the 2021/22 to be switched to Tax Ready status.

Karen Purssell

Hi Rav

No they have not done a new EOFY finalisation for the 2021/2022 financial year because the figures do not seem to be correct.

Karen

Rav

Ok sorry, I might be misunderstanding.

Lets focus on the balances in the app itself only for now.

After they performed the zero out submission and then created the pay run with the correct pay date (30 June) the balances in the app for 2021/22 should now be correct. Is that right?

To verify this, they can open a new EOFY finalisation for 2021/22 and the balances should now be correct to what they should reflect in reality. If that is the case then they should send through that EOFY finalisation.

The reason I say that is, an EOFY finalisation submission will overwrite any and all balances that the ATO have up to this point and be updated with the balances from the EOFY submission.

Karen Purssell

Hi again Rav

I will check out what the balances are if he opens a new EOFY finalisation for 2021/22 and get back to you.

What you said in you third sentence is correct. This is what has been done to date.

Doing what you suggest was my first instinct on Friday but my client was worried about doing it.

I'll let you know how we go.

Thanks again Karen.

Karen Purssell

Hi Rav

My client has sent me some screenshots and the totals when looking at the EOFY report FY 21/22 are only including up the the figures to quarter 3. So the last pay entered at 30 June 2022 is not being included in the EOFY report figures.

The EOFY report for FY 22/23 is still showing the figures from the pay that was originally entered for the June quarter as being paid on 20/7 but we have changed those figures to zero and have submitted that to the ATO.

Please advise.

Karen

Rav

Hi Karen,

My client has sent me some screenshots and the totals when looking at the EOFY report FY 21/22 are only including up the the figures to quarter 3. So the last pay entered at 30 June 2022 is not being included in the EOFY report figures.

If the pay run that was entered with the pay date 30 June isn't appearing in the EOFY submission then the next thing I'd suggest is to look at what earnings item has been used in the pay run.

Specifically whether or not that earnings item is a tax applicable one AND more importantly has been setup as such in its settings. Only pay items that are tax applicable will appear in the EOFY finalisation for submission to the ATO as they part of STP requirements.

What I'd recommend you or the client do is go into the pay run and look at what earnings item has been used in that pay run. Then go into Settings ➡️ Earnings items ➡️ Select that earnings item from the list and check whether its been setup to be tax applicable.

The EOFY report for FY 22/23 is still showing the figures from the pay that was originally entered for the June quarter as being paid on 20/7 but we have changed those figures to zero and have submitted that to the ATO.

In regard to the above, I don't think the client has completed the step which I've copied and pasted below from my earlier reply further up above.

Once that is done, delete the original pay run you created and it will clear the 2022/23 balances from your app as well. Don't delete the zero finalisation as I'd recommend you keep that as a record.

Karen Purssell

Hi again

Okay we will check those things out and report back.

Question - how do you delete a pay run?

Thanks, Karen

Rav

Go into the pay run itself and switch it back to draft. Once that is done tap on the menu button in the top right corner you'll see the option to delete the pay run.

Karen Purssell

Hi again Rav

Excellent thanks for that.

Do you think the trouble we are having might be to do with the STP 2 upgrade? Not sure what the status of that is.

Rav

No it won't be related. All Reckon payroll software including the Payroll App is currently deferred from STP Phase 2 requirements (info on that here)

Karen Purssell

Okay it was just a thought. We are entering it the same as previous but will check those things out.

Karen

Karen Purssell

Rav this is what is in settings - is this correct?

Rav

@Karen Purssell

The above pay item is the normal/default ordinary earnings pay item. Is that what has been used in the pay run dated 30 June 2022?

Was the pay run that was created with the pay date 30 June created as a NEW pay run as I outlined in my previous instructions (here) OR was the original pay run that was dated in July amended?

If it was created as a new pay run has it been marked as paid in the app?

Karen Purssell

Hi Rav

Yes the ordinary earnings was used. It has been entered as a new pay run now as the previous ones have been changed to draft and have been deleted.

How do you mark a pay run as paid in the app?

it looks like the figures are correct now showing in the STP EOFY 21/22 so I have advised to do the declaration and should be correct overnight.

Karen

Rav

Good stuff Karen, sounds like you've solved it 👍

Karen Purssell

With all of your great help Rav! Thanks so much.