STP submissions rejected by ATO

Peter_10767167

Hi Rav, I have just realised that all my STP submissions for 21/22 were rejected with the comment (see

STP.jpg

attached)

I have a pty ltd company of which I'm the only employee. So I've entered my super as Super Salary Sacrifice an have zero under Super Guarantee . Has this caused problems?

How do I fix the error?

Thank you!

swakhlu01 .

It is important to know that in STP reporting you must show some earnings before you apply superannuation etc. The error that you have received for your STP submissions is showing that your nett income became negative if you had zero earnings and yet you filled up the Salary sacrifice amount.

At this stage you have two options a) fill up a manual PAYG form for FY 2021/22 considering you are the sole employee and indvidual of interest in the business OR b) pursue with the Payrun App with a bit of pain to achieve the outcome.

If you wish to go the Payrun app option you will have to tinker with the Initial YTD Employee view for 2021/22 and add the amounts for various fields for the full financial year as if you were entering the figures on 30th June 2021. Once you save this check the EOFY figure to make sure the values are correct.

You may have to do a single Payrun dated 30th June 2022 as a NIL amount payrun. This will make sure the full YTD amounts are reported to ATO. Then submit the EOFY 2021/22 Payrun to make sure the Income Statement in ATO is finalised and ready.

Total earnings - should be same as the Salary sacrifice amount if that is what you are reporting

Superguarantee - should be 10% of the total earnings

Salary sacrifice super - should be Total earnings less the superguarantee amount

Deductions - should be the total salary sacrifce super amount

Tax - zero.

https://help.reckon.com/article/uz5x44p19d-reckon-payroll-app-adding-employees#initial_ytd

This can be a bit complex but I am sure someone on this community page may have a better suggestion.

Rav

Hi Peter,

Can you step me through the exact process you go through when you create a pay run. Specifically, whether you've been using a custom earnings item to not generate super on the earnings etc.

If you check the employee pay summary section, are the earnings/super/tax etc showing up correctly there? Note: You will not see RESC components such as salary sacrifice on the Pay Summary or EOFY finalisation screens but they ARE recorded by the app.

Peter_10767167

Hi Rav,

I add a new pay run

I select the pay date

I select the pay period (the whole month-I pay monthly)

Select myself as the employee and have ticked copy from previous pay run

Click Create

(I dont usually select anything for the pay schedule, but doing one now it shows as Ordinary. I dont know what i selected the first time I did it, and I may not have always copied from previous)

Then I edit the Pay run , change the Earnings figure, add the super under Salary sacrifice for super, (Super Guarantee is left at zero), change my deductions and set a Tax witheld figure.

click Done

If I then scroll down to the Pay Run Summary,

It has Pay Date, Pay period, Gross earnings, tax witheld and Net Pay.

Then has Mark as Paid button below it

If I go to the Pay Summary under the employee it is NOT recording Total Super, Total allowances or Total Deductions, just Total Gross and Total Tax (which look pretty much right)

For 2021-22 it shows Total Superannuation as $-1000 (which is where the ATO error is obviously coming from!) $0 for Deductions too (I have deductions each month) No idea where that -1000 came from !

Rav

Thanks Peter, it sounds like you've been doing everything right. Can I just double check though, it sounds like you're using the default ordinary earnings item and this item usually calculates super guarantee on earnings. Have you customised this to not calculate super in the item setup setup?

Also, if you go back to the first pay run submission that was rejected and open that pay run itself, is it different in any way in regard to the earnings, super, salary sacrifice etc when compared to the more recent pay runs?

Just trying to determine where things have gone astray.

Peter_10767167

Hi Rav,

I dont think I changed anything, but that was 12 mths ago !

The first rejected STP was the first month of the financial year. I have put it back to draft to edit. I checked Ordinary had Include calculations in Salary Sacrifice for Super ticked. I've changed it now to use the Monthly category which had nothing ticked for Super calc and ticked both options in it to see if that fixed the issue.

I saved the payrun (clicked Done) then it came up with an error in Payruns..Error Loading Payruns -We were unable to load Payruns, try again. Ive logged out and back in, but same error, now no payruns are shown :-(

Rav

Sorry Peter 😔😕, that error is something unrelated to you/your account. We're working through a wider issue at the moment that is affecting the app's ability to load pay runs (info on that here). I'll let you know as soon as that is solved.

Peter_10767167

Thanks Rav! Appreciate your support !!

Rav

Ok back again, sorry about that Peter.

That problem with the pay runs from loading correctly is now solved. If you close your app down in full for about 30 seconds and then relaunch it should be back to normal. Give it another go when you have a chance and let me know if all ok.

Peter_10767167

Hi Rav,

I'm back in now. Have submitted the first month again, but looking at the Pay Summary for 21-22 it still has -1000 for super

swakhlu01 .

You cannot select 0 for super guarantee. Even if you salary sacrifice superannuation, the 10% (FY2021/22) rate must be used as proportion of Earnings. Refer my previous post on how to structure your payrun.

Peter_10767167

Thanks Swakhlu01, I wondered if that was the case. I tried a different category(Monthly) under earnings, ticked both boxes for the super calc, but nothing was generated under super guarantee after the earnings were entered. I'll recheck your post

Peter_10767167

Ok, I have worked out how to make the super guarantee part appear again. I created a new earnings item with both Super tick boxes. To get rid of the -$1000 in the super, should I do a change to the YTD and add $1000?

Rav

Theoretically yes you could so that it evens out the total back to 0.00. I still find it a bit strange though in how that negative figure came about in the first place 🤔🤔 but without being able to access your account itself its hard to say.

Go ahead and add the $1000 to the initial YTD for the 2021/22 FY and then create a NEW End of Financial Year finalisation and just review if the balances are correct. Would be keen to hear how you go.