Copy From Previous Payrun Shows Different Figures

JennyGSDIT

Hi,

I have a full time employee and a part time employee. Each month the pays are the same for FY 2021/2022, and I use copy previous payrun each time.

I discovered recently, when press Resubmit to ATO, July 2021 payrun shows the correct gross figure, but when doing the same for months between Aug 2021 to Jun 2022, the gross figures only shows the full time employee gross.

The reason I am trying to Resubmit to ATO, is that EOFY gross for the full time employee is incorrect, it is missing one month. I am trying to figure out where did I miss.

How can I fix the full time employee EOFY gross figure?

Why would Resubmit to ATO shows different figures for identical payruns in different months?

Thank you in advance.

Rav

Hi @JennyGSDIT

The 'Resubmit to the ATO' button will appear on an existing pay run that you've already created and its usually only used when you make an edit to that pay run and need to send through the amended figures as an adjustment.

If you open an End of Financial Year finalisation for 2021/22 in the Payroll App and review the employee balances there it will show the total balances of all paid pay runs for your employees. You've mentioned that the gross pay is incorrect, did you confirm this via the EOFY finalisation and/or the Pay Summary screen?

Is the gross pay under or over what you expect it to be in reality?

JennyGSDIT

Hi Rav,

Thanks for the quick reply.

I didn't go through with Resubmit to ATO, because I don't know what to adjust.

The EOFY for 2021/22 figure is from Employee (full time one) - Pay Summary - 2021-2022. It is under what I expect. The shortage is exactly 1 month gross of the full time employee.

How can this be when I have full 12 months payrun but the gross only shows the equivalent of 11 months?

Ah, also for the PT employee, Pay Summary 2021-2022 only shows 1 month gross. I reported all 12 months.

Rav

Thanks for getting back to me @JennyGSDIT

Ok my next suggestion is to take a look at the pay items you've been using in your pay runs. Specifically, have you used any custom earnings items in any of the pay runs for these employees and if so, have you created that custom item as non-tax applicable in its setup?

The reason I ask is, gross earnings will only be included in the Pay Summary/EOFY finalisation if they are tax applicable as that is part of the STP requirements.

You can verify this by going into Settings ➡️ Earning items ➡️ Select any custom earnings item you have created (and used in pay runs) from the list ➡️ The setup of the item will be displayed. Check whether the 'tax applicable' option has been ticked (and if a calculation method selected if applicable).

JennyGSDIT

Hi @Rav,

The PT employee uses a custom earning item, and it is Tax free - it is. So it explains why PT employee EOFY Pay Summary doesn't count Aug 21 - Jun 22, but I don't know why July 2021 (which I cannot remember whether it was carried over from STP, or created new from Payroll App).

The FT employee uses Ordinary (the default earning item), Tax Applicable is "Gross Payments". Do you know why this employee's Pay Summary only shows 11 months gross figure? Thank you.

Rav

In the case of the FT employee, and just double checking, have ALL of their pay runs been created with that default Ordinary earnings item? I'm assuming so but just checking if perhaps there may have been one that used a different earnings item in error.

Secondly, the date paid is the determining factor when it comes to where a pay run will fall so just checking whether perhaps there may have been a pay run created with a pay date that falls outside of the 2021/22 financial year?

Seperately from the above, I'll just outline a quick overview of the next step so that you can make the necessary correction. I think the easiest way for you to get things up to date is to add the missing earnings amount to the employee's initial YTD in their profile.

Ensure that you use a tax applicable earnings item such as the default Ordinary earnings item and date it in the appropriate financial year ie 2021/22. If you have existing balances showing in the initial YTD section ensure that you ADD the missing earnings balance to any earnings that have already have in the initial YTD section.

I've created a generic screen recording below which outlines how to access the initial YTD area and enter balances when there is nothing listed, but its just an example and yours will likely look different.

After you've updated this, create a new end of financial year finalisation and it will show the updated balances.

JennyGSDIT

Hi @Rav ,

I did make a mistake for Jun 2022, marked payday as 29th Aug instead of 28th Jun 2022. Immediately after submit, I realised the mistake, and used correct pay date - submit as adjustment on the same day. I am not sure if this was done correctly.

I just did the same step again for June 2022.

Thanks for sharing the steps on correction in using initial YTD. If I follow the steps, and the correction is also taken by ATO, would it cause problems by pushing the EOFY figure to more than expected?

Sorry for all these questions. Thanks in advance.

Rav

Gotcha, that explains it. You did everything right its just that unfortunately at the moment the Payroll App is having trouble 'moving' pay run balances from one financial year to another when the pay date is edited after the pay run has been marked as paid. This is something I've got across to the app team to do a bit of work on.

If I follow the steps, and the correction is also taken by ATO, would it cause problems by pushing the EOFY figure to more than expected

No it shouldn't but after you do add in the missing amount you'll be able to review the balances in EoFY finalisation prior to sending through. Also, an EoFY finalisation will overwrite any and all balances that are currently sitting with the ATO to this point for the respective financial year.

JennyGSDIT

Hi @Rav ,

I see! I picked the wrong month to make the pay day mistake!

After I resubmitted June's payrun again using "change pay date", now I can see the FT employee's EOFY figures are corrected.

Thank you for your excellent troubleshooting skill, knowledge and patience. Much appreciated!