Treatment of re-employeed employee and change of status

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JasonFrost
JasonFrost Member Posts: 3
edited January 3 in Reckon Payroll 🚀

Hi, a part-time employee resigned a few months ago and was fully paid out all entitlements. The same employee is now being re-employed but as a casual. I wanted to confirm if I should just continue to record payslips in the employees existing account in the Reckon Payroll App or should I create a new employee account (I am not sure if this is possible all info will be the same except start date and status)?

I understand the ATO utilises YTD figures so continuing to use the same employee account in the Reckon Payroll App should result in the ATO STP record reconciling with Reckon Payroll App employee record. If I create a new account will this cause issues with the ATO?

I am also unsure of the impact on the above scenarios on Year End.

Best Answers

  • Rav
    Rav Administrator, Reckon Staff Posts: 15,743 Community Manager Community Manager
    edited October 2022 Answer ✓
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    Hi @JasonFrost

    I'd avoid creating a new employee profile as it will result in a separate entry in the employee's MyGov account when it comes to tax return time at EOFY.

    I'd recommend that you continue using the existing profile you have for the employee, you'll need to remove the termination date in the Employment Details section in their profile. You'll also need to make any other necessary amendments such as switching their status from part time to casual, hours worked, leave balances, pay frequency etc etc if required.


    Let me know if you have any questions.

    Cheers

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  • JasonFrost
    JasonFrost Member Posts: 3
    Answer ✓
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    Thank you Rav for your reply.

    I figured to continue using the existing profile (with necessary amendments) was the practical approach but wanted to check if I was missing something, given this is probably an uncommon situation, as I am not a payroll nor reckon app expert. I do not want to stuff up MyGov!

Answers

  • swakhlu01 .
    swakhlu01 . Member Posts: 482 Payroll App Expert Payroll App Expert
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    @JasonFrost I am not aware of having employee accounts in Reckon Payroll App. The STP reporting is tracked using employee TFN. If this has not changed, then you are reporting to ATO for the same employee. When you mention you paid out all entitlements of the employee how was this captured and reported in Payroll app?

    It might be better to give ATO Business support line a call and confirm what you need to do. I don't believe Reckon support team can advise on such matters.

  • JasonFrost
    JasonFrost Member Posts: 3
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    Thank you for your reply swakhlu01.

    I refer to the payroll data within the app of a specific employee as being akin to an employee account just as a convenient term when adding a new employee.

    The entitlements, in this case being unused annual leave plus leave loading, was calculated along with tax and recorded in the app as income and witholding tax for the employee.

    I don't see why the Reckon support team cannot advise on such matters as the app has been written by reckon to comply with the ATO STP requirements.

    Where I am am seeking guidance is what is the correct way to record the new employee payroll data in the app once the employee commences working as a casual. Keeping in mind this is not a continuation of employment situation, so there is no existing YTD figures for the employee once they commence employment as a casual to be reported to the ATO. In this case should I keep using the existing employee (account) or create a new one to ensure correct YTD when the employee was part-time and seperately as a casual going forward?

    I note the ATO says in "The rules of reporting through STP":

    "A pay event can only include one record per employee, per payroll ID. 

    • If you establish two payroll records for an individual, you can report these payments within the same pay event by using unique payroll identifiers. You must report separate YTD amounts for each unique payroll identifier for an employee."

    Can the app give an employee a unique payroll identifier? In any case is it too late for this as no further payroll data will be reported to the ATO for the employee as part-time?