Treatment of re-employeed employee and change of status

Question

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.

Rav · Accepted Answer

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

JasonFrost · Accepted Answer

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!