Remove employee from all prior period payruns

andrew2290

Hi there, I'm looking to remove an employee from a huge number of payruns. From 1 July 2018 we need to remove them from every weekly payrun up to now. Using Reckon One.

This is because they are a partner in a partnership, being paid 'wages' however legally this cannot happen. They are meant to be drawing wages. The partners have not prepared personal tax returns for those periods and when they do the ATO will have pre-filled gross and PAYG data for them which is incorrect. Hence I need to completely remove, or reduce to nil, their activity in 2019, 2020, 2021 and 2022 financial years.

I know I need to do an update event in Reckon One for 2020, 2021 and 2022 and an amended PSAR for 2019 - I'm comfortable with those.

I have tried entering a negative payrun as at 30 June for one of the partners for their total gross for that year. Reckon One allows me to enter the negative ordinary hours however it sets PAYG to nil without the ability to edit it to a negative figure. Is there any way to manually amend the PAYG to a negative figure or otherwise sort this situation? Any assistance greatly appreciated!

My only other option I see is to lodge the partners individual returns with the gross and PAYG deleted and, when the ATO amends the retruns, appeal the outcome. I've seen this come unstuck before as the ATO will not allow you to appeal PAYG withheld. They always say to amend the data coming to them rather than saying it's wrong.

Rav

Hi @andrew2290

I think the easiest way for you to handle this would be to run a zero EOFY submission for this employee for each financial year in order to effectively bring the reported balances for them to nil/zero.

We've got a help guide which I'll link below that outlines how to action a zero EOFY submission step by step.

https://help.reckon.com/article/m00ayjfqjy-how-to-submit-a-nil-stp-submission-to-the-ato-using-reckon-one

⚠ Step 3 is quite important, make sure that you only select the specific employee in question from the list so that no other employees are included.