Payrun Errors due to not supplying Tax Treatment Codes

TLee
TLee Member Posts: 59 Reckoner Reckoner
edited January 3 in Reckon Payroll 🚀

I attempted my EOFY statement, but it came back showing ERROR. I investigated and discovered that since upgrading to STP phase 2 about a month ago, the ato has indicated them to have errors. The error reason is that it asks to specify the 2 letterTax Treatment Code, eg RT, RD, RN, AN, etc. I cant find where i do this. Ive gone to the individual employee details area, but nothing about it there. Can anyone shed some light please? Thanks!

Comments

  • TLee
    TLee Member Posts: 59 Reckoner Reckoner
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    This is the ERROR stated. I need assistance on how to rectify this. Thx!

  • Rav
    Rav Administrator, Reckon Staff Posts: 16,167 Reckon Community Manager Community Manager
    edited July 2023

    Hi @TLee

    You're correct, this is a new error response from the ATO for STP Phase 2 submissions. From what I understand it occurs specifically when there is a mismatch in employee information not reflecting what it should be in reality.

    I've only seen it once before so don't have a great deal to go off but I'll outline an example below. To be explicitly clear, its only an example and I'm not an accountant or tax agent so cannot advise on tax or what tax selections you should be entering for an employee etc.

    Below you'll see an employee I've created who has not supplied a TFN so I've selected the 'No' option, however their tax scale has been set to TFT not claimed. When I send through a submission with this setup it results in the error response from your previous reply being sent back.

    In reality however, the tax scale selection should have been Scale 4 which is for No TFN.

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    As starting point, I'd recommend reviewing your employee information and ensuring that its accurate in terms of the information in their profiles matching up to what it should be.

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  • TLee
    TLee Member Posts: 59 Reckoner Reckoner

    @Rav Thanks so much I suspect you are right as we have a few juniors (15-16 yr olds) that dont earn enough to be taxed and dont have a TFN. Ive indicated no TFN, but claimed Scale 2 Tax Free Threshold Claimed. So I will go through and change it to Scale 3 No TFN. Hopefully this fixes it! Thanks again for your assistance.

  • TLee
    TLee Member Posts: 59 Reckoner Reckoner

    @Rav Ive reached another problem. It is making me have to input Super fund details for these junior staff members that don’t earn enough to pay super for. Some of them no longer employed after July 1st. How do I get by this issue please?

  • Rav
    Rav Administrator, Reckon Staff Posts: 16,167 Reckon Community Manager Community Manager

    Hi @TLee

    You only need to have a super fund added to the employee's profile (and it can be the default system super fund). This is so if there ever is super paid to this employee it can be assigned to the super fund.

    That doesn't mean you will/have to pay super to them, it just needs to be added in their profile and again, it can just be the default system superfund.

    I feel like I might not be explaining that very well but hopefully it makes sense 🤔

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