Problem with Finalization of STP Phase 2 Lodgement

I have a problem with one of our clients STP finalizations which was lodged under STP Phase 2

The ATO is saying that the finalization was lodged with a different Pay ID - no space in names and that we should contact software provider for instructions

Has anyone else had a problem with this?

All prior STP uploads for this client did not have a problem

Thanks Lorna

Accepted answers

All comments

Rav

Hi @LornaBock

Was the EOFY finalisation submission actually rejected? ie. does it show an Error status in GovConnect?

I've asked around the support team and the consensus is that we'll need a lot more info about this and in particular, what the ATO are wanting you/the client to do. Is that all the info the ATO provided? What is the 'different Pay ID' that they are referring to?

Has anything changed in regard to any employee or company information immediately prior to this particular submission being sent?

LornaBock

Hi Rav,

Status all good in GovConnect

We have found that, for example, Adam Henwood (who is also a client of ours) has an employee number: "Adam Henwoo" When we search his Lodgements on ATO Portal it looks like this

The Tax Ready one is Finalization lodged under STP2 and the and I assume the Not Tax Ready one is under STP1

Tax Ready Detail

Not Tax Ready Detail

All of the employees have the same employee number as their name

It's almost like STP1 ignored the space and STP2 doesn't. The result is the employees all have 2 income statements sitting in their accounts. Having said it doesn't explain why the employees are asking when their summaries are going to be finalised.

Rav

Hmm that's interesting 🤔.

Sorry to ask what is probably a silly question but there obviously aren't duplicate employee records in the Hosted file with those differing employee numbers, correct?

I'll ask around internally again and see if I can turn up any more info.

Also, let me preface this first and just say I'm not an accountant or tax agent however from what I've heard on the Community previously, the 'Not Tax Ready' entry is ignored when it comes to tax return purposes. Again though I can't 100% confirm the veracity of that.

LornaBock

Thanks Rav,

No, no duplicate records with differing employee numbers

I have just been on the phone to ATO who is escalating the problem to get all "Not Tax Ready" STP1 lodgements removed. The weird thing is that any employee who was terminated during the year have 2 Finalized Income Statements sitting with the tax office.

Acctd4

@LornaBock This is very common (across the board in payroll, not just with Reckon) & appears to often be an issue on the ATO side. This is further evidenced by the fact you have submitted successfully with no Errors! (If it was a Reckon/configuration issue, you would have Errors & be unable to submit)

I have encountered this multiple times with the tax returns I've been doing where an employee's employer has finalised but it's not reflecting or it has duplicated in their myGov!

Let the employee know this & that the non-Tax Ready status one is simply a duplication at the ATO end & should be disregarded 😬

LornaBock

Thanks Shaz, I just hope the terminated employees pick the correct "finalized" statement!!!

Acctd4

@LornaBock Yeah, however it's not your problem - you've successfully done what's required. The ATO's issues are the problem here so make sure the employees are aware of that 🙄

💡 I would be inclined to send/email out to the employees on this. That way, they have something to show the tax agent if necessary 😊

Kris_Williams

I had this problem last year and told the employee to tell her taxman to ignore the prefill and enter the tax ready one manually

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