Questions regarding W1 STP reporting and Salary Sacrifice Super.

NarellePaterson

I am getting so confused with what should be reporting where. What figure should be appearing in W1 In BAS I have selected super items as advised in a seminar so adjusted gross is appearing. Is thast correct? Total Gross appearing when I generate STP is actually the adjusted gross figure is this correct? I really need a very simplified and easy to follow answer something I can understand to make sure I am doing everything correctly.

Tanvi_kataria

Hi Narelle - Thanks for reaching.

I am not really sure if that can help you in any way. Please find the attached link for your reference - How do I print a W1 Wages Gross report that deducts SS Super Contribution amount and shows the adgus — Reckon Community

This contains a great information, and hoping this will help you.

Please let us know, for any concerns/issues and will be happy to assist you further. Thank you!

Regards

Tanvi

Rav

Hi @NarellePaterson

There was an issue previously where the total gross in the STP file was not being adjusted when salary sacrifice is present, this then resulted in an incorrect amount populating in the BAS Label W1 Prefill from the ATO Business Portal (info HERE).

This has been resolved over the weekend along with a couple of other bug fixes that automatically apply in Hosted 2023. Check out more info on this from the link below -

🚨 IMPORTANT info for Reckon Accounts Hosted 2023 - Bug Fixes ✅

NarellePaterson

Rav yes I did read that I think this added to my confusion at the time. I rang accountant we just put through the last BAS as it prefilled but moving forward I would like to know that I am doing all the correct thing so again W1 should be the adjusted gross figure that appears on payroll report? Also when I export STP the figure that says Total Gross and PAYG in the box before exporting is actually appearing as the adjusted gross is that correct? see eg:

🤔

Acctd4

Hi Narelle

W1 should just be the ADJUSTED Gross figure but the TOTAL Gross should display separately (& match Total Gross shown) in STP.

On that screenshot, that Total Gross should be the Gross figure on your Payroll Summary report.

Reckon have just advised they’re releasing on an alternative “patch” hot fix that can just be installed over the existing 2023 installation (instead of the previously-required uninstall-&-re-install version) ☺️

NarellePaterson

So Shaz or Rav I use Reckon Hosted how do I fix the issue of adjusted gross appearing on STP export pay event and how do I fix previously reported pay event? It sems to be taking me way longer each week doing pays between all pupose allowances and all that involves and just chacking and rechecking that everything is correct now I have to double check that the programe is doing what it is supposed to. Really wish I could retire at this point.😕

Acctd4

Hi Narelle

As long as it’s all configured correctly in Hosted, I wouldn’t worry about how it’s displaying in the STP portal eg if it’s set up correctly, it’s reporting correctly. How this actually displays, is beyond our control as end users 😬

There are conflicting views on this but as far as I’m aware now, the latest patch update is specifically related to how W1 prefills on the integrated BAS, not anything to do with the STP portal display ☺️

NarellePaterson

Shaz

I know I am sounding really dumb right now but how can I tell if it's all set up correctly and do I have to do anything to get this patch update in Hosted?

Rav

Hi @NarellePaterson

With Hosted, you don't need to do anything. The updated fix that was released last week is automatically applied in Reckon Accounts Hosted and takes effect upon your first login after release (26 Aug).

Kris_Williams

You don’t have to do anything about the patch it will already be updated by Reckon

NarellePaterson

Thanks guys thought so.... very promp replys for a Monday morning👍️

Rav

Also, I just wanted to provide clarity/context around this.

The total gross balance that you see in the STP Export window in Reckon Accounts Hosted (ie. from your earlier screenshot above @NarellePaterson) is the employer component of total gross for the pay run itself and is minus salary sacrifice. This is what the ATO use for BAS prefill.

Separately, the employee component of total gross INLCUDING salary sacrifice is also included in the STP submission which is the Year to Date balance.

Hopefully that hasn't confused matters more, but just wanted to provide some clarity as its a bit different now that STP Phase 2 disaggregates salary sacrifice.

Acctd4

Thanks @Rav

I think the confusion is that originally (in STP Phase 1), it was the Adjusted Gross that always displayed in the program’s STP Gross window above screenshot AND also showed as the Gross (less SS) upon upload into GovConnect. Then since Phase 2, these figures have displayed as the full gross amount (incl SS).

The patch update referenced the issue of SS not being deducted upon prefill of W1 in the BAS but there seems to be debate over whether this “gross v adjusted gross” was also incorrect - & being reverted - in the STP process 🤔

NarellePaterson

OK more confusion I am beginning to feel like an idiot. Why am I not getting this???🤪

The ATO says "  Single Touch Payroll Phase 2 requires you to report pre-sacrificed amounts and separately report the salary sacrificed amounts:

and "There's been no change to activity statement requirements – you still need to report post-sacrificed amounts at W1, and you shouldn't include pre-sacrificed amounts at this label.

Note, we will pre-fill your activity statements for labels W1 and W2 in ATO online services using the employer level totals you reported to us through STP. "

So my issue is that if STP wants pre sacrificed and W1 wants post sacrificed how come both my W1 and total gross figures in STP are the adjusted gross figures🙏 I think I need may neeed to speak to someone one on one to get this sorted.

Acctd4

Hi @NarellePaterson

It is definitely a bit confusing!

With further info since received from Reckon, I can confirm the following:

• The Total Gross amount displayed in your software (in the Process Single Touch Payroll) window should be your Payroll Summary report's Adjusted Gross
• The Total Gross displayed for the STP file once uploaded into Reckon's portal will also display this Adjusted Gross (This is the W1 "Adjusted" amount - that prefills in the BAS)

• HOWEVER, if you click on the Detail link of the uploaded file in Reckon's STP portal, the Gross Pay amount shown on this screen is the full (TOTAL) gross & INCLUDES any SS amounts - These SS amounts are also displayed under their applicable SS & RESC columns too (This is not a duplication but just a display/view format)

NarellePaterson

Thanks shaz it is confusing especially when I start reading so much stuff it all ends up just as a ball of chaos in me head. What seems like conflickting info and also the different wording used between software and ATO eg adjusted gross and pre and post SS doesn't make it any easier but I think and hope you have explained it. So far the only pays affected by SS are mine and husbands so if it's wrong maybe my accountant will have to deal with it, but I always like to at lease think I know I am doing things right.😀

Kris_Williams

I too am confused because the prefill figure for W1 included the salary sacrifice, so what have I done wrong?

sorted it

NarellePaterson

@Kris_Williams Ahhh See this is what I mean about confusing. when you say included SS what do you mean is the SS amount not been taken off the Gross total so it is not the adjusted gross.???

Acctd4

W1 has always been the adjusted amount - This is because the ATO wants to see just amounts that are "subject to tax", at this label (eg SS components are deducted from gross before tax is calculated so it incorporates this reduction so only the taxed amounts are reflected) 😊

This is why Reckon needed to release the recent patch update for STP2 - to revert it back to ensuring the adjusted (& not full gross) was still being reported at W1 😬

Kris_Williams

Correct @NarellePaterson , now I’m confused all over again

NarellePaterson

Kris I think nowdays I am perpetually confused...anything to do with pays and ATO...wish I could retire it's all getting way to hard for this old duck.🦆 I hope someone can help you don't ask me I am sure I will lead you astray.

Acctd4

@NarellePaterson & @Kris_Williams

It's probably better explained using an example:

An employee earns $ 2,000 gross less $ 500 SS.

They're only being taxed on $ 1,500 (after the $ 500 SS) so the $ 1,500 is the figure the ATO wants to see at W1 😊