STP2 submission to ATO error

Jan57

Completed my first payroll under Reckon Desktop STP2 and submitted to ATO and got an error message saying "submission rejected by ATO" - Contractor ABN must be supplied if an Income Stream Collection tuple with a type code Voluntary Agreement contains a Gross Payment or PAWGW amount that is greazter than zero.

Trouble is the relevant employee doesn't have a Voluntary Agreement but a Voluntary/Flat Rate of 39%. The Voluntary Agreement section is greyed out so can't be changed. How do I fix this? Had no issues under STP1.

Acctd4

Hi Jan

In the employee's record - under Taxes on the Payroll and Compensation Info tab - you just need to enter the employee's ABN here:

Once you've done that, re-generate & submit a new STP file again 😊

Jan57

Thanks Shaz, The person involved is the owner of the business who is a "Closely Held Payee" but has requested a tax rate of 39%. He doesn't have an ABN and from what I have read you cannot use the company ABN. He is also not under a Voluntary Agreement.

Acctd4

Ah OK ... It sounds like you've just selected the wrong Income Type for him then - It should be CHP here:

This then doesn't display the ABN field as it's specific to Contractor Income Types:

Jan57

I have Tax Scale as Voluntary Flat Rate 39%. The Income Type box is greyed out so can't be changed to Closely Held Employees. To get access to Income Type the Tax Scale box has to be between Scale 1 to Scale 6. He has had a voluntary tax rate of 39% for years and doesn't want to change.

Acctd4

Ohhh ... you've posted under the Reckon Accounts Hosted category but that looks like the App or Reckon Payroll/Reckon One 😬

I'd suggest posting under the applicable category instead (I don't work with those unfortunately so can't help) - You may even find a solution already, if you do a search ?

Jan57

No worries. Thanks. Realised I had put it under Hosted rather than Accounts so have posted there. Just couldn't find how to delete from the wrong section. :)

klaura

Hi Jan57,

If you choose a Tax Scale other than Voluntary Flat rates, you can alter the income type to Close Held Payee. Contractors who have a voluntary agreement in place are covered by the STP Ph. 2 Voluntary type.

Best regards,

Karren