STP2 submission to ATO error

Jan57
Jan57 Member Posts: 10 ✭
edited September 11 in Accounts Hosted

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.

Comments

  • Acctd4
    Acctd4 Accredited Partner Posts: 3,191 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert

    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 😊

    Shaz Hughes Dip(Fin) ACQ NSW, MICB

    *** Reckon Accredited Partner(AP) Bookkeeper - specialising EXCLUSIVELY in Reckon Accounts / Hosted ! ***

    * Regd BAS Agent (No: 92314 015)* ICB-Certified Bookkeeper* Snr Seasonal Tax Consultant since 2003 *

    Accounted 4 Bookkeeping Services

    Ballajura, WA

    [email protected]

    https://accounted4.com.au

    (NB: Please give my post a Like or mark as Accepted Answer if I have been able to resolve your query as this helps others when seeking solutions!)
  • Jan57
    Jan57 Member Posts: 10 ✭
    edited September 11

    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
    Acctd4 Accredited Partner Posts: 3,191 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert

    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:


    Shaz Hughes Dip(Fin) ACQ NSW, MICB

    *** Reckon Accredited Partner(AP) Bookkeeper - specialising EXCLUSIVELY in Reckon Accounts / Hosted ! ***

    * Regd BAS Agent (No: 92314 015)* ICB-Certified Bookkeeper* Snr Seasonal Tax Consultant since 2003 *

    Accounted 4 Bookkeeping Services

    Ballajura, WA

    [email protected]

    https://accounted4.com.au

    (NB: Please give my post a Like or mark as Accepted Answer if I have been able to resolve your query as this helps others when seeking solutions!)
  • Jan57
    Jan57 Member Posts: 10 ✭

    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
    Acctd4 Accredited Partner Posts: 3,191 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert

    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 ?

    Shaz Hughes Dip(Fin) ACQ NSW, MICB

    *** Reckon Accredited Partner(AP) Bookkeeper - specialising EXCLUSIVELY in Reckon Accounts / Hosted ! ***

    * Regd BAS Agent (No: 92314 015)* ICB-Certified Bookkeeper* Snr Seasonal Tax Consultant since 2003 *

    Accounted 4 Bookkeeping Services

    Ballajura, WA

    [email protected]

    https://accounted4.com.au

    (NB: Please give my post a Like or mark as Accepted Answer if I have been able to resolve your query as this helps others when seeking solutions!)
  • Jan57
    Jan57 Member Posts: 10 ✭

    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
    klaura Reckon Staff Posts: 51 Reckon Staff

    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