STP2 submission to ATO error

Jan57
Jan57 Member Posts: 10 Novice Member Novice Member
edited September 2023 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: 3,699 Reckon Accounts Hosted Elite 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

    shaz@accounted4.com.au

    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 Novice Member Novice Member
    edited September 2023

    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: 3,699 Reckon Accounts Hosted Elite 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

    shaz@accounted4.com.au

    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 Novice Member Novice Member

    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: 3,699 Reckon Accounts Hosted Elite 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

    shaz@accounted4.com.au

    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 Novice Member Novice Member

    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: 180 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