Closely Held Payees - Incorrect STP data

Kali

Hi Rav,

I just completed a sanity check against YTD figures lodged through STP and the YTD figures showing on an employee's pay slip and have come up with a discrepancy for one employee.

This particular employee has an income type of CHP (Closely Held Payee).

I've included screenshots below of the two screens:

Screenshot 1 = STP YTD figures showing in Reckon GovConnect.

Screenshot 2 = YTD figures showing on employee's payslip inside Reckon Payroll.

The YTD figures shown on the pay slip are correct.

The figures showing under SAW on screenshot 1 are the initial YTD figures entered into Reckon Payroll.

The figures showing under the CHP heading appear to be somewhat correct.

The gross amount is correct. However, the PAYG and allowance figures need the respective $2.00 & $18.75 added to their totals from SAW.

To be clear the correct overall figures should be:

Total Gross: $6,419.89 (including $42.50 of allowances)

PAYG: $6.00

Super: $706.10

She has been a closely held payee her entire tenure so there should be no SAW. It would appear some of her gross is being reported twice. Once as SAW and then again under CHP.

Can you please shed some light on this?

Rav

Hi Kali

Are the figures from the GovConnect screenshot for the full period that this employee has been paid in the financial year OR is just for that specific pay you're submitting? I note that the period listed in the top right corner lists 14/1/2024 - 20/01/2024. Let me know when you can.

Secondly in regard to the CHP & SAW, I'd recommend checking what any initial YTD balance has been categorised as for this particular employee.

To do that, go into their profile and select the Edit option then click on section 3. Have any of the balances for this employee been categorised under the SAW income type?

Example from my test account below where you'll see I've added an initial YTD earnings for this employee under SAW.

Kali

Hi Rav,

Sorry - i just updated my post to make it a little clearer for you but you responded whilst i was mid update.

I have narrowed down where the issue is.

Please have another read through of the above.

Cheers,

Kali

Kali

And yes, for full financial year. I made some changes so lodged an updated STP file.

Kali

Both Ordinary YTD and Saturday YTD have been entered correctly as Income Type: CHP.

Rav

The balances that are in the initial YTD section will be STP Phase 1 employee balances brought over in your migration from Payroll Premier. Since there was no concept of income types in STP Phase 1, I'm assuming this would have come through and been categorised as SAW until the STP Phase 2 Ready Checklist was completed which would have then updated the employee info & balances based on the income type selection, in this CHP.

STP Phase 2 utilises the hybrid disaggregation method which means that the ATO are aware there will be a mix of balances reported under STP Phase 1 and subsequently Phase 2 after switching (which you now have in Reckon Payroll).

I am not sure I'm across the full details in this specific example, or there may be gaps in my knowledge here to be honest, but I feel that since the YTD balances are correct that is the important aspect and when EOFY rolls around, that will be the full & final balance that is overwritten/updated when you complete an EOFY finalisation. With that said, do you feel there is an issue here?

Kali

Hi Rav,

Yes, I do. Correct me if I'm wrong but if an employee is checking their YTD balances through their MyGov account these figures are populated from the STP figures. Therefore, for this particular employee it's currently showing double the gross earnings?

Rav

That shouldn't be the case. The employee YTD will get overwritten upon each new regular submission or adjusted in the case of an update event.

Has the employee stated there are issues with their totals after checking their balances in their MyGov?

Kali

Hi Rav,

Yes, but each submission is still reporting the two separate gross amounts? If we change nothing inside the system how will the STP submission be corrected?