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Pay run submission Error - Contractor ABN

Coorarabox1

Have just noticed an Error from ATO for a pay run on 21/2/24 - as my monthly BAS did not tally with wages and payg w/h. I believe it was due to me inserting the wrong tax scale for this employee. I have changed his tax scale and resubmitted the pay but it still has come back with the same message.

Submission has been rejected by the ATO

Please review the ATO's response and make the necessary adjustments.

"Contractor ABN must be supplied if an Income Stream Collection tuple with a type code Voluntary Agreement contains a Gross Payment or a PAYW Amount that is greater than zero"

Am I missing something that I haven't altered? Employee is under Horticulture/Shearing scale

Thanks in advance

Judi

Accepted answers

Rav

Hi Judi

Don't worry too much about step 6 just yet. I think the most important part of the process is Step 4.

As the note in the guide mentions, you need to switch each and every pay run that this specific employee has been included in since switching to STP Phase 2 to draft status, then just mark it as paid again.

If the above isn't performed for every pay run then you'll continue to encounter the error.

Once you've done the above, then when you're ready to send through your NEXT pay run & submission it should go through successfully.

Hopefully that makes sense but let me know if you have any questions.

All comments

Rav

Hi Judi

We've got a guide for this specific situation which I'll link below. If you follow the steps outlined there it should fix this up for you -

Horticulture & Shearers tax scale in Reckon Payroll - Fix for the Contractor ABN error ✅

Coorarabox1

Hi Rav Thanks for the link - I have tried numerous times to re-submit to ATO - all error messages still. Have changed the tax scale to Horticulture and Shearer and followed your instructions - all okay until instruction #6 Click Continue to declaration and submit the pay run to the ATO. This message does not appear under the "send pay slips" button. I have tried going up to the Options button and "re-submit to ATO" and error again. Even tried ticking the "submit as adjustment" button and still an error. One actually came back with error but included the gross and tax whereas the other ones didn't. I must be doig something wrong.

Please can you help Rav? Thanks. Judi

Rav

Hi Judi

Don't worry too much about step 6 just yet. I think the most important part of the process is Step 4.

If the above isn't performed for every pay run then you'll continue to encounter the error.

Once you've done the above, then when you're ready to send through your NEXT pay run & submission it should go through successfully.

Hopefully that makes sense but let me know if you have any questions.

Coorarabox1

Thanks Rav

The employee has only worked with us for that one pay run since I switched to STP Phase 2 so I've re-done what you suggest and hope when I do a pay run next week for other casuals it will work (Fingers crossed!)

Thanks for your help

Judi

Rav

Let me know how you get on when the time comes 🙂

Coorarabox1

Thanks Rav but I realised over the weekend that the casual employee I'm having the issue with will not be in this next pay run. I have 4 other casuals who will be paid on this Wednesday 13/3/24.

I have tried numerous times to fix the issue but do you think I should ring Reckon and see if we can sort out the problem over the phone? I appreciate your help so far.

Thanks Judi

Rav

Hi Judi

Did these 4 other casuals also have changes to their tax selection? If not, then when you create the pay run for just these 4 it should go through normally.

If they've also had changes, for example to the horticultural/shearers tax scale then you'll just need to follow the same process in the help guide above for them as well.

Coorarabox1

No, they are all fine with no changes. I'll see how it goes on Wednesday.

Thanks Rav.

Judi

Coorarabox1

Hi Rav

Last Wed (13/3/24) is did a pay run for 4 casuals as normal and it worked fine (they are under the Horticulture/Shearing tax scale).

I have just done another "one off" pay today for a shearer (same one as I had trouble with the pay on 21/2/24 which came back with "error") I think the issue could be that although he is a shearer and normally tax would be 13% ... he requested 15% payg w/h for the pay on 21/2/24 and 20% payg w/h for today's pay. Shearers have always been able to have more tax taken out of their pay if requested. Obviously with STP Phase 2 this will not be accepted. I tried to re-do his pay again today to Voluntary Flat Rate 20% but still came back as an error.

I've only just realised this could be the problem as I've always been able to change the shearer's rates. Is there any way I can get this sorted? Thanks Rav.

Regards Judi

Coorarabox1

Hi Rav

Last Wed (13/3/24) is did a pay run for 4 casuals as normal and it worked fine (they are under the Horticulture/Shearing tax scale).

I've only just realised this could be the problem as I've always been able to change the shearer's rates. Is there any way I can get this sorted? Thanks Rav.

Regards Judi

Rav

Hi Judi

Can you give me a bit more info on how you're actioning this custom tax rate(s) for this employee in Reckon Payroll? Are you overriding the tax calculation and entering in a custom tax amount in the pay run itself?

Or have you selected the option for upward variation?

What is the employee's current tax settings set to? (example below).

More importantly, after changing this employee's tax scale to Horticulturer/Shearer did you switch all pay runs this employee was included in to draft status and then re-mark it as paid?

Coorarabox1

I'm so sorry Rav to keep hassling you with this.

Yes - provided TFN SA Resident Horticulture or Shearer worker

Salary and Wages

And yes, I did override the tax calculation and entered a custom tax rate (either 15% or 20% depending on what he requested.)

I did not know there was an "option for variation" - where would I find it? Thanks Rav.

I did resubmit the pay runs for him as you suggested but all came back "error" again.

Thanks Rav

Judi

Rav

Hey Judi

I just had a meeting with our product team and raised your situation there for some additional insight. The consensus is that overriding the tax calculation to a custom tax amount shouldn't cause any problems and potentially its related to all previous pay runs not being refreshed after their tax scale was changed to horticultural/shearer.

With that said, we'd like to take a closer look so I've just sent through an access request to your Reckon Payroll book. It'll come through as an automated email to the email address the book is registered under. Can you please take a look when you've got a chance and grant access.

Secondly, can you please send me a private message and let me know the name of the employee in question along with confirming that their tax scale should be horticultural/shearer.