EFOY

lesley_9730541

Would you please advise if I need to do an end of financial year STP report (STP1) in Quicken as this was used for July & August 2023 before you moved us over to Reckon payroll in September 2023.

Just to clarify I would need to do STP end of financial year in Quicken (STP1) and Reckon (STP2)?

Please advise

Many thanks

Lesley

Rav

Hi @lesley_9730541

Can I just clarify, when you say Quicken, are you referring to the old Payroll Premier software that you've migrated from?

lesley_9730541

Sorry yes, the old payroll premier software.

I have just been reconciling the STP EOFY report and it is correct for 2023 - 2024 except any employee that salary sacrifice in July & Aug is added to the gross.

Example - Gross Wage was $257,901.64 but the STP EOFY report says $259,001.64 which is a difference of $1,100 which is the salary sacrifice amount from July & Aug 2023 in payroll premier.

I hope this make sense - would this be due the difference in STP 1 in payroll premier for July & Aug reporting and the Reckon STP2 reporting

Thank you

Rav

Yes, you're exactly right @lesley_9730541

The balance of some pay items that were previously attributed to gross under STP Phase 1 will remain as they are in the EOFY finalisation but after switching to STP Phase 2 they have become disaggregated and any balances paid after the switch will be shown separately.

There's some more info on this in the following articles which might be handy -

Disaggregation of gross in your EOFY finalisation in Reckon Payroll 📅

Understanding how to prepare and reconcile your EOFY with Reckon Payroll 📅

lesley_9730541

Thanks Rav

I have just reconciled all four of our companies but I have found a tax amount incorrect with one employee

The payroll and my ledgers (match the bank and BAS statements) all match but when I reconciled with STP2 EOFY report it show shows an extra $1732.99 tax for one employee - it shows $7690.00 tax but it should be $5957.01

Thoughts on how to amend this?

Thanks Rav

Rav

Hi @lesley_9730541

Its hard to say at the moment but the first thing I'd suggest is to try narrowing down where that extra tax amount is coming from.

When you look at the pay runs for that employee using the Payroll Detail Report filtered to that employee only, are the tax calculations in each pay run correct?

If so, then I'd suggest taking a look whether the employee has an initial YTD tax amount added for them in their profile and whether that is required. To check that, select the employee ➡️ Edit Details ➡️ Initial YTD

I've added a screenshot below from my test book just as an example 👇

lesley_9730541

Hi Rav

Thank you for your response - I can see that the YTD figure rolled over from payroll premier is incorrect

For this employee the nett payment of $2436.00 was rolled from payroll premier to reckon payroll as the tax withheld - the tax withheld should be $703.01 and therefore the error if the amount $1732.99 which is the amount out when reconciling.

How do I rectify this - can I just change the tax withheld amount to the correct amount or with this be an issue with STP EOFY report

Thanks so much for your assistance

Rav

Good stuff @lesley_9730541, glad you found it.

Yes I'd recommend changing/correcting that initial YTD amount in the employee profile.

You can do this by selecting the tax item and editing the amount then saving (example below). Once you've done that, create an new EOFY finalisation and the balances should match up.

lesley_9730541

Fabulous - thanks so much for your assistance, much appreciated.

One other question - a directors fee under company contributions does not show in the EOFY STP report - is this correct?