RECKON EOY PAYG Summaries not including Unsued Holiday Pay

Liza Oates

I am trying to reconcile my summaries before having to process new payroll on Monday 1 July.

The unusued holiday pay is not appearing on my payroll summaries gross wages. The tax is calculating correctly but gross wages does not include the amount of pay which has been paid to ex- employees. I set this up as a payroll item called Unusued Annual Leave Paid.

I think this may have something to do with STP2 migraton but I urgently need to get my Payroll Summaries reconcilled and uploaded to STP for my EOY Final Report.

Can Someone help?

I have not recorded unused annual leave in termination payments on my payroll tax returns either

In addition I used the same payroll item when someone was made redundant - should I have used a LUMP SUM R for his unused annual leave.

His redundancy pay was set up using Lump Sum D.

Thank you

Liza

Acctd4

Hi Liza

STP replaced the old PAYG Payment Summaries - These forms only have minimal labels so are unable to report all of the new STP2 categories. Therefore, they will usually not display the correct amounts.

Hopefully, you've been checking your submission figures each time. I use a customised Payroll Summary for my regular submissions & also another version for finalising. You'll find my instructions on how to create the per-submission one in this thread here:

https://community.reckon.com/discussion/8035648/stp-reporting

The finalise version is just a further modification of this Payroll Summary - set with Display columns by Employee (rather than by pay frequency eg Week, Two Weeks etc)

Check the overall FY total & PAYGW on this finalise version against the totals for these in your RAH Process Single Touch Payroll window (NOTE: You need to select Finalise Year, NOT the usual Pay Event option in the dropdown!)

Upload your finalise STP submission - ensuring you select the SECOND Report Type option in Reckon's portal:

Once the submission is uploaded, it's in Draft status (& therefore can be deleted if needed) , click on the Detail link at the end of the submission line to display each employee's total pay breakdown. Check these amounts against each employee's totals on your modified Finalise Year report in RAH.

Once you're happy that everything matches, you can Submit this draft.

Your setup for Unused AL looks fine apart from the leave accrual - it doesn't continue to accrue on payout as the worker is no longer "employed".

A "Genuine Redundancy" has specific conditions which determine how it's configured, reported & taxed. It can be complex & can also vary considerably between employers so this is something I would recommend 1-on-1 assistance with. In summary though, it definitely needs to be reported under a separate Payroll Item as it will either be an ETP or a Lump Sum D. Unused AL paid out as part of a genuine redundancy is also categorised differently & reported as Lump Sum A.