Adjusting last FY wages
Does anyone have an idea how can I record payment to employee (Bonus) made in July to be reflected in FY2021?
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Before STP it could have been done as a journal, but I don’t think you can now because it actually has to be paid out in the financial year. I’ll also be interested to hear other people’s feedback
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Thanks Kris,
Reckon support suggested setting up YTD amounts. It helped to show the payment in FY2021 but not sure how to record the actual payment made in Jul now.
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I think you need an accountant’s advice
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The accountant said it is possible, but he is not familiar with Reckon accounts hosted. So I am after advice from someone who knows the software.
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You could make an adjustment to the last pay, and do an update STP submission. The amount would show as an o/s cheque on the bank rec until you physically pay it. I really don’t think it’s acceptable though from a tax point of view.
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@DashaC What's the specific scenario that's led to this?
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The ATO is adamant that any payments are reflected in the year in which the employee receives the payment. In other words, if the pay period ends on 30/6/2021 but the pay is only processed on 1/7/2021, then that payment falls into the 2021/2022 financial year.
John L G
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That’s what I thought John but Dasha said the accountant said it could be done so I was just answering the question about how I would do it. Thanks for confirming
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John what if the wages weren’t physically paid but journalled to a drawings account, I have to do this for a number of people in their own businesses. Wages are entered normally and reported to STP but are offset not paid. Could it be done for the previous year on that case? Just curious oboist your opinion
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Kris, I cannot give accounting advice as such. However, my personal opinion would support the notion that when you journal the transaction, the date of that journal would be the effective date of payment. That is a different scenario than actually giving somebody a cash payment. I am presuming that the date of payment in the STP file is the same date as that of the journal.
John L G
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