Incorrect Payment Summaries

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  • Updated 11 months ago
I have a pay paid on July 4 2016 for the June 2016 period and the amount has shown in both the 2016 payment summary and the 2017 payment summary. The payroll reports for the EOFY are correct . This was bought to light when the ATO wrote to inform us that the Emdupe varied from the activity statements
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Rhonda

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Posted 11 months ago

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John Graetz

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Hi Rhonda.  As to the year in which a pay appears for ATO purposes is solely governed by WHEN the payment is made.  The fact that your June 2016 payment was made in July means that it becomes a July payment and not a June payment.  Your Payment Summaries can only include payment actually made within a calendar year. The fact that the final pay for the year was made only in July, means that it becomes a July payment..  
John L G
(Edited)
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Kevin Russell, Accredited Partner

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Rhonda did you balance the wages to the payroll summary before you produced the payment summaries?
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Rhonda

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Hi John - I understand that but my payment summary for 2016 is including the amount paid in July. My payroll reports says she was paid $4860 for 2016 and my payment summary says $5860. This extra $1000 was paid in July 2016 and was her final pay as she was terminated. When I run the 2017 payment summaries she also has one in that year for $1000. Any ideas?
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John Graetz

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Rhonda, in theory this is not possible.  Double check the date of payment for the pay check.  Try running a new set of reports now for the year to 30/6/2016, for this employee and generate a new payment summary and see whether or not they still disagree.  It almost sounds as it at some stage, somebody has changed the date of the pay check for some reason during which one of the reports was run.  Or another possible reason is that somebody has created a pay adjustment transaction - check under the employee's record for all transactions and see whether something odd shows up there around that date range.or even for the whole year.  Unfortunately an errant payroll adjustment entry can potentially throw out a payment summary.
John L G
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Linda Putland, Accredited Partner

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Rhonda, I am in agreement with John.... are you reading from reports you did for year end 2016 - or reports that you are running today?  its sounds almost like the pay was entered as June 2016 at the time... and therefore shows up in the reports that were run in 2016 as being for that year - but maybe when the bank rec was done and the payment wasn't put through until July 2016 - then it was amended - and of course now its showing up as being in the 2017 year... I concur with John that this is really the only way this could happen?  re run your reports as John suggested - Preview the 15/16 payment summary for the person and the payroll summary report for the year ending June 2016... do they agree?  Cheers Linda

PS I am thinking if the empdupe questioned by the ATO was for 2016, then it was probably created after that pay was changed from June 2016 to July 2016...
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Kevin Russell, Accredited Partner

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Nice point Linda. Rhonda have you tried restoring the backup from June 30? You could also test this through the Audit report from the Accountant menu