Reducing YTD gross AFTER STP has been lodged

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Hi All, is there a way in Reckon Accounts Payroll, to make an employees gross YTD earnings less than what has been reported . All STP files have been lodged, but some of the wages paid to the business owner should have been directors loan. Prior to STP you could do an amended paper Payment summary. Hoping there is a way. Thank you
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Leshelle

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Posted 3 weeks ago

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Linda Putland, Accredited Partner

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Leshelle - the R2 version of Reckon Accounts 2019 will have a year end STP lodgement function included -that will allow you to report the final YTD figures for all staff - this should pickup the changes you will need to make.    The changes themselves would best be added by making 2 payroll items - one that will reduce the gross wages by the amount that should be directed to the loan account and one that will transfer this reduction to the Directors Loan account.  You will need to decide if this change is going to affect super and/or payg withholding... If its the business owner they can probably make their own decision... I would suggesting leaving payg and super as they were?

1.  Create a Deduction item - call it something like Adjust Gross Wages - Director Loan - point this item to the expense account you use for Gross wages - make the tax tracking Gross Wages - and then no tax or super ticked...

2.  Create an Addition item - call it something like Payments to Directors Loan - point this item to the Liability account for Directors Loan/Drawings - make the tax tracking set to None - and then no tax or super.

Now go to the last pay for the year - unlock it and add these 2 lines - for the amount deemed to be directors Loan value for the year.  the 2 amounts will be the same and will cancel each other out so the Net Pay does not change... but now the YTD Gross will be reduced... and you can lodge your Final STP file with the correct Gross wages figure.

Hopefully this makes sense?


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Leshelle

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Thankyou Linda
This is very helpful. I will test it out on my sample company first, but sounds like a great solution. Given the fact that employer is less than 20 employees, and doesn't have to report via STP, for June 30, ( but I did opt in voluntarily in about April) I was wondering if just not to finalize it and still issue payment summaries?
Food for thought.
Thank you
Leshelle
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Linda Putland, Accredited Partner

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No worries Leshelle - you have a couple of options... see the link here...https://community.reckon.com/reckon/topics/how-do-i-finalise-my-end-of-year-reporting-with-single-to... my preference would be issue payment summaries to employees so they have peace of mind - but lodge a final STP event before 31 July, rather than send in an EMPDUPE file.  
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Leshelle

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Thanks for the links Linda
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Michelle

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I didn't think of that I had 2 employees finished work prior to starting stp.  So they didn't come up in the final pay event for the end of year.  I have issued these 2 employees payment summaries.  I guess I will have to notify the ato somehow regarding these 2 employees?   
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Linda Putland, Accredited Partner

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I would lodge a Final (end of Year) STP event using the R2 new functionality for end of year (not the final pay event option you see in R1) - this will ensure that the YTD data for ALL employees is lodged... I would NOT be doing a mix of empdupe and STP...
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Leshelle

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Hi Linda
Just wanted to let you know that after following your work around, I have the desired outcomes in the General Ledger, AND the Payment Summary shows what I want to report for the Gross. I assume its safe to say that STP will pick up what ever is the latest figures on Payment Summaries, so that the next STP lodgement , or FiNAL STP lodgement, will send the NEW figures. If so, all will be well.

Thanks once again, this group is a great resource.
Leshelle