Report wages on Pay Period Ends rather than Payment Date

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Hi
Is it possible to run reports using wages Pay Period Ends rather than Payment Date if they are different?
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Larissa

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Posted 1 month ago

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Kris Williams

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I don’t believe so, which is why I make my pay end date the same as the payment date, otherwise it plays havoc sometimes with super calculations when I’m trying to double check all my figures
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Larissa

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Thanks Kris for taking the time to answer my question.
I have a situation where a payroll week and reporting week for a client finishes on Saturday but we pay wages on Monday.  This does not work for STP purposes as sometimes it straddles 2 months (like last weekend were Saturday was the 31st of August but Monday was the 2nd of September).
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John Graetz

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Larissa.  Why do you believe that it does not work with STP?  Are you receiving some sort of error message?  It is not uncommon for pays to be paid on a date later than the end of the payroll period.  In fact, there have been many warnings from the ATO about the fact that the payroll end period does not represent the payment date.  This is particularly relevant at the end of the year when some entities have a pay period end date of say 30th June, but the payment is made on 1st July which means that the payment is included in the next financial year, because the date of payment is what dictates things.  On that basis, I find it hard to believe that STP is not accepting such a submission e.g. the very example which you provided.
To support what I am saying, I had a pay which ended on 28/6/2019 which I paid on 1/7/2019 and I had absolutely no problem with my STP lodgement.  In fact, I just checked my STP lodgements and the total gross for an employee for the year to date is representative of the dates of payment for this financial, even though the first payment for the year had a pay period end date of 28/6/2019.
John L G
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Kris Williams

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I agree entirely and that is why I change the pay date to pay end date. I know this is incorrect but it’s the only way I can be sure super reports are correct. I do accept that it works the way it’s supposed to but I find it confusing

Just to confirm & reiterate further ... as per John’s advice, wages are only reportable/applicable upon actual payment (pay date) & - in turn - associated liabilities (eg Super & PAYG) are also only generated at that same point (upon payment). 

As John stated, the related pay period is of no relevance in terms of declaration/reporting & payment.

 

I never recommend having the Pay Date on or before a pay period ends as this means paying in advance & one needs to know the correct & complete hours worked per employee beforehand. 

If additional hours are worked or time off is taken, this then can (& often does) mean an employee can be under/overpaid requiring unnecessary & messy adjustments afterwards to correct. 


Shaz Hughes Dip(Fin) ACQ NSW, MICB

Reckon Accredited Professional Partner Bookkeeper / Registered BAS Agent (No: 92314 015)

Accounted 4 Bookkeeping Services

Ballajura, WA

0422 886 003

shazinoz2@bigpond.com

www.accounted4bs.com


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Glenda Veale

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I agree with Shaz completely.