STP reporting last year's YTD, instead of payroll year 2020

Carmel Howard
Carmel Howard Member Posts: 4
edited July 2020 in Accounts Hosted
I have processed my first payroll under STP. The report has gone across successfully to the ATO. The pay period is for 01-30 June 2019 and is paid on 03 July. The figures that have gone to ATO are YTD figures for the whole of  FY2019, even though paid date is 03 July, and therefore the first payrun of the new pay year. How can this be right?

Comments

  • Kris_Williams
    Kris_Williams Member Posts: 3,272 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert
    edited May 2020
    Regardless of when the payment is made the pay period is the 2019 year, so this is not the first payment of the new financial year
  • Carmel Howard
    Carmel Howard Member Posts: 4
    edited July 2019
    That's not right. All payroll is based on payment date always been
  • John Graetz
    John Graetz Member Posts: 1,651 ✭✭✭
    edited July 2020
    Absolutely correct, Carmel and I pointed this out to Critters222 yesterday.
    John L G
  • Carmel Howard
    Carmel Howard Member Posts: 4
    edited July 2019
    Thanks. John. This has got me stumped with no Reckon phone support available today. That's nuts
  • Joseph Li
    Joseph Li Member Posts: 499 ✭✭
    edited July 2019
    I agree with Critters222. That is how the software works, pay periods. Before STP it is up to the employer to use pay period or payment date.
  • glendaveale
    glendaveale Member Posts: 176 ✭✭
    edited July 2019
    Not correct. All reports run on pay date not pay period date.
  • Linda ABC
    Linda ABC Accredited Partner Posts: 1,131 Accredited Partner Accredited Partner
    edited July 2020
    Carmel - just to clarify - you put in a pay period end of 30th June and a Payment Date of 3 July?  like the image below?

    I totally agree with you and John - the date of the payment is the date that determines which financial year the pay belongs in... and in this case its the 19/20 year... and I have never heard of Hosted getting this incorrect if the dates above are used... I can only suggest that you check the settings under Company information to make sure that the year is set to start in July? Joseph, with Reckon Accounts all reports have always used the payment date... its only in Payroll Premier that the company could select to run reports either on Pay End Date or Payment date - but always has to be changed to Payment Date before running payment summaries - as this is the deciding date.
  • Kris_Williams
    Kris_Williams Member Posts: 3,272 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert
    edited July 2019
    I have been doing payroll since back in the day we drew cheques for them, and the week end date always determined the year because you couldn’t always pay the wages on the last day. Because of this since using Reckon payroll I have always made the payment date the same as the last day of the pay period even if it didn’t get paid till the following week. I accept this is not how Reckon does it but it’s the way I have done it for over 20 years
  • Linda ABC
    Linda ABC Accredited Partner Posts: 1,131 Accredited Partner Accredited Partner
    edited July 2019
    As per this ATO link - https://www.ato.gov.au/business/payg-withholding/payg-payment-summaries/#Endoffinancialyearpaymentst...  employees income is determined by the year in which they receive their pay... I have only been doing payroll for about 25 years and it hasnt ever really been about how the software does it, but what the ATO requires and making the software report as required by the ATO.
  • Joseph Li
    Joseph Li Member Posts: 499 ✭✭
    edited July 2019
    The tax law says employee derives income when received. I am a tax agent. In practice the ATO looks at the payment summary issued by the employer. STP does away with employer issued payment summary. So it makes sense to use STP softwares correctly. Most of the time the payment date is before the pay period end date i.e. receives the monthly pay around middle of the month.
  • John Graetz
    John Graetz Member Posts: 1,651 ✭✭✭
    edited July 2019
    Thank you for the confirmation of what I have been saying over the past two days, Linda and also for providing the ATO link above which is quite specific in what it says has to apply i.e. the date on which the employee actually receives the money, determines which year the payment is recorded under.  It has been drawing attention to this over many years and I have been doing payroll for more than 27 years.
    John L G 
  • Carmel Howard
    Carmel Howard Member Posts: 4
    edited July 2019
    Thanks everyone for your help. I knew this was wrong but with no opportunity to talk with Reckon support yesterday, I was stumped (and very annoyed). I did the age-old solution of starting over and re-doing the pay run and STP process. And guess what? All good. Whether I did something wrong the first time, or the gremlins did, I will never know. My point is that there was great information posted here, and some not so great. For me, you could be really led astray if someone posting a solution here doesn't quite get it right. Reckon support gets no points from me. Rant for the day. Sincere thanks for those of you who replied.