Table of Contents

Assigning YTD values to employees

Overview

When changing from another software provider to Reckon Payroll, you can enter against each employee so correct values are displayed on the employee's pay slip and reported to the ATO.

Before entering the YTD values, zero out the values in your old software. This makes for a seamless transition as employees will only see the one entry in MyGov.

In Reckon Payroll you can:

  • select the relevant ATO reporting category
  • select the income type where applicable
  • we have also changed the current functionality, to allow you to enter multiple instances of the same pay item when:
    • needed for auditing purposes
    • the same pay item needs to be reported to the ATO differently, for example, where Long Service leave needs to be reported as Lump Sum B and as Lump sum A, code R.
These changes are only available for books that have switched to STP Phase 2.

Entering YTD values

  1. Select an employee, then Edit details and go to Step 3 Initial YTDs of the wizard > Edit.
  2. Selecting Add against any of the pay item categories, opens the drawer for the relevant pay item selection. The fields available within the drawer are dependent upon which pay item is selected, and the settings within that pay item.
  3. Select the specific employee. Select either
    1. the link View and update initial YTD balances or
    2. Edit details and Edit under Initial YTD’s.
  4. Select Add against the relevant pay item type.
  5. Select the pay item from the drop-down list. The fields displayed are dependent upon the pay item type and setup.
  6. Enter the values, ensuring you complete all mandatory fields.
  7. Select Add to save the YTD values.
  8. The values are reflected in the Initial YTDs screen and will also display in the employee's Year-to-date summary.

The values displayed in the employee's Year-to-date summary are those that are sent to the ATO. Any values that are not required to be submitted to the ATO, such as after tax allowances, are not displayed here. You can fins those under Reports.


Earnings & leave values

Once a pay item has been selected, and the gross amount entered, select the STP reporting type. Your choiuce of reporting type will change the options in the STP reporting category.

If the earnings item is tax free (not required to be reported to the ATO), the STP reporting category field will not be displayed.


Allowance values

If the STP reporting type is INB, the reporting selections will default to the pay item setup. If the reporting type is ETP, the reporting type, the reporting category and tax component fields are available for selection.

If the pay item does not have Show as allowance for STP checked, the STP reporting categories are not relevant and wont be displayed.


PAYG values

The selection for reporting PAYG tax is either Gross or ETP. When selecting ETP, the reporting category is also required.


Deduction values

STP reporting type is always INB for Deductions. Like Allowance, the STP reporting category will default to the pay item setup.

If the deduction type is Union/Professional association fees or Workplace giving, the STP reporting category is displayed, but not editable. It will default to the correct category based on the pay item setup.

For any deduction pay items that have been set up as salary sacrifice (that is Deduction Type is Other and the Deduct from gross before calculating withholding is checked), the STP reporting category will default to Other employee benefits.

Where the deduction pay item has been set to Other and the Deduct from gross before calculating withholding is not checked, the values are not required to be sent to the ATO and therefore the reporting categories will not be displayed.


Reimbursement values

As these values are not to be reported to the ATO, the reporting categories will not be displayed.


Company Contribution values

Like Reimbursements, Company contribution values are not required to be reported to the ATO, so reporting categories will not be displayed.


Superannuation values

For Superannuation, the reporting selections will default to the pay item setup.

Where the item type is set to Super guarantee, Collective agreement, Productivity, Spouse deduction or Member voluntary, the STP reporting category is not available, as these values are not required to be reported to the ATO.

When the Superannuation item type is set to Salary Sacrifice, the STP reporting category will default to Salary sacrifice.

When the Superannuation item type is Employer additional, the STP reporting category will default to RESC.


FBT values

A pay item is not required for selection to report FBT values. The STP reporting type defaults to INB and you can select either Reportable fringe benefit amount (non-exempt) or Reportable fringe benefit amount (exceeding exempt).

Users should zero out the data in their previous software system before entering the YTD values. If this is not done, there is a chance that the reported YTD values will be inaccurate.


Need more help?

Ask the Reckon Community at: https://community.reckon.com/categories/payrollapp

How did we do?

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