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Adjust single touch payroll (STP) reporting

Adjust single touch payroll (STP) reporting, including when an incorrect STP reporting type has been used or reportable pay items have been set up as non-reportable.

Incorrect STP reporting type used

If an amount in a pay run has been processed under an incorrect STP reporting type, you'll need to reverse the payment and allocate it to the correct reporting type. The amount paid is accurate, so there's no need to make further payments or change the employee's net pay. It's only the reporting that requires amending.

By using the Initial YTD's screen to make this adjustment, we can adjust the reporting without changing the employee's net pay. The initial YTD screen is primarily designed for entering employees' YTD figures when migrating from another payroll system. However, it also serves a secondary purpose: to correct or adjust YTD values after migration, when you do not want the changes to affect an employee's net pay or superannuation calculations. This allows you to make administrative corrections (e.g. fixing reporting errors, adjusting balances, or adding FBT values) without triggering payroll recalculations or impacting the employee's payslip or payment.
  1. Go to Payroll, then Employees, then select the employee.
  2. Select Edit details.
  3. Select Edit under Initial YTD's.
  4. Reverse the payment by entering the amount that was processed incorrectly as a negative amount allocated to the STP reporting type that was incorrectly used.

For example, if $500 was incorrectly processed as Overtime (an Earnings & leave pay item type):

1. Select Add next to Earnings & Leave

2. Select the pay item name

3. Select the STP reporting category as Overtime.

4. In the Gross amount (YTD) field, enter -500. This will reverse the incorrect reporting.

Now you have reversed out the incorrect reporting type, you now need to allocate that figure to the correct reporting type.

  1. Allocate the payment to the correct reporting type by entering the amount that was processed incorrectly to the correct STP reporting type.

For example, if the $500 that was incorrectly processed as Overtime should have been processed as an Allowance:

1. Select Add next to Allowance

2. Select the pay item name

3. In the Gross amount (YTD) field, enter 500. The employee's YTD earnings will remain the same, but the reporting is now adjusted.

  1. Select Save & continue. This will take you to the remaining steps of the employee details screen. If you don't have any other details to add or change, select Skip and enter details later, then Skip pay setup & finish.
If the incorrect STP reporting category relates to unused leave or ETP in a termination pay, there may be tax implications and there may be extra steps. Refer to the ATO reporting rules for unused leave on termination.

Reportable pay items weren't included in STP

If an item that's meant to be reported under STP hasn't been set up in Reckon One to be reportable, you'll need to check the pay item setup, create a new one, then update employee year to date (YTD) figures to adjust payments processed under the old pay item and reallocate them to the new.

By using the Initial YTD's screen to make this adjustment, we can adjust the reporting without changing the employee's net pay. The initial YTD screen is primarily designed for entering employees' YTD figures when migrating from another payroll system. However, it also serves a secondary purpose: to correct or adjust YTD values after migration, when you do not want the changes to affect an employee's net pay or superannuation calculations. This allows you to make administrative corrections (e.g. fixing reporting errors, adjusting balances, or adding FBT values) without triggering payroll recalculations or impacting the employee's payslip or payment.

Check pay item setup

You'll need to check the pay item setup to see if it's set to be reportable:

  1. Go to Payroll, Payroll settings, then Pay items.
  2. Find the pay item and select the pencil icon to Edit.
  3. Check the settings. The item won't be reportable if:
    1. the Show as allowance for STP checkbox isn't selected
    2. the Tax applicable checkbox (if present) isn't selected
    3. the calculation method is Tax free.
  4. Select Save and close.
Once a pay item has been used in a pay run, it can no longer be edited. If you’ve identified that the pay item is not reporting correctly to the ATO, we recommend disabling it. This will prevent it from appearing in the pay run dropdown going forward

Create a new pay item

  1. Go to Payroll, Payroll settings, then Pay items.
  2. Select Create pay item and select the relevant pay item type.
  3. Enter or select the mandatory fields and select Create.

Adjust employee YTD figures

  1. Go to Payroll, then Employees, then select the employee.
  2. Select Edit details.
  3. Select Edit under Initial YTD's.
  4. Reverse the payment by entering the amount that was processed incorrectly as a negative amount allocated to the STP reporting type that was incorrectly used.
  5. Allocate the payment to the correct reporting type by entering the amount that was processed incorrectly to the correct STP reporting type.

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How did we do?

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