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Description
The pay batch process has been enhanced so that a pay batch cannot be closed if pay transactions in the pay batch will cause any payees' earnings to be negative for the current year-to-date (YTD). An error message is now displayed at the Review pay batch stage when you attempt to close the pay batch if closing the pay batch would result in negative YTD gross earnings for one or more payees in the batch. The error message identifies the affected payees, as shown in Figure 1 below.INSERT SCREENSHOT!
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Figure 1: Close pay batch negative YTD earnings errorPay Batch Negative YTD Earnings Error
If this error message is displayed, the following can be done before attempting to close the pay batch again:
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If a payee has repaid the overpayment directly, such as by refunding the overpayment in cash, then a balancing payments adjustment batch should be processed to adjust the payee’s YTD earnings. If the overpayment related to a prior financial year, the balancing payments adjustment pay batch must be for a period in the relevant, prior financial year. |
Benefits
This enhancement facilitates compliance with statutory reporting requirements whereby the ATO will reject Single Touch Payroll (STP) submissions if a payee’s gross earnings for a financial year are reported as negative. By preventing a pay batch being closed if the transactions in the pay batch would result in negative YTD earnings, STP submission rejections due to negative aggregate YTD gross earnings are prevented.
Configuration
No configuration required.