Amending Reported STP Data for a Prior Financial Year (AU Only)

Description

Enhancements have been made to allow correction of payees' STP data that has already been reported for a prior, finalised financial year. This is known as amending a prior financial year and it caters for situations such as the following:

adjusting the reported gross earnings of a payee who was overpaid in a prior financial year and has refunded the overpayment in the current financial year
correcting a payee's reported payee type (i.e. payee was reported as Labour Hire instead of Individual Non Business or vice-versa)
correcting a misclassification of a payment (e.g. an allowance was paid and reported under the wrong allowance type)
correcting a payee's name or contact details
correcting a payee's tax details, such as tax file number or tax status.

A prior year amendment can be done by processing a balancing payment adjustment batch for an adjustment period in a prior financial year. When you attempt to create a balancing payments adjustment batch that adjusts a period in a prior financial year, the payment date of the pay batch defaults to 30 June of the corresponding financial year, and cannot be changed to any other date. This is highlighted in the example below.

Defaulting the payment date to 30 June of the financial year into which the adjustment period falls, allows the adjustment to update what has previously been reported for the prior financial year, when the balancing payment adjustment batch is submitted via STP.

Balancing payment adjustment batches do not trigger a payment (i.e. no EFT file is generated). Therefore, the 30 June payment date is used purely to allow the update of the previously finalised STP data, for the relevant prior financial year.

A balancing payments adjustment pay batch should only be processed and submitted via STP to amend a prior financial year if the prior financial year has already been finalised by submitting a STP EOFY batch for the pay company of the payee who is subject to the amendment. Otherwise, the STP EOFY batch may override what was reported when the balancing payments adjustment pay batch was submitted via STP. Note that the status of the STP EOFY batch must be Completed.

For more information, see Making Amendments to Information Reported Through STP.

Benefits

This enhancement allows you to comply with ATO requirements whereby an employer is required to report corrections to a payee's reported STP data in the next pay run or within 14 days of becoming aware of an error.

Configuration

No configuration required.