FastTrack360 Version 12 Online Help
Pay Australia > Maintenance - Termination Reason Mapping (v12.17)
- Fiona Sims
- Max Ciereszko
Description
Under Single Touch Payroll (STP) Phase 2 reporting an employment cessation reason will be required when reporting the earnings of a payee whose employment has been terminated.
To support this requirement, configuration has been added to Termination Reason Maintenance in the Payroll Australia module to provide the ability to map the ATO-defined employment cessation reasons to termination reasons that are created in your system.
On upgrade it is important that you map all configured termination reasons (both in use and used in the past, even where flagged as inactive) to the relevant, corresponding cessation reason before you submit any STP batches to the ATO after upgrading.
If you do not map termination reasons to the corresponding cessation reasons prior to STP reporting post upgrade, submissions will be rejected for payees where the un-mapped termination reason has been applied. That includes payees who were terminated in prior periods and have subsequently been paid in an adjustment pay batch.
Termination via Payee Record Employment End Date
On upgrade to 12.17, if a payee’s employment has been terminated by keying an employment end date directly on the Payee record, FastTrack360 will automatically report the cessation reason code C (contract cessation) as the reason for termination.
When a payee’s employment is terminated in this way the cessation reason will not be reported through STP unless either of the following occurs after the employment end date has been set:
The payee is included in a pay batch and the STP report for the pay batch is submitted to the ATO.
The STP EOFY process is run for the payee’s pay company at the end of the financial year. This only applies if the payee has been paid during the financial year in which the payee’s employment end date falls.
Note that if the employment cessation reason needs to be reported and the payee will not receive any further payments or has not received any payments during the current financial year, the payee can be processed in a balancing payments adjustment batch, after the employment end date has been set on their Payee record, without making any payments to the payee in that pay batch. The STP report for that pay batch must then be submitted to the ATO.
Termination via Pay Batch
If a payee’s employment is formally terminated in a pay batch, it is necessary to select the reason for the termination at the Termination pay batch stage. FastTrack360 will report the cessation reason code that is mapped to the selected termination reason.
Benefits
This enhancement provides an agency with the ability to assign a STP Cessation Reason to existing Termination Reasons in order to comply with STP Phase 2 reporting requirements. This functionality removes the requirement for Services Australia to request separation certificates for payees applying for social security payments.
Configuration
To prepare for reporting following upgrade to v12.17, navigate to Payroll > Maintenance > Termination Reason.
When you open the Termination Reason Entry screen you will see a new field labelled STP Cessation Reason. This field will be highlighted as mandatory and must have a reason code assigned to support the new STP Phase 2 reporting requirements. An example of this is shown below.
Search to find existing and previously applied (even where ‘Inactive’) Termination Reasons. Edit to open the Termination Reason Entry screen and assign the applicable STP Cessation Reason code. Select Save to commit the change.
Repeat this process until all relevant Termination Reasons have been mapped.
If you have missed mapping a Termination Reason to an ATO Cessation Code, where you submit to STP an error will be returned “Cessation Reason Code must be provided - CMN.ATO.PAYEVNTEMP.000377”.
Where this occurs, you will need to find the related Termination Reason and map to the appropriate ATO Cessation Code. Once this has been done, the batch can be re-submitted.
Related content
Classification-Public