Forum Discussion

Llewellyn's avatar
Llewellyn
Experienced User
5 years ago

Employees ETP and tax withheld not recorded in STP figures

One of our employees received an ETP for unused RDO's that were paid out when he left. These were taxed at a special rate of 32% as required. Based on the MYOB instructions for recording these paymen...
  • Tracey_H's avatar
    Tracey_H
    5 years ago

    Hi Llewellyn 

     

    The ATO reporting categories need to be assigned according to the ATO guidelines, so the tax on that ETP payment does need to be reported as a deduction with the reporting category ETP - Tax Withheld.

     

    With regard to your BAS, you need to select the ETP - Tax Withheld category in the set up for the W2 field. This will pull that amount into the BAS figures.

     

    Please let me know if you need further help.

Llewellyn's avatar
Llewellyn
Experienced User

Thanks for that Tracey. I've made those changes. Can I just go back and delete the previous payment and re-enter it so that the amounts end up in the right place?

 

Regards, Carl

Tracey_H's avatar
Tracey_H
Former Staff
5 years ago

Hi Llewellyn 

 

You sure can delete and reprocess that payment. If you have any further issues please let me know.

 

If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.

  • Llewellyn's avatar
    Llewellyn
    Experienced User
    5 years ago

    I've just got around to re-doing this persons termination payment after setting up the new categories etc outlined in the links. I was a bit confused re the ETP type options but finally worked out how to make it a type O ETP. I've deleted my original attempts and entered a final (I hoped) correct entry using the correct ETP type. 

     

    But when I download a pdf of the persons payment summary it shows an amount of income and tax for both Type O and Type P. The amount shown as Type O is double the Type P amount (which shouldn't even be there). And the ETP tax payable is still showing up in the deductions column rather than the tax column when I run a Payroll Activity Summary. Something's gone wrong - how can I fix it please? Thanks

     

    Should I attach a pdf of the payment summary to highlight the issue?

    • Tracey_H's avatar
      Tracey_H
      Former Staff
      5 years ago

      Hi Llewellyn 

       

      When you delete and reprocess a termination pay that includes an ETP you also need to delete that ETP from the Payroll Reporting Centre by doing the following:

       

      1. Click Payroll in the command centre
      2. Click Payroll Reporting 
      3. Click Payroll Reporting Centre 
      4. Click Employee Terminations tab 
      5. Find the employee and click the 3 dots next to their name 
      6. Select "Remove ETP" 
      7. Select the duplicate payments 
      8. Once it is removed then process a $0.00 payrun for the employee to update the ATO of the new YTD totals

      That should resolve your first issue. As for the second issue, when you created the ETP Tax Withheld category you created it in the Deductions tab so it will appear in the Deduction column in the Payroll Activity and Register reports. 

       

      Please let me know if you have further issues.

       

      If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.

      • Llewellyn's avatar
        Llewellyn
        Experienced User
        5 years ago

        Thanks Tracey. Is it possible to add a new tax categoryfor the ETP Tax Withheld? The drop down box only shows PAYG Withholding and as far as I can see there is no way to add extra categories. Googling doesn't come up with any answers about whether it can be done. Do I just have to leave the tax on the ETP as a "deduction" and add it to the tax amount when I complete the BAS? Thanks

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