Single Touch Payroll - Updated Event or Payroll Event
I recorded a payroll (paid and reported via STP), then a few days later, realised there was some error on one payroll (wrong amount). I reversed the wrong payroll, and recorded the pay again with the correct amount with the original date of payment (i.e. past-dated), then reported as "Updated Event" via STP.
Now I am processing BAS for the quarter, and I find the BAS has wrong prefilled amount for W1 (total salary) and W2 (PAYGW), because reporting as "Updated Event" updates only YTD figures and does not send the gross and PAYGW amounts. I read the MYOB community help, and understand that I can just manually correct the prefilled figure on BAS.
My question is --- When I make similar payroll corrections in the future, should I report them as "Pay Event", or "Update Event"? As "Update Event" resulted in wrong prefilled amount on BAS, I thought I would use "Pay Event" in the future, but then I found the MYOB support page saying I should use "Update Event" for past-dated pays --- See Example 1 on the page below.
I appreciate if someone could let me know which is the correct way.
Thanks.
Mami
Hi mamit
An Update event is used when you are wanting to correct employee YTD amounts previously reported and is focused purely on the employee's Income Statement. It is also used for things like Finalising the STP and end of year (making Income Statement Tax Ready).
A Pay Event is used when reporting the payment of a wages etc to your employees. The information sent is the same as for an Update Event, however it also includes the W1 and W2 amounts for this payrun. The ATO use these W1 and W2 amounts to prefill online Activity Statements. The ATO accumulates the W1 and W2 for the reporting period.
Employee YTD totals are sent with every Pay Event and Update Event. The ATO replaces all previous YTD totals each time an STP Report is submitted, it does not accummulate.
After reporting the initial pay as a Pay Event, you reversed that. Once the reversal was reported, the W1 and W2 amounts previously reported for this employees were also reversed. So when you processed the adjusted pay for this employee, it should have been reported as a Pay Event.
MYOB confuses things by defaulting to an Update Event without consulting you whenever the Payment Date is no today's date, so some assume this is the correct approach. Sometimes it is, sometimes it isn't. Spend some time reading the forum, you will find many have been caught out by this, complaining about $0 Gross and $0 PAYG being reported.
Regards
Gavin
