What is a pay event?
A pay event lodges your employees' year-to-date (YTD) gross payments, tax withheld, allowances, deductions and super information to the Australian Taxation Office (ATO) as part of Single Touch Payroll.
You can create a pay event after finalising a pay run. It's recommended that you lodge the pay event on the day of, or before the employee pay date.
Haven't set up STP yet? Start here.
Create a pay event
In order to create a pay event, you must first enable STP and then finalise a pay run. You'll now have the option to either lodge a pay event immediately or at a later date.
If you select Create pay event manually at a later date, the pay run will be completed without a pay event being sent to the ATO.
When you are ready to lodge the pay event:
- Go to Payroll and then select Employees.
- Select the Pay Runs tab.
- Select the appropriate pay run.
- Select the Lodge Pay Run with ATO button.
You will now be taken to the Pay Event lodgement page.
A list of all employees with payment details attached to that pay run will appear on the screen along with their year-to-date pay information.
- Employees who have changed between a working holiday maker (Type: H) and a non-working holiday maker (Type: S) during the financial year will have a row of data per tax change.
- Terminated employees who have received an employment termination payment (ETP) will still appear in the event with the Is Final checkbox automatically ticked, indicating that they won't receive any more updates for the rest of the financial year.
Can I edit any information contained in a Pay Event?
There are only two items that can be edited in a pay event – Reportable Fringe Benefits Amount (RFBA) or Is Final.
To edit an employee RFBA:
- Select the pencil icon under the RFBA column for the specific employee.
- Enter the gross RFBA amount and then Save.
If an employee has terminated employment and a termination pay has been processed, the 'Is Final' checkbox will be ticked automatically.
If the employee has not been terminated within a pay run and there will be no further payments for that employee in the financial year, you can tick the Is Final checkbox. This will indicate to the ATO that no further payments for this employee will be made.
What to do if the YTD figures in the Pay Event are incorrect
The figures that show up in a Pay Event are calculated by adding up all finalised pay runs during the financial year. If the figures don't add up, it is recommended to check the Detailed Activity Report to find out if there are missing or duplicated pay runs that could be causing it.
To access the Detailed Activity Report:
1. Within Employees, select the Reports tab.
2. Under the Payroll column, select Detailed Activity Report.
3. In the Date range drop-down menu, select Financial year.
4. Select Run report.
Expand the report to see a breakdown per employee. Select the employee name to see a pay run breakdown and identify individual pay runs that could affect the total earnings.
Lodging a Pay Event
The steps to lodging a pay event are different depending on your ATO Settings:
Content sourced from KeyPay.