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How to Lodge an STP reset event to fix incorrectly reported business or employee settings

 

The purpose of an Earnings Reset Event is to allow you to lodge a $0 earnings event via STP for all employees who have been reported with incorrect business or employee details. This allows you to reset what has been reported to the ATO for the employees back to $0 without affecting any pay run data. Once the earnings reset event has been successfully lodged, you then just need to correct the business or employee details and start reporting again as normal.

This article will cover how to fix payroll data already lodged via STP that has been incorrectly reported against an employee, this includes:

  • Using the incorrect employing entity: the employee was assigned to the incorrect employing entity at the time of lodging STP events
  • Using the incorrect ABN: the incorrect ABN were set up in the Business Details, ATO Settings or Employing Entities sections
  • Using the incorrect ABN branch number: An incorrect branch number or no branch number was set up in the ATO Settings or Employing Entities sections
  • Using the incorrect BMS ID: the incorrect BMS ID was set up in the Electronic Lodgement & STP section (located in ATO Settings)or Employing Entities section when transferring over to QuickBooks Payroll powered by KeyPay
  • Incorrect employee STP Payroll ID: the incorrect STP payroll Id was assigned to an employee in the employee’s Opening Balances (STP tab) when transferring over to QuickBooks Payroll powered by KeyPay.

 

How to rectify incorrect lodgements

For all scenarios detailed below:

  • Ensure that you do not correct the issues until after the reset event is successfully lodged.
  • Create and lodge the update event immediately after you have corrected the issues.

Note: If the Create Earnings Reset Event option, is greyed out it means you have not lodged any successful events for that financial year, you cannot create an earnings reset event as there is no information to reset.

  1. Select Employees from the left hand menu
  2. Select the Reports tab
  3. Select Single Touch Payroll (located under ATO Reporting)
  4. Select the dropdown arrow next to Create Update Event and choose Create Earnings Reset Event 
  5. Read the displayed text, then select Continue (Or Cancel if you don't wish to proceed).
  6. Select the relevant  Financial Year, Employing Entity and Employees, then select Create 
  7. Verify the information and then select  Lodge with ATO 
  8. Select Employees from the left hand menu
  9. Select the relevant employee
  10. Select Tax File Declaration from the left hand menu
  11. Select Change next to Employing Entity 
  12. Update the New Employing Entity from the drop-down menu
  13. Select Employee's  Start Date or Custom (if changed which employing entity they worked at a later point in time) from the As of drop-down
  14. Select Change Employing Entity 
  15. Update the Employing entity or any of relevant employees

There is one final step which varies:

  1. Select Employees from the left hand menu
  2. Select the Reports tab
  3. Select Single Touch Payroll (located under ATO Reporting)
  4. Select the dropdown arrow next to Create Update Event and choose Create Earnings Reset Event 
  5. Read the displayed text, then select Continue (Or Cancel if you don't wish to proceed).
  6. Select the relevant  Financial Year, Employing Entity and Employees, then select Create 
  7. Verify the information and then select  Lodge with ATO 
  8. Select Payroll Settings 
  9. Select Details (located under Business Settings)
  10. Update the ABN and select Save 

Note: To update the ABN for an Employing Entity select Employing Entities the Payroll Settings, and select the relevant Entity to update the ABN).

There are two final tasks to complete:

 

Ensure the new ABN  is integrated with the ATO for STP reporting, otherwise,  lodgements will fail. Learn how to enable STP

The final step varies:

Not all business entities have branch numbers by default,  The ATO provides businesses with branch numbers which can be found on the ATO Portal.Notes:

  • If the ABN for an employing entity is  11111111111/003, the branch number is 003. The number before the “/” is your ABN. For more information, you can reach out to the ATO
  •  If the number after your ABN is /001, this means you have not been designated a branch number. Therefore you can just leave the Branch Number fields in your entity settings blank. If you have already entered 001, there is no need to remove it.
  1. Select Employees from the left hand menu
  2. Select the Reports tab
  3. Select Single Touch Payroll (located under ATO Reporting)
  4. Select the dropdown arrow next to Create Update Event and choose Create Earnings Reset Event 
  5. Read the displayed text, then select Continue (Or Cancel if you don't wish to proceed).
  6. Select the relevant  Financial Year, Employing Entity and Employees, then select Create 
  7. Verify the information and then select  Lodge with ATO 
  8. Select Payroll Settings 
  9. Select  ATO Settings (Located under Business Settings)
  10. Update the Branch Number
  11. Scroll down and select Save 

 

 

Note: To update the Branch Number for an Employing Entity select Employing Entities from the Payroll Settings, and select the relevant Entity to update the Branch Number).

There is one final step which varies:

This scenario should only occur if you have transferred payroll systems during the financial year.  An incorrect BMS ID will likely cause duplicate records or overstated earnings being reported to the ATO.If you want to migrate year to date payroll information and use the previous system’s BMS ID to report STP going forward, both the BMS ID and employee STP Payroll Id need to change. If this has occurred please complete the steps related to updating the BMS ID and STP Payroll ID.

  1. Select Employees from the left hand menu
  2. Select the Reports tab
  3. Select Single Touch Payroll (located under ATO Reporting)
  4. Select the dropdown arrow next to Create Update Event and choose Create Earnings Reset Event 
  5. Read the displayed text, then select Continue (Or Cancel if you don't wish to proceed).
  6. Select the relevant  Financial Year, Employing Entity and Employees, then select Create 
  7. Verify the information and then select  Lodge with ATO 
  8. Select  ATO Settings (Located under Business Settings)
  9. Select the Electronoc Lodgement & STP tab
  10. Tick the box  I want to use my previous payroll software’s BMS ID 
  11. Enter continue and select Confirm 
  12. Select Change
  13. Update the BMS ID and select Save

Note: To update the BMS ID for an Employing Entity other than the default select Employing Entities from the Payroll Settings, and select the relevant Entity and tick the box I want to use my previous payroll software’s BMS ID).

Note: If both the BMS ID and STP Payroll ID are incorrect, then you also should follow steps 8-12  on how to change the STP Payroll ID found below.

There is one final step which varies:

This scenario should only occur if you have transferred payroll systems during the financial year.  An incorrect BMS ID will likely cause duplicate records or overstated earnings being reported to the ATO.Note:  By default, QuickBooks Payroll powered by KeyPay uses the employee’s Employee Id as the STP Payroll ID however this can be changed if the BMS ID has been changed, you will not have the ability to update the STP Payroll ID without first updating the BMS ID.

  1. Select Employees from the left hand menu
  2. Select the Reports tab
  3. Select Single Touch Payroll (located under ATO Reporting)
  4. Select the dropdown arrow next to Create Update Event and choose Create Earnings Reset Event 
  5. Read the displayed text, then select Continue (Or Cancel if you don't wish to proceed).
  6. Select the relevant  Financial Year, Employing Entity and Employees, then select Create 
  7. Verify the information and then select  Lodge with ATO 
  8. Select Employees from the left hand menu
  9. Select the relevant employee
  10. Select Opening Balances from the left hand menu
  11. Select the STP tab then select Change 
  12. Update the STP Payroll ID then select Update 

Note: If both the BMS ID and STP Payroll ID are incorrect, then you also should follow steps 8-13 on how to change the BMS ID found above.

There is one final step which varies:

How do I reverse an earnings reset event?

To reverse earnings reset event reported to the ATO, you simply need to lodge an update event for the relevant Pay Schedule. This will resend the current year to date earnings for all employees in that Pay Schedule.

 

Additional Information for the Earnings Reset Event

  • There is no ability to edit the RFBA column. This is by design so all earnings, including previously reported RFBA, are “wiped out”.
  • When an earnings reset event is created after the lodgement of a finalisation event or amended finalisation event employee/s that were included in event/s,  will automatically be marked as Is Final.
  • If you create an earnings reset event for an employee has been terminated in a pay run and the associated pay event was lodged, that employee will automatically mark the employee as Is Final.
  • The Actions button includes the following:
    • Mark all as Is final: this allows you to bulk mark all employees as Is final
    • Mark all as not final: this will appear if all employees are marked as is final and allows you bulk mark all employees as not final
    • Add Employee: use this function if you want to add additional employees to the earnings reset event
    • Request Client Authority: this will appear if the business is using a registered tax/BAS agent to lodge events. As with any event type, you will need to obtain authorisation from your client before proceeding with lodging this event.
  • Excel reports are not available for this event type as there are no earnings to report or reconcile against

Content sourced from KeyPay

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