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.
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