Correct the information included in an STP Submission

No matter what you call them, changes to a previously reported pay run are called " Fixes.” Follow the instructions below that are most appropriate for your particular situation.

• Scenario 1 - The Pay Run Dates were incorrect when sending the STP Submission.

• Scenario 2 - Payee was paid correctly, but an STP Reported Amount was incorrect.
• Scenario 3 - Payee was underpaid.
• Scenario 4 - Payee was overpaid.
• Scenario 5 - Payee was STP Reported and physically paid when they should not have been.
• Scenario 6 - Payee was STP Reported but not physically paid when they should not have been.
• Scenario 7 - Payee was omitted when they should not have been.
• Scenario 8 - Payee has been physically paid but not STP Reported.
• Scenario 9 - Employer SG (Superannuation Guarantee) is not accruing.
• Scenario 10 - Employer SG (Superannuation Guarantee) is accruing, and it shouldn't be.

Scenario 1 - The Pay Run Dates were incorrect when sending the STP Submission.

To correct a pay run that has been STP Reported with an incorrect Period Start, Period End, and/or Pay Day Dates, you can either process a Missed Pay Run (if the Pay Day Date has passed) or an Out of Cycle Pay Run (if the Pay Day Date is current or future).

Once the previous pay run has been completed, another Pay Run can be processed using the correct dates. You can either process a Missed Pay Run (if the Pay Day Date has passed) OR an Out of Cycle Pay Run if the Pay Day Date is current or future.

Scenario 2 - Payee was paid correctly, but an STP Reported Amount was incorrect.

To correct an amount that has been STP Reported and is not the result of an underpayment (Scenario 3) or overpayment (Scenario 4), you can either process a Missed Pay Run (if the Pay Day Date has passed) OR an Cycle Pay Run if the Pay Day Date is current or future.

1. After creating the Missed or Out of Cycle Pay Run and selecting the required Payees, choose the first Pay Type incorrectly processed in the previous pay run when composing the Payees Pay.
2. Change the quantity to negative for the number of hours you paid.
3. Ensure the Rate and Total are correct.
4. Then, press the TAB key on your keyboard or select the + button.
5. Select the Pay Type that should have been selected in the previous pay run.
6. Change the Quantity to match the negative pay type.
7. Ensure the Rate and Total are correct.
8. Then, press the TAB key on your keyboard or select the + button.

👉 If completed correctly, the Payee's Pay should look similar to the below example.

👉 If you are correcting the Employer SG amount

1. Select the Employer SG Adjustment Pay Rate.
2. Enter the Rate and ensure the  Total is correct.
3. Then, press the TAB key on your keyboard or select the + button.

👉 If you are correcting the PAYGW amount

1. Select the PAYGW Adjustment Pay Rate.
2. Enter the Rate and ensure the  Total is correct.
3. Then, press the TAB key on your keyboard or select the + button.

👉 If you are correcting the RESC amount

1. Select the RESC Adjustment Pay Rate.
2. Enter the Rate and ensure the  Total is correct.
3. Then, press the TAB key on your keyboard or select the + button.

Scenario 3 - Payee was underpaid

The procedure for correcting an underpayment depends on when it was discovered and what Financial Year it relates to. An underpayment is typically corrected within an Out of Cycle Pay Run as the Pay Day Date is current or future.

1. After creating the Out of Cycle Pay Run and selecting the required Payees, choose the relevant Pay Rate within Back Payments when composing the Payees Pay.
2. Change the Quantity and Rate if required.
   🎯 If the Rate is incorrect, either the Rate Per Hour set in the Payee Master File or the Pay Rate $ (or % of Rate Per Hour) may require updating.
3. Then, press the TAB key on your keyboard or select the + button.
4. When the Back Payments Alert (Modal) is displayed, select either Less than 12 months overdue OR Equal to or more than 12 months overdue.   
   1. If Less than 12 months overdue is chosen, select Current Financial Year OR Previous Financial Year.
      👉 If Current Financial Year is chosen, a list of Pay Runs will be displayed. Select the Pay Periods the underpayment relates to for the correct calculation of PAYGW, then select Ok.
   2. If Equal to or more than 12 months overdue is chosen, and the underpayment is
      👉 less than $1,200.00, there are no other options required; therefore, select Ok.
      👉 equal to or more than $1,200.00, enter the underpayment amount into the relevant Financial Year Field (e.g., if the underpayment occurred on 15th August 2020, the amount would be entered into 2021), then select Ok.
5. Once completed, select Ok.

Scenario 4 - Payee was overpaid.

An overpayment is typically corrected as soon as it is identified by processing an Out of Cycle or Missed Pay Run.

If the overpayment was identified in the same financial year it was paid, you will need to view Process (Step 3) for the original pay run to confirm the PAYW amount calculated. This will be required when completing the below.

1. After creating the Out of Cycle OR Missed Pay Run and selecting the required Payees, 
2. Enter the Payees Pay as it should have been, and write down the amount displayed in PAYGW.
3. Refer to the PAYGW Amount displayed in the Process Page for the Posted Pay Run and manually calculate the difference between the two amounts.

4. Add the incorrect payments as a negative amount.

5. If there was a difference between the PAYGW Amounts, select PAYGW Adjustment (+/-).

   1. Enter the Quantity as -1 and the Rate as the difference between the PAYGW displayed in the prior and current pay runs.

   2. Then, press the TAB key on your keyboard or select the + button.

6. The amount displayed in Net, is the total amount the Payee is required to repay.

7. Continue with the Pay Run Procedure as usual.

8. Discuss and decide the best course of action

   1. If you have decided to recover the overpayment and the Payee
      1. agreed to repay the Net Amount, and you have been advised the amount is  
         1. Subject to FBT, 
            1. Add a Loan Repayment Deduction 
               1. Select Pay Types.
               2. Locate either Salary Sacrifice (to other benefit, OTE) or Salary Sacrifice (to other benefit) by manually scrolling through the Pay Type List, entering the name into Search or using Show Advanced Filters.
               3. Once the Pay Type has been located, select Actions > Copy.
               4. Change Description to Loan Repayment.
               5. Navigate to Reportable Fringe Benefits.
               6. Select the Other Benefit Type as Loan.
               7. Select the Factor.
               8. Select Save.
            2. Add the Loan Repayment Deduction to the Payee's Pay Template.
         2. NOT subject to FBT, 
            1. Add an Overpayment Deduction 
               1. Select Pay Types.
               2. Locate After Tax Deduction by either manually scrolling through the Pay Type List, entering the name into Search or using Show Advanced Filters.
               3. Once the Pay Type has been located, select Actions > Copy.
               4. Change Description to Overpayment Deduction.
               5. Select Save.
            2. Add the Overpayment Deduction to the Payee's Pay Template.
         3. Did NOT agree to repay the Net Amount, and you have been advised the amount is subject to FBT; enter a Debt Waiver Reportable Fringe Benefit Balance for a Payee.
   2. If you have decided against recovering the overpayment and have been advised that the amount is subject to FBT, enter a Debt Waiver Reportable Fringe Benefit Balance for a Payee.

Scenario 5 - Payee was STP Reported and physically paid when they should not have been.

If you need to correct an overpayment for one or more Payees, please refer to Scenario 4 - Payee was overpaid.

Scenario 6 - Payee was STP Reported but not physically paid when they should not have been.

You can either process a Missed Pay Run (if the Pay Day Date has passed), OR an Out of Cycle Pay Run if the Pay Day Date is current or future.

1. Commence a new Missed or Out of Cycle Pay Run
2. Select the required Payees, then select the Payees Status Icon or Step 3 - Process.
3. Choose the first Pay Type incorrectly processed in the previous pay run.

4. Change the quantity to negative for the number of hours you paid.

5. Then, press the TAB key on your keyboard or select the + button.

6. Repeat the above until all required Pay Types have been added as a negative value.

Scenario 7 - Payee was omitted when they should not have been.

Process this correction in an Out of Cycle Pay Run as the Pay Day Date is current or future.

Scenario 8 - Payee has been physically paid but not STP Reported.

If the Pay Run Pay Day is 

• past, the ATO requires this correction to be processed as a Missed Pay Run. 
• current or future period, the correction must be processed in an Out Of Cycle Pay Run.

If the Pay Run has been entered but has not yet been STP Reported, change the Pay Run Type to Missed, then post the Pay Run and notify the ATO.

If the Pay Run has not been entered, Commence a new Out Of Cycle Pay Run OR Commence a New Missed Pay Run.

Scenario 9 - Employer SG (Superannuation Guarantee) is not accruing

• STEP 1 - Review the Superannuation Rules within the Payee Master File and change if required.
  • You may need to temporarily change the Payees Pay Period to Weekly to deselect the Domestic or Private Worker Employer SG Rule / Under 18 Super Rule.
    • The Under-18 Employer SG Rule only allows Employer SG to accrue if the employee works more than 30 hours per week or is equal to or greater than 18 years.
    • The Domestic or Private Worker Employer SG Rule allows Employer SG to accrue only if the employee works more than 30 hours per week.
    • If either Super Rules apply, the Hours for Employer SG Checkbox must be selected in all applicable Pay Rates and Allowances.
• STEP 2 - Review the Employer SG Percentage or dollar amount set within the Payee Master File. 
• STEP 3 - Review the Pay Rate Transaction Report to see which Pay Rates have been used for this Payee.
• STEP 4 - Review the OTE (SGAA) and OTE (Industrial Instrument) Settings within each Pay Rate the affected Payee/s have been paid.
• STEP 5 - Review the Allowance Transaction Report to see which Allowances have been used for this Payee.
• STEP 6 - Review the OTE (SGAA) and OTE (Industrial Instrument) Settings within each Allowance the affected Payee/s have been paid
• STEP 7 - Once the correct rules have been set up as required, please calculate the amount by viewing the Process Page and selecting the X-Ray Icon for the affected Payees within the required Pay Runs to confirm the OTE (SGAA) and OTE (Industrial) amounts and then calculating the relevant percentage.
• STEP 8 - Include the correction in the next pay run per Scenario 2 - Payee was paid correctly, but an STP Reported Amount was incorrect.

Scenario 10 - Employer SG (Superannuation Guarantee) is accruing, and it shouldn't be

1. STEP 1 - Review the Superannuation Rules within the Payee Master File and change if required.
   • You may need to temporarily change the Payees Pay Period to Weekly to deselect the Domestic or Private Worker Employer SG Rule / Under 18 Super Rule.
     • The Under-18 Employer SG Rule only allows Employer SG to accrue if the employee works more than 30 hours per week or is equal to or greater than 18 years.
     • The Domestic or Private Worker Employer SG Rule allows Employer SG to accrue only if the employee works more than 30 hours per week.
     • If either Super Rules apply, the Hours for Employer SG Checkbox must be selected in all applicable Pay Rates and Allowances.
2. STEP 2 - Review the Employer SG Percentage or dollar amount set within the Payee Master File. 
3. STEP 3 - Review the Pay Rate Transaction Report to see which Pay Rates have been used for this Payee.
4. STEP 4 - Review the OTE (SGAA) and OTE (Industrial Instrument) Settings within each Pay Rate the affected Payee/s have been paid.
5. STEP 5 - Review the Allowance Transaction Report to see which Allowances have been used for this Payee.
6. STEP 6 - Review the OTE (SGAA) and OTE (Industrial Instrument) Settings within each Allowance the affected Payee/s have been paid
7. STEP 7 - Once the correct rules have been set up as required, please calculate the amount by viewing the Process Page and selecting the X-Ray Icon for the affected Payees within the required Pay Runs to confirm the OTE (SGAA) and OTE (Industrial) amounts and then calculating the relevant percentage.
8. STEP 8 - Include the correction in the next pay run per Scenario 2 - Payee was paid correctly, but an STP Reported Amount was incorrect.