STP Negative YTD Amount
In this enhancement of Single Touch Payroll (STP), for the negative YTD amounts:
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The payment types are handled using the derived aggregated formula provided by ATO while processing STP
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The PAYG/ Superannuation must be zero or positive only
Visit this link to know more about handling STP Negative YTD Amounts
How to Handle Negative YTD Amounts Using Derived Aggregated Formula?
In this version, the negative YTD amounts are handled using the derived aggregated formula provided by ATO while processing STP. The key concept of STP Phase 1 was that the payee YTD amounts can never be negative. With the introduction of disaggregation of gross in STP Phase 2, some payroll systems while calculating corrections may produce a negative YTD amount for the various payment types. To accommodate this modification, the ATO will allow reporting of negative YTD amounts for the following payment types:
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Gross Amount PAYEVNTEMP258
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Paid Leave Payment Amount PAYEVNTEMP270
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Payee Allowance Amount PAYEVNTEMP62
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Overtime Amount PAYEVNTEMP263
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Bonuses and Commissions Amount PAYEVNTEMP262
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Salary Sacrifice Amount PAYEVNTEMP267
While each payment type permits negative YTD amounts, the sum of the payment types (items 1-5 from the above list) less the Salary Sacrifice YTD amount (item 6 from the above list ) must be zero or a positive amount.
This means that for each income type the total of Gross, Paid leave, Allowances, Overtime, Bonuses, and Commissions, less Salary Sacrifice must be zero or positive. Using this formula, your outcome value will ensure you meet this requirement.
When you process the STP data while applying the above formula, this formula can produce a Positive or Zero value as an outcome or a Negative value as an outcome.
Positive or Zero Value as an Outcome
The system will allow negative values for the above listed YTD items. For Example: Gross Amount, Allowance Amount, Overtime Amount, Bonus/Commission Amount, Paid Leave Amount, minus Salary Sacrifice Amount. If the outcome value is positive or zero, the negative value for any payment type will be allowed. The figure below shows the bulk file with a negative value in the Overtime Amount as the outcome of the formula was a positive/ zero value.
The system will convert the negative YTD value to '0' in the generated member and bulk file. In this case, the system will generate a report for the selected period ending by clicking Process Period Pay Event Data (Mandatory) as shown below:
Report for ATO Derived Aggregated Gross Income Rule Violation
The report is generated in case the ATO derived aggregated gross income rule has an outcome value as negative.
On clicking the ATO derived aggregated gross income rule violation report link, the member(s) details for whom ATO derived aggregated gross income validation rule failed are shown.
This report shows the Member ID, Member Name, Gross Amount, Allowance Amount, Overtime Amount, Bonus/Commission Amount, Paid Leave Amount, and Salary Sacrifice Amount. The payment types with a negative value will be highlighted in Red and will be reported as '0' to the ATO (as the outcome of the formula is a negative value).
Note that if the outcome is negative, the payment types with a negative value will be reported to ATO as '0' while processing the STP but this negative value of the payment types will be retained in the application database.
The figure below shows the bulk file with a negative value converted to '0' in the Overtime Amount as the outcome of the formula is a negative value.
As per the ATO validation rule, the YTD amount for PAYG/ Superannuation must be zero or positive only and cannot be negative YTD.
While processing STP, on clicking the Process Period Pay Event Data (Mandatory), the report is generated in case the YTD amounts for PAYG/ Superannuation are negative. Click the Tax/Superannuation YTD amount reporting rule violation link and the report of the member(s) details for whom the Tax/ Superannuation YTD amount reporting validation rule failed is shown.
Report for Tax/ Superannuation YTD Amount Reporting Rule Violation
The report shows the Member ID, Member Name, YTD PAYG, and YTD Superannuation. The payment types with a negative value will be highlighted in Red and will be reported as '0' to the ATO in the generated member and bulk files.
Note that the negative value will be reported to ATO as '0' while processing the STP but this negative value will be retained in the application database.
For Example: If the YTD PAYG or YTD Superannuation has a negative value, this value will be reported to ATO as '0'. The figure below shows the bulk file with a negative value converted to '0' for the YTD PAYG for the member.
Application Options - Mandatory Fields
As an STP Phase 2 enhancement in the Application Options screen, a few fields are declared mandatory in the Tax Declaration sections i.e. Tax File Declaration Parameters and Tax Department End of Year Parameters tabs respectively.
Tax File Declaration Parameters
In the Tools → Application Options → Tax File Declaration Parameters → Payer Record tab, the Country, Contact Name, and Contact Email fields are declared mandatory as shown in the figure below.
In the Tools → Application Options → Tax File Declaration Parameters → Intermediary Details tab, the Contact Name field is declared mandatory as shown in the figure below.
In the Tools → Application Options → Tax Department End of Year Parameters → Payer Record tab, the Country, and Contact Name fields are declared mandatory as shown in the figure below.
Zero Out Members ATO Record
The Zero Out Members ATO Record feature is used:
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If there are some amendments required in the End-of-Year STP submitted to the ATO, the Zeroing out is used to resubmit the YTD amounts for all the members in the FY as $0
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To alert the ATO that these members YTD amounts per Branch should not be displayed to the Taxpayer (TFN)
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Staff must do a final pay run for the financial year and submit the STP which ATO will display to the taxpayer (TFN)
In the STP Process screen, a new field Zero Out Members' ATO Record is introduced. After completing the STP submission for the financial year end, if the user checks the Resubmit Pay Event checkbox, the Zero Out Members' ATO Record field is enabled.
To submit the Zero Out Members' ATO Record in the event file to ATO:
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In the STP Process screen, select the FY week ending STP submission in the Period Ending Date once submitted to ATO
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Click the Resubmit Pay Event checkbox and the confirmation message appears. Click Yes to resubmit the pay event and the Zero out member’s ATO record checkbox is enabled for selection
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Click the Zero Out Member’s ATO Record checkbox and the Confirmation message appears. Click Yes to continue
Note that when the data is submitted to SSP for ATO submission, the user will not be able to revert the process of Zero Out Member's ATO Record or Resubmit Pay Event.
- Now proceed to generate the data successfully
Note that if the Zero Out Member's ATO Record is checked, the Is this week's Payroll the final payroll for Financial Year flag will be automatically set to ‘No’. This will indicate to ATO that this is not the Final Year-to-date earnings of the members in the selected STP submission.
Once this process is performed, the Staff must do a final pay run for the financial year and submit the STP which ATO will display to the taxpayer (TFN).
Pay Event Header/Employee Files
When Zero Out Member's ATO Record is checked, the PTD amounts in the Header file and YTD amounts in the Employee file will be generated with the value as '0' as shown in the figure below.
Note that:
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All the amounts in the Bulk file created will have the value as '0'
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The Payroll Final indicator will be set to False
Based on the previously submitted Pay Event for the week ending which is ‘Zero Out Member's ATO Record’ as Final STP run for the Financial Year or not, the number of records in the header file and the number of members' data in the employee file will be generated.
Header Pay Event File
Employee Pay Event File
