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Correct a pay run mistake in Xero STP

Posted by: Eye on Books on 19 Feb 2019 | 0 Comments
Uh oh! You've make a payroll mistake AND already filed the details with STP in Xero.  What do you do now?

Related blog categories: XERO, Bookkeeping, Payroll, Single touch payroll, STP


Single Touch Payroll involves reporting your employee pay and super details to the ATO after each and every payroll.  But what if you've reported, and then discovered you've paid your employee incorrectly?  It's already been reported to the ATO, what should you do to fix it?

Well, really, it's not that big a deal.  You fix it almost the same way you would have fixed a payroll error before STP came along.  It all comes down to what the mistake was, and when you discover your mistake

If you discover a mistake in a pay run that you've already filed with STP, you must correct it within a certain time frame.  The ATOs provided a short guide on correcting an STP pay event.

  1. If you haven't paid your employee's yet, then simply revert th epay run to draft, correct your payroll mistake, then re-post the pay run and file your STP report again
  2. If you've already paid your employees (albeit incorrectly), then just like prior to STP you can either;
    1. Prepare a backpay or unscheduled pay run to fix the mistake and file it with STP
    2. Or simply correct the mistake on the next pay run, post the pay run and file it with STP

 


If you haven't paid your employee's yet ...

Then simply fix your incorrect pay run, by un-posting it, fixing it, and then re-posting it again. (Don't forget to pay your staff!!!)  The simply re-file with STP.  IE;

  1. Revert the pay run to draft
  2. Correct your mistake.  Just adjust your employees pay to what it should be
  3. Re-post the pay run, clicking Yes to confirm
  4. File the pay run with STP by clicking File then File Now
  5. PAY YOUR EMPLOYEES!!

 

if you spot the mistake and need to fix quickly

Prepare a backpay or unscheduled pay run, then file that one with STP, and pay your employee the difference

  1. Start an unscheduled pay run (a pay run outside the usual schedule)
  2. Finish the pay run, and post it
  3. File the pay run with STP, click File, then click File Now
  4. Pay your employee the back pay

 

If the mistake is non-urgent

Then simply fix it on your next pay run.  If it's over/under pay to your employee, add it to their next pay run, and then file that one with STP

  1. On the due date, start your next scheduled pay run like normal
  2. Correct your mistake.  Add in an extra pay item to add on or deduct pay as appropriate
  3. File the pay run with STP, click File, then click File now
  4. Pay your employees like normal


If you're finding that you're making mistakes often on your payroll, or if it's all simply too difficult, then get our payroll experts on the case.  We'll take care of your payroll, ensure you're compliant, and let you focus on the more important things in life.  Contact us to see how we can help!


 

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