Income incorrectly reported by employer

(Newbie)Newbie

10 Mar 2021

Hi,

My employer incorrectly under reported my earnings to ATO in FY 2018.

I used the PayG (which was also under reporting my income) summary issued to me for filing my tax return for FY 2018.

ATO sent me a letter saying that there is a mismatch in my reported income with the income reported by the employer for FY 2019.

The employer realised the mistake while reporting for FY 2019. The payg summary for FY 2019 issued to me was correct as per the payments made to me for the year.

The employer added the FY 2018 balance amount in my FY 2019 income and reported to ATO.

What should I do for this scenario? Should I correct the income reported by me in FY 2019?

The aproach taken by my employer to report the balance in the next financial year does not look correct to me either since the bank transactions do not reconcile with the amounts reported.

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Most helpful reply

JodieR_ATO

(Community Support)Community Support

11 Mar 2021

Hi @mannisingh,

Usually the employer needs to correct their end of year reporting. The website advises - If you need to amend details after making a finalisation declaration, you should do this as soon as possible by submitting an update event. We will make updated information available to your employee through ATO online. We also recommend that you notify your employee of any changes that might be reflected in their finalised income statement. You must correct errors within 14 days of detection or, if your pay cycle is longer than 14 days (for example, monthly), in your next regular pay event.

When you've submitted the update event with the correct details and the finalisation indicator, revise the PAYG withholding information (labels W1 and W2) on your activity statement for that period. You can amend finalised information reported through STP up to five years after the end of financial year.

You may speak to your employer and advise them of the link we have provided here.

If they refuse to change anything you can still lodge an amendment for the relevant year. If the NOA was issued more then 2yrs ago, you will need to lodge an objection to the 2yr time frame when lodging the amendment.

Links-

Amendments after finalisation. - Employer

Request for an Amendment and time limits.

All the best.

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