I just need a pointer as to how I find out who/ where to go for an answer to the below problem which you may or may not know yourself:-
A client uses the payroll system which uploads weekly the payroll details on the STP2 (Single Touch Payroll) method. It was converted from the former STP1 system in March 2023 - last financial year.
Due to a misinterpretation of the ATO parameters for filling in the document or file, any employee who received a 17ยฝ% Leave Loading did not have the LL added into the collector field for the 2022/23 annual gross, even though the loading had been reported separately in the period it had been paid with the appropriate withholdings of tax made and every subsequent payrun upload to the end of the year.
An external accountant found this discrepancy for one employee when it was noticed that the printed PAYG summary (no longer necessary but we ask that it be done anyway) and the record on the employee's pre-filled data did not match for the total of the gross pay. It now appears that this applies to 7 employees.
This meant that the ATO's record was not amended at the time of lodgement of the annual tax return resulting in a lower gross and therefore a likely inappropriate refund.
There are some 6 or 7 employees who we expect will have lodged their returns without the Leave Loading of amounts varying between $90 - $1,200 and perhaps a refund of $30 - $250 too much.
This problem has been rectified for the current financial year.
The employer needs to re-run the 2023 financial year's PAYG summaries to correct the records at the ATO and advise employees that that has happened.
The main question is:-
Will the employees need to lodge amendments to their 2023 returns or will they just need to lodge the 2024 returns in the next few weeks with the discrepancy picked up and adjusted in this year's return?
A second query has arisen in May 2024 where the software provider's server crashed and was being reinstated over two pay weekly periods. As a result, the company's records show correctly that 5 pay periods with 5 occasions of withholdings were included for the May IAS yet the ATO's records now only show 4 pay periods and 4 occasions of withholdings were included. Each subsequent STP2 lodgement shows the correct weekly pay records for the year from July 1, 2023 per individual employee as well as the correct ytd figures for gross, tax withheld and the myriad of other info collected in this process.
The question is:-
Does the employer just pay the correct withholdings on the IAS (5 instances) and it will come out in the wash at year's end or does something else need to happen? It will appear to be an overpayment at the ATO which is not correct of course in light of the above.
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