Reason: This event cannot be the first lodgement for the financial year. Another event that does not include all employees marked as 'is final'

Hi richardyee,

Thanks for posting in the Community!

Let me share with you some information on the error you're getting when trying to lodge a finalisation/update event. You'll get this error if you are attempting to lodge a finalisation event or update event where all employees are marked as Is Final as your first STP lodgement for the financial year. If you have finalised pay runs for the financial year and have not lodged these pay runs via STP, then you must lodge each pay run prior to starting the finalisation process.

Here's how to lodge a finalised pay run with the ATO:

1. Go to Employees or Payroll tab.
2. Go to Pay Runs tab.
3. Select a pay run.
4. Select Lodge with ATO.

Once done, you can then return to lodging the finalisation event. If you are still seeing the validation warning in the event just refresh the data by clicking on Actions button and select Refresh data. 

If you have no finalised pay runs for the financial year as you've recently move from another payroll system and only opening balances to report, you must first create an update event but not mark all employees as Is final. Once the update event is successfully lodged, you can then return to lodging the finalisation event. 

For your reference, you can also check this article: Troubleshooting validation warnings for STP Events.

Let me know if you have any other questions, we're here to help. Have a great day!