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Lynn_Wiezel
July 6, 2023
Question

STP v Payroll Variance amount

  • July 6, 2023
  • 1 reply
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STP finalisation - I have an STP v Payroll Variance amount and I have identified which employee it relates to. The out of balance amount is the Termination payments made for this employees Genuine Redundancy for Leave Loading and Unused Annual Leave. Can someone confirm these amounts just drop off the STP finalisation report under Total Reportable Gross $ column, and therefore the Payroll YTD Gross earnings $ for this employee do not balance back to STP finalisation figures. All other aspects Super, PAYGW, Sal Sacrifice balance to Balance Sheet and P & L accounts. I would appreciate any advice whether I need to do anything further, or is it just how terminations are reported in these STP finalisation reports for QBO???

1 reply

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IntuitAika
July 7, 2023

Hi LynnW3,

 

Thanks for posting in the Community!

 

Typically, termination payments, including Genuine Redundancy payments, are not included in the Total Reportable Gross $ column in the STP finalisation report. Total Reportable Gross $ usually refers to reportable fringe benefits and additional remuneration components that need to be reported separately for tax purposes. Termination payments are often not considered part of these reportable amounts.

 

Regarding the balance of Payroll YTD Gross earnings $ for the employee, it's expected that the termination payments may cause a variance and not balance back to the STP finalisation figures. Termination payments are typically separate from regular earnings and may not be included in the Payroll YTD Gross earnings $ reported in STP.

 

In addition, when unused leave is paid out on a termination that is classified as ETP or the termination is due to a genuine redundancy, the leave earnings are not to be reported to the ATO 'other paid leave'. Rather, they are classified as either ETP or lump sum payments, depending on the specific scenario.

 

When processing an ETP or genuine redundancy in the pay run, the platform will automatically assign the applicable system pay categories to the associated leave earnings. Additionally, all system pay categories are mapped to the correct payment classification, as per ATO requirements.

 

For more detailed information, you can check this article: STP: Configuring earnings associated to unused leave paid out on termination. 

 

Feel free to post again if you have any other questions, we're here to help. Have a great day! 

 

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