Correct STP YTD Amounts

Reasons for correcting amounts and how to create the Single Touch Payroll (STP) file that will correct YTD amounts.

Reasons to use ‘Fix YTD’ rather than ‘Full File Replacement’:
  • An e-file with one or more errors is not grossly defective – nearly all the data is perfectly correct – and therefore a full file replacement is unwarranted.
  • Only employee YTD amounts need correcting, not employer-level amounts.
  • You prefer to send the corrections to the ATO right away rather than wait until the next pay event that would automatically pick up the corrected amounts for the affected employees.
Use case examples of 'Fix YTD' submission:
  • You discover some incorrect amounts for one (or a few) employees in a particular pay period after having already submitted the e-file for that pay event. After correcting the error (including a ledger update), you prefer to correct the record(s) immediately at the ATO rather than wait until the next pay event, so you generate a Fix YTD submission e-file and lodge it with the ATO.
  • You have learned that a particular employee's accumulated amounts for the year are incorrect. After making corrections in Vista, you have a discrepancy between amounts for the employee in Vista and what you have reported via STP. You generate and lodge a Fix YTD submission e-file in this case in order to correct the record promptly at the ATO.
  • You discover an instance of incorrect ATO Category values (or subvalues). In this case, amounts in the STP e-file are correct, but were categorised incorrectly and therefore were misreported in the e-file. You correct the payroll setup and generate a Fix YTD submission e-file and lodge it with the ATO so that the amounts are correct at the ATO sooner than the next pay event.
This topic covers the steps to do the following:

  • Generate STP data - this automated process gathers and synthesises existing payroll data and places it in the PR STP Process form, including the Employees tab.

  • Verify the data - you have an opportunity to verify the data in the Info tab and in the Employees tab (year-to-date amounts as at the date when you generate the amounts for the submission).

  • Create the STP e-file - this automated process uses the synthesised data to create a file that is acceptable to the ATO.

  1. Generate the STP Data.
    1. In the PR STP Process form, in the Tax Year field, enter the tax year or press F4 to select from a list.
    2. In the Submission field, enter '+' to create a new record.

      The system inserts information from the HQ ATO Tax Years form. You can opt to change any default values.

    3. Click Generate Submission Data.

      The PR STP Generate Data form appears.

    4. In the Submission Data Format field, select the data format to use.
      • STP Phase 1 - Select this option if you are generating submission data for tax year 2021 or earlier.
        Note: You can also select STP Phase 1 to generate submission data for tax year 2022 or 2023 until you are ready to use STP Phase 2. However, once you switch to using STP Phase 2 and submit your data to the ATO, you can no longer use STP Phase 1 for 2022 or later.
      • STP Phase 2 - Select this option if you are generating submission data for tax year 2024 or later.
        Note: You can also select STP Phase 2 to generate submission data for tax year 2022 or 2023, if you are ready to make the switch. However, once you create a submission using STP Phase 2 and submit your data to the ATO, you can no longer use STP Phase 1 for tax year 2022 or later.
    5. Under Submission Options, select Fix YTD.
    6. If you want to create and lodge a submission for a single employee, enter the Employee number in the Employee field.

      If you want to create and lodge a submission for all employees that have been paid in the tax year, leave the Employee field blank.

      If you want to create and lodge a submission for more than one employee but fewer than all employees that have been paid in the tax year, you must create and lodge one submission for each applicable employee.

      Tip: There is no harm in creating and lodging a 'Fix YTD' submission file that happens to include employees who are not in need of having their data adjusted/corrected.
    7. In the Date field, enter the "as at" date you want to attribute the submission to.
      Note: Any entry in the Date field does not determine which payroll data the system includes in the submission. When using submission type F - Fix YTD, the system includes all YTD amounts paid since 1 July (or 1 April, for fringe benefit amounts).
    8. Click Generate.

      The system gathers YTD payroll data and provides a confirmation message.

    9. Dismiss the confirmation message.

      The system closes the PR STP Generate Data form and returns to the PR STP Process form, where it populates fields relevant to a 'Fix YTD' submission type on the right side.

  2. Verify the data that the STP process has gathered.
    1. Select the Info tab and review the employer-level Payee Count value for accuracy.
      Note: Total Gross Payments and Total PAYG Tax Withheld amounts are always 0.00 in any Fix YTD submission. Those amounts, when present in submissions of other types, pertain to a specific pay date, which is not relevant for a Fix YTD submission.
    2. Select the Employees tab and review employee-level values for accuracy.
    3. Double-click any employee record to view more detailed information.
      Note: If you discover errors in the employee data, you can opt to make manual corrections in the PR STP Employee form, but it is preferable for the integrity of the ongoing STP reporting process that you correct the underlying data in payroll history or payroll configuration and then re-generate the submission's data to take advantage of the corrections.
      Depending on the source of the erroneous data, you may need to do one or more of the following:

      • re-categorise earnings codes in the PR Earnings Codes form

      • re-categorise deduction or liability codes in the PR Deductions/Liabilities form

      • make manual adjustments of accumulated payroll amounts in the PR Employee Accumulations form

      • make corrections in the PR Timecard Entry form, re-process payroll, re-issue payments to affected employees (if needed), and re-run the ledger update

      Regardless of your remedial approach, the next steps are:
      1. revisit the same submission record in the PR STP Process form and re-generate the submission data. The system removes the previous data for the submission and generates new data.
      2. verify the new values and resume the process.
  3. Create the STP file.
    1. In the Signatory field, enter your name.
    2. In the Date Signed field, enter today's date.
    3. Click Tick the box to complete your declaration.
      The system enables the Create E-File button while disabling nearly all other fields.
    4. Click Create E-File.
      The system opens the PR STP Create E-File form. It also creates the e-file, runs it through a validation process, and prompts you to save it.
      Note: If the system encounters any validation errors, instead of prompting you to save, it displays the validation errors. To make corrections, make note of the errors, close the PR STP Create E-File form, and in the PR STP Process form, click Untick the box.
    5. Save the file and close the PR STP Create E-file form to return to the PR STP Process form.
      On the right side of the form, the system populates additional fields relevant to this submission.

When you lodge this 'Fix YTD' e-file, the ATO updates the employees' income and withholding information for the year with the data from your submission.

To lodge your submission, retrieve the file from the location you saved it and upload it according to the instructions provided by Ozedi. Learn more about Ozedi.

After you have lodged your e-file with the ATO, revisit the PR STP Process form, select your submission, and change the Status value from 4 - E-File Created to 5 - E-File Lodged. This effectively locks down the submission and serves as an indication that it should not be edited or deleted. If any subsequent changes or corrections are needed, then you must create and lodge a new 'Replacement' e-file.