How do I produce payment summaries before opting in to STP?
This can be done through Payroll > Employees > Payment Summaries. You can check out the full process on the Xero Central article.
Do I need to produce/can I produce payment summaries once opted in to STP?
When an organisation is opted in for STP, they're no longer able to produce payment summaries. Instead, employees can access these through their MyGov accounts.
Customers need to run both the Payroll Activity Summary and the General Ledger report, and ensure amounts are matching in the relevant accounts. The Xero Central article lists which accounts should be matching with which sections of the payroll report.
My employee was terminated before I opted into STP. How do I do their finalisation?
Terminated employees will appear when completing the STP finalisation, as long as they've had earnings included in pay runs within the financial year.
I have opted into STP, why can't I preview the ETP summary?
ETP payment summaries are treated the same as the normal payment summaries. Once opted in to STP, these can no longer be produced, and employees will instead get this infomation through MyGov.
How do I fix a pay run included in the wrong financial year?
This needs two unscheduled pay runs, one to reverse everything on the incorrect date, and one to process it all again on the correct date. There are a few considerations, and this process can get complex so submit a case to support any time you need help.
How do I make changes to employees earnings once I've finalised with STP?
You simply need to make the adjustment in an unscheduled pay run > file this pay run using STP > complete the finalisation process for that employee again. Full steps are covered under 'Fix an employee's finalised STP data' in the Xero Central article.
We have found discrepancies in our general ledger at the end of financial year for Payroll, how do i fix this?
It'll depend on the discrepancy. First, check that you haven't posted any manual journals to the payroll accounts, whether you've included any negative amounts in pay runs, and, if you have started on Xero midway through the year, that your opening balances and conversion balances were entered correctly.
If you're having trouble finding the discrepancy and what it relates to, we recommend that you look at the reports over a shorter time frame to see at what point it became unbalanced. This is another case that can become complex so submit a case to support if you need further assistance.
Opening balances currently aren't included through STP. If you've been using another software package to lodge STP previously, you need to finalise through STP on there, and then start using STP through Xero - as the details are already lodged through your old software, you won't need to do this again in Xero.
If you are coming from non STP software/not using STP software, you can use your current software to produce part year payment summaries instead - this will also mean you won't need to report the opening balances through STP in Xero, as this will already be with the ATO. If you are unable to use your old software to do either of these, then you'll need to include the opening balance amounts within pay runs, rather than an employee's Opening Balances tab.
How do I report RFBA once opted in to STP?
This can be manually entered while doing their STP finalisation. When editing each employees finalisation, you'll be able to enter the RFBA amounts as required. Full steps are available on Xero Central.
How do I report RFBA before opted in to STP?
This can be entered when reviewing an employee's payment summary. Full steps are available on Xero Central.
How do I report lump sums once opted in to STP?
Once opted in to STP, lump sums need to be processed through pay runs. If the lump sum is related to a redundancy payment, Xero will automatically report leave as lump sum A. If you use the redundancy pay item, Xero will automatically report the amount on this pay item as lump sum D. For other lump sum types, or for adjustments, you'll need to use adjustment pay items. Full steps are available on Xero Central.
How do I report lump sums before opted in to STP?
This can be entered when reviewing an employee's payment summary. Adjusting the lump sum fields will reduce the employee's gross amount automatically for customers. Full steps are available on Xero Central.