Reconcile Payroll and STP Data

As a part of your STP finalisation process, you should reconcile your payroll and STP data. This step is important as it helps you keep accurate accounting records and ensures that the data you're sending to the ATO matches your payroll data.

There are 3 possible reconciliation processes, depending on your business.

  • STP 1 & STP 2 Reconciliations - If your business made the transition to STP 2 with foundU, you will have both STP 1 data & STP 2 data. For this EOFY, you will need to run 4 report exports and complete 2 reconciliations. Please refer to both reconciliation processes detailed below. 
  • STP 2 Reconciliation only - If your business commenced payroll with foundU on or after February 27 2023, you will only have been reporting through STP 2 and will therefore have no STP 1 data. Please refer to the STP 2 process only. 
  • STP 1 Reconciliation only - If your business has not yet migrated to STP 2, please refer to the STP 1 process only. 

  Tip: If you find that your payroll and STP data are not reconciling, please refer to the troubleshooting accordion below. Here, you will find the required steps to gain assistance with this. 

STP 1 Reconciliation Process

Run Reports

To reconcile your data you will need to run 2 reports:

  • Advanced Payroll Activity Report
  • STP YTD Report

Both reports can be found by navigating to Reports > Financial

Advanced Payroll Activity Report

  Please note: Businesses that are doing reconciliations for both STP 1 & 2 will need to run the Advanced Payroll Activity Report twice. Once for the STP 1 data and once for the STP 2 data. 

  1. Set your duration to the appropriate timeframe.
    • STP 1 reconciliation only - Set the duration to 'Last Financial Year' (assuming you are running this report after June 30).
    • STP 1 & 2 reconciliation - Select Custom Date Range and input 1 July 2022 - the date before STP 2 transition date.

       Tip: The date of when you completed your STP 2 transition will be displayed in the blue banner at the top of the Financial Reports Centre page. Please review the examples at the bottom of this accordion for more information on your STP transition date.
  2. Group by Office Code & Employee ID (in that order).
  3. To the right, select the following checkboxes:
    • Cash Basis
    • Split Deductions
    • Display Non-Reported STP Amount Separately
    • Separate Superannuation Contribution Types
  4. Select Submit.
  5. Export CSV

STP YTD Report

  1. Set your duration to 'Last Financial Year' (assuming you are running this report after June 30).
  2. Select Submit.
  3. Select Export CSV

STP 2 Transition Date

At the top of the financial reporting page, you will be able to see the date your platform was transitioned to STP 2. This date will be used in the Advanced Payroll Activity report. 

We'll use the image above as an example to highlight how this will be used for your reports. 

  • If a report requires the date of STP 2 transition, this would be the 16 February 2023 in the example above. 
  • If a report requires the date before STP 2 transition date, this would be 15 February 2023 in the example above. 
Reconcile Gross Wages

To reconcile your gross wages, you'll need to calculate various columns of data in both the Advanced Payroll Activity Report and the STP YTD Report and confirm that your calculated totals match. 

If your totals for each report do not match, please refer to the troubleshooting section of this article for the next steps. 

  Gross wages (payroll data) = Gross wages (STP data)

The table below identifies which columns need to be included in your calculation to work out the total for each report. The 2 columns on the left are for the Advanced Payroll Activity Report and should be calculated separately. The 2 columns on the right are for the STP YTD Report and should be calculated separately. 

  Advanced Payroll Activity Report     STP YTD
  Gross Wages     Individual Non Business Gross
+ Non-Taxable Allowances   + Labour Hire Gross
- Non-STP Reported Total   + Working Holiday Maker Gross
= Gross wages (payroll data)   + Foreign Income Gross
      + Lump Sum Payment A
      + Lump Sum Payment B
      + Lump Sum Payment D
      + Lump Sum Payment E
      + Allowance Transport
      + Allowance Car
      + Allowance Laundry
      + Allowance Meals
      + Allowance Travel
      + Allowance Other
      + Job Keeper Payment
      + ETP Code O - Tax Free
      + ETP Code O - Taxable
      + ETP Code R - Tax Free
      + ETP Code R - Taxable
      + ETP Code S - Tax Free
      + ETP Code S - Taxable
      + ETP Code P - Tax Free
      + ETP Code P - Taxable
      + ETP Code D - Tax Free
      + ETP Code D - Taxable
      + ETP Code B - Tax Free
      + ETP Code B - Taxable
      + ETP Code N - Tax Free
      + ETP Code N - Taxable
      + ETP Code T - Tax Free
      + ETP Code T - Taxable
      = Gross wages (STP data)

 

Reconcile PAYG withholding

To reconcile your PAYG withholding, you'll need to calculate various columns of data in both the Advanced Payroll Activity Report and the STP YTD report and confirm that your calculated totals match. 

If your totals for each report do not match, please refer to the troubleshooting section of this article for the next steps. 

  PAYG Withholding (payroll data) = PAYG Withholding (STP data)

The table below identifies which columns need to be included in your calculation to work out the total for each report. The 2 columns on the left are for the Advanced Payroll Activity Report and should be calculated separately. The 2 columns on the right are for the STP YTD Report and should be calculated separately. 

  Advanced Payroll Activity Report     STP YTD
  PAYG Withholding     Individual Non Business PAYGW
= PAYG Withholding (payroll data)   + Labour Hire PAYGW
      + Working Holiday Maker PAYGW
      + Foreign Employment Foreign Tax Paid
      + Foreign Employment PAYGW
      + ETP Code O - PAYG
      + ETP Code R - PAYG
      + ETP Code S - PAYG
      + ETP Code P - PAYG
      + ETP Code D - PAYG
      + ETP Code B - PAYG
      + ETP Code N - PAYG
      + ETP Code T - PAYG
      = PAYG Withholding (STP data)
Reconcile Superannuation

To reconcile your superannuation, you'll need to calculate various columns of data in both the Advanced Payroll Activity Report and the STP YTD report and confirm that your calculated totals match. 

If your totals for each report do not match, please refer to the troubleshooting section of this article for the next steps. 

  Superannuation (payroll data) = Superannuation (STP data)

The table below identifies which columns need to be included in your calculation to work out the total for each report. The 2 columns on the left are for the Advanced Payroll Activity Report and should be calculated separately. The 2 columns on the right are for the STP YTD Report and should be calculated separately. 

  Advanced Payroll Activity Report     STP YTD
  Super Guarantee     Super Liability Amount
+ Salary Sacrifice   + Reportable Employer Super Contribution
+ Employer Additional Super Contribution   = Superannuation (STP data)
= Superannuation (payroll data)      

STP 2 Reconciliation Process

Run Reports

To reconcile your data you will need to run 2 reports:

  • Advanced Payroll Activity Report
  • STP2 YTD Report

Both reports can be found by navigating to Reports > Financial

Advanced Payroll Activity Report

  Please note: Businesses that are doing reconciliations for both STP 1 & 2 will need to run the Advanced Payroll Activity Report twice. Once for the STP 1 data and once for the STP 2 data. 

  1. Set your duration to the appropriate timeframe.
    • STP 2 reconciliation only - Set the duration to 'Last Financial Year' (assuming you are running this report after June 30).
    • STP 1 & 2 reconciliation - Select Custom Date Range and input the date of STP 2 transition - 30 June 2023.

       Tip:  The date of when you completed your STP 2 transition will be displayed in the blue banner at the top of the Financial Reports Centre page. Please review the examples at the bottom of this accordion for more information on your STP transition date.
  2. Group by Office Code & Employee ID (in that order).
  3. To the right, select the following checkboxes:
    • Cash Basis
    • Split Deductions
    • Display Non-Reported STP Amount Separately
    • Separate Superannuation Contribution Types
  4. Select Submit.
  5. Export CSV

STP 2 YTD Report

  1. Select 'Last Financial Year' as your timeframe (assuming you are running this report after June 30).
  2. Select Create Report.
  3. Select Export CSV

STP 2 Transition Date

At the top of the financial reporting page, you will be able to see the date your platform was transitioned to STP 2. This date will be used in the Advanced Payroll Activity report. 

We'll use the image above as an example to highlight how this will be used for your reports. 

  • If a report requires the date of STP 2 transition, this would be the 16 February 2023 in the example above. 
  • If a report requires the date before STP 2 transition date, this would be 15 February 2023 in the example above. 
Reconcile Gross Wages

To reconcile your gross wages, you'll need to calculate various columns of data in both the Advanced Payroll Activity Report and the STP 2 YTD report and confirm that your calculated totals match.

If your totals for each report do not match, please refer to the troubleshooting section of this article for the next steps. 

  Gross wages (payroll data) = Gross wages (STP data)

The table below identifies which columns need to be included in your calculation to work out the total for each report. The 2 columns on the left are for the Advanced Payroll Activity Report and should be calculated separately. The 2 columns on the right are for the STP YTD 2 Report and should be calculated separately. 

  Advanced Payroll Activity Report     STP 2 YTD
  Gross Wages     Exempt foreign income
+ Gross Deduction   + Gross
+ Non-Taxable Allowances   + Overtime
- Non-STP Reported Total   + Bonuses and commissions
= Gross wages (payroll data)   + Directors fees
      + Other paid leave
      + Paid parental leave
      + Workers compensation
      + Ancillary and defence leave
      + Cash out of leave in service
      + Unused leave on termination
      + Cents per kilometre
      + Award transport allowance
      + Laundry
      + Overtime meal allowance
      + Travel and overseas accommodation allowance
      + Tool allowance
      + Task allowance
      + Qualifications
      + Other: Non-deductible
      + Other: Uniform
      + Other: Private vehicle
      + Other: Home office
      + Other: Transport/Fares
      + Other: General
      + Lump sum A: Type R
      + Lump sum A: Type T
      + Lump sum B
      + Lump sum D
      + Lump sum E
      + Lump sum W
      + ETP type O: Tax free
      + ETP type O: Taxable
      + ETP type R: Tax free
      + ETP type R: Taxable
      + ETP type S: Tax free
      + ETP type S: Taxable
      + ETP type P: Tax free
      + ETP type P: Taxable
      + ETP type D: Tax free
      + ETP type D: Taxable
      + ETP type B: Tax free
      + ETP type B: Taxable
      + ETP type N: Tax free
      + ETP type N: Taxable
      + ETP type T: Tax free
      + ETP type T: Taxable
      - Salary sacrifice super
      = Gross wages (STP data)
Reconcile PAYG Withholding

To reconcile your PAYG withholding, you'll need to calculate various columns of data in both the Advanced Payroll Activity Report and the STP 2 YTD report and confirm that your calculated totals match. 

If your totals for each report do not match, please refer to the troubleshooting section of this article for the next steps. 

  PAYG Withholding (payroll data) = PAYG Withholding (STP data)

The table below identifies which columns need to be included in your calculation to work out the total for each report. The 2 columns on the left are for the Advanced Payroll Activity Report and should be calculated separately. The 2 columns on the right are for the STP 2 YTD Report and should be calculated separately. 

  Advanced Payroll Activity Report     STP 2 YTD
  PAYG Withholding     PAYGW
= PAYG Withholding (payroll data)   + ETP type O: Tax
      + ETP type R: Tax
      + ETP type S: Tax
      + ETP type P: Tax
      + ETP type D: Tax
      + ETP type B: Tax
      + ETP type N: Tax
      + ETP type T: Tax
      = PAYG Withholding (STP data)

 

Reconcile Superannuation

To reconcile your superannuation, you'll need to calculate various columns of data in both the Advanced Payroll Activity Report and the STP 2 YTD report and confirm that your calculated totals match. 

If your totals for each report do not match, please refer to the troubleshooting section of this article for the next steps. 

  Superannuation (payroll data) = Superannuation (STP data)

The table below identifies which columns need to be included in your calculation to work out the total for each report. The 2 columns on the left are for the Advanced Payroll Activity Report and should be calculated separately. The 2 columns on the right are for the STP 2 YTD Report and should be calculated separately. 

  Advanced Payroll Activity Report     STP 2 YTD
  Super Guarantee     Super liability
+ Salary Sacrifice   + RESC
+ Employer Additional Super Contribution   = Superannuation (STP data)
= Superannuation (payroll data)      

Additional Processes

Review allowances

The balances of your reportable allowances do not need to be reconciled separately as they are calculated within your gross reconciliation. However, it is good practice to ensure your allowances are configured correctly and reporting as intended. 

Refer to the Pay Item and Allowance schedule to review the configuration and STP reporting categories that are set against each item. If an item's STP reporting category is incorrect, please reach out to support with the details and we will assist you in getting this updated. 

  Please note: If you have transitioned to STP2, the value present in the Pay Item and Allowance Schedule will reflect the STP 2 category. The STP 1 categories for allowances are no longer editable after the transition. 

Troubleshooting discrepancies

If you find that your payroll and STP data are not reconciling, please follow the below process. 

  1. Determine what is incorrect
    • Is the data in the Advanced Payroll Activity or the STP data correct?
    • If the data is incorrect for either report, is it for the STP 1 period or STP 2?
  2. Determine which employees' data is wrong
  3. Determine which payslips are causing the discrepancy
  4. Determine which line items are causing the discrepancy
    • The Advanced Payroll Activity Report with additional groupings of Line Item and Payslip will help to identify this. 
    • The STP Line Item Reports are another good option for investigating discrepancies on an employee-by-employee basis. 
  5. Once identified, reach out to support with your findings.

Handy hints to help troubleshoot discrepancies

  • If you find that the total amount on the Advance Payroll Activity Report is higher than the total amount on the STP YTD report, an STP batch may not have been submitted

    In this case, confirm that the YTD for your employee/s is correct in the Advanced Payroll Activity Report.

    If so, and the YTD in the Advanced Payroll Activity Report is correct, please contact us at help@foundu.com.au for assistance in correcting the STP YTD discrepancy. 

    If not, you will need to make the relevant changes required to the employee/s payslips and correct them. Then submit the updated STP packet/s to correct the STP YTD figures. Once all STP batches have been submitted check that the STP YTD figures are now correct. 

  • If you find that the total amount on the STP YTD Report is higher than the total amount on the Advance Payroll Activity Report, additional STP batches may not have been submitted i.e. STP batches generated from edits or adjustments to payslips may have been missed. 

    In this case, confirm that the YTD and Office Code for your employee/s is correct in the Advanced Payroll Activity Report and please contact us at help@foundu.com.au for assistance in correcting the STP YTD discrepancy.
Requesting Assistance

Requesting assistance

When requesting assistance from support with a reconciliation discrepancy, please include details of the discrepancy you have identified and relevant supporting details such as:

  • Your spreadsheets with workings
  • Confirmation of what value is correct and what is incorrect (payroll report or STP)
  • Details of each employee with the affected payslips or line items

Including all the required information will mean the support team can investigate your query sooner.