1. Go to the Payroll command centre and click Payroll Categories.
2. On the Wages tab, click the blue zoom arrow to open the lump sum E wage category.
3. Click Employee.
4. Deselect all employees and click OK.
5. Click OK to save your changes.

You'll need to create a payroll category for each financial year that your lump sum E payments relate to. Using our example above, we'd need to create two payroll categories.

1. Go to the Payroll command centre and click Payroll Categories.
2. On the Wages tab, click New.
3. Give the wage category a meaningful Name, like like 'Lump Sum E 2018/19'.
4. For the ATO Reporting Category, choose Lump Sum E.
5. For the ATO Reporting Category (Phase 2), choose Lump Sum E.
6. Choose the Financial Year the lump sum E relates to.
7. For the Type of Wages, select Salary.
8. Click Employee.
9. Choose the employees who were paid a lump sum E payment for the specified financial year and click OK.
10. Click OK to save the new wage category.
11. Repeat these steps to create additional payroll categories for other financial years.

You can advise the ATO about the financial years related to your lump sum E payments using a correction pay. This is similar to a regular pay, but instead of paying the employee you'll be removing the lump sum payment from the original wage category and adding it to the new wage category you've created.

This will result in a $0 net pay and the lump sum E financial year information will be sent to the ATO.

1. Start a new pay run for the employee (Payroll > Process Payroll).
2. Choose the pay run details:
   • Select the option Process individual employee and choose the employee who received the original lump sum E payment.
   • Choose the same Payment Date, Pay period start and Pay period end as the original lump sum E payment.
   • Click Next.
3. Click the blue zoom arrow to edit the employee's pay.
4. Enter the amount of the lump sum E payment as a negative amount against the original wage category you used. In our example this is -3,300.00
5. Enter the respective amounts of the lump sum E payment for each financial year as positive amounts against the new wage categories. In our example this is 1,300.00 and 2,000.00
6. Clear all other hours and amounts from the pay to ensure they're zero.
   Here's our example - notice the net value of the pay is $0.00
   
7. Finish processing the pay as normal, which includes confirming that you're voiding the pay and sending it to the ATO for STP reporting.

You won't be using the original lump sum E wage category any longer, so it's a good idea to remove it from all your employees.

1. Go to the Payroll command centre and click Payroll Categories.
2. On the Wages tab, click the blue zoom arrow to open the original lump sum E wage category.
3. Click Employee.
4. Deselect all employees and click OK.
5. Click OK to save your changes.

You'll need to create a wage payroll category for the financial year that your lump sum E payments related to — using our example above, this would be the 2019/20 financial year.

1. Go to the Payroll command centre and click Payroll Categories.
2. On the Wages tab, click New.
3. Give the wage category a meaningful Name, like like 'Lump Sum E 2019/20'.
4. For the ATO Reporting Category, choose Lump Sum E.
5. For the ATO Reporting Category (Phase 2), choose Lump Sum E.
6. Choose the Financial Year the lump sum E relates to.
7. For the Type of Wages, select Salary.
8. Click Employee.
9. Choose the employees who were paid a lump sum E payment for the specified financial year and click OK.
10. Click OK to save the new wage category.

You can now use a correction pay to advise the ATO about the financial year the lump sum payments related to. This is similar to a regular pay, but instead of paying the employee you'll be removing the lump sum payment from the original wage category and adding it to the new wage category you've created.

This will result in a $0 net pay and the lump sum E financial year information will be sent to the ATO.

1. Start a new pay run for the employee (Payroll > Process Payroll).
2. Choose the pay run details:
   • Select the option Process individual employee and choose the employee who received the original lump sum E payment.
   • Choose the same Payment Date, Pay period start and Pay period end as the original lump sum E payment.
   • Click Next.
3. Click the blue zoom arrow to edit the employee's pay.
4. Enter the amount of the lump sum E payment as a negative amount against the original wage category you used. In our example for Mary, this is -3,300.00
5. Enter the same value as a positive amount against the new lump sum E wage category. In our example this would be 3,300.00
6. Clear all other hours and amounts from the pay to ensure they're zero.
   Here's our example - notice the net value of the pay is $0.00
   
7. Click OK.
8. Finish processing the pay as normal, which includes confirming that you're voiding pays and sending it to the ATO for STP reporting.
9. Repeat for the other employees who were paid a lump sum E payment for the specified financial year.

You won't be using the original lump sum E wage categories any longer, so it's a good idea to remove them from all your employees.

1. Go to the Payroll command centre and click Payroll Categories.
2. On the Wages tab, click the blue zoom arrow to open the original lump sum E wage category.
3. Click Employee.
4. Deselect all employees and click OK.
5. Repeat steps 2-4 for the other original lump sum E wage category.
6. Click OK to save your changes.

Assign ATO reporting categories for Single Touch Payroll reporting

Getting ready for STP Phase 2