A Previous Tax Year Adjustment is rarely used. It is used to include an employee in STP Update when they haven't received earnings in a previous financial year. It is not used to back pay or add payments to a previous year.
Important: Don't use Previous Tax Year Adjustment to enter values that will be paid to employees in the new or current financial year or to adjust STP values once you have submitted the Final Event, instead:
use STP Adjustment to adjust values (including tax) for a previous financial year. (Ensure that the Final Event via STP Update has been reported first). For more information, see Process an STP Adjustment.
use Back Pay when applying a rate increase for a previous year, see Back Pay.
use Manual Calculation or Timesheets for missed values that will be received by the employee in the new Financial Year.
use Manual Calculation to adjust values for the current financial year.
To process a Previous Year Adjustment
Take a backup, select Utilities, Backup Database.
Go to Payroll, Transactions, End of Year, Previous Year Adjustment.
Select the Employee and the Financial Year.
Add values as required for the relevant Pay Components. If you need to subtract a value, enter the Hours and Value as a negative.
Click Process to finalise the transaction.
The adjustment values will be displayed on the following reports:
Payroll Report (Include Previous Tax Year)
Employee Enquires, Transactions tab
Add Transaction Type to the grid to filter on Previous Year Adjustment
IQ Report, IQB-RET001 Payroll Employee Transactions Details (Report)