To change an employee's reported Income Type for a previous Tax Year, use STP Adjustment. You reduce or zero out values for the incorrect Income Type and add a new Income Type with values. Once the STP Adjustment is complete, you can report the amended Income Types and values to the ATO.
Before entering an STP Adjustment, consider:
Backing up your payroll database before processing the STP Adjustment.
Adjustments entered are not validated against processed transactions. You need to ensure the changes are correct before submitting to the ATO.
STP Adjustment reported values are not available in any window other than STP Adjustment and will not change Transaction, Reports or STP Update. Nor will they change the Gross Taxable value in the STP Adjustment grid as this is based on Transactions.
To change an employee's Income Type, follow the steps below:
Go to Payroll, Transactions, Import and Export, STP Adjustment.
Select the Payroll Company that the Employee works for. You can only select one company at a time.
Select a Location or leave it as <All>.
Enter the Employee.
Select the Financial Year.
Click Apply.
Double-click on the employee in the grid to open their record.
You will receive a warning that 'Edited values are not validated by MicrOpay', click OK.
Select the incorrect Income Type. This displays the employee's YTD values for the reported Income Type(s), e.g. SAW, WHM, etc.
Overwrite the existing values to reduce or zero out the values on the incorrect Income Type. You cannot Delete existing lines, instead enter 0 for unwanted values.
Click Add New Income Type.
Select the Income Type.
Enter values for all relevant STP Reporting Groups.
Allowances, Paid Leave, Lump Sum Payments, Salary Sacrifice and Terminations have their own sections on this page.
Where they have their own section, Add items. For example, in the Allowances section:
Click Add to add a row.
Select the Allowance Type. If you use OD (Other Allowance), you also select an Other Allowance code.
Enter the Amount.
The Terminations section is disabled unless a termination transaction exists for the employee in the selected financial year. If the employee was paid an ETP, the ETP details are displayed in the grid. You can change the values associated with the ETP and select a different ETP Code.
When you have made the adjustments, click Save. Your changes are saved, and you are returned to the STP Adjustment grid.
In the grid, the Selection checkbox is automatically ticked for the edited employee. Click Update ATO.
The STP Adjustment Declaration is displayed. Confirm that the Full Name is correct, tick the Declaration checkbox and click Report.
A message confirms that the Adjustment has been sent. Click OK to close the message, which will clear the STP Adjustment grid.
Check that the Adjustment Event is successful in STP Reporting (Payroll, Transactions, Import and Export). You will need to ensure that the Payment Dates From and To include 30 June of the Financial year you processed the adjustment for. For example, if you processed a 2025 adjustment, you need to include 30 June 2025.
Important: If you close the STP Adjustment window before reporting the adjusted values, your changes will not be retained, and you will need to edit the employee(s) again before reporting.
For more information see Process an STP Adjustment.