Understanding Duplicate Income Statements in Single Touch Payroll (STP)

When STP data is submitted to the ATO, employee records are matched using a combination of:

• Employer ABN
• Branch Code
• Business Management Software (BMS) ID
• Employee Payroll ID

If any of these identifiers change during the financial year, the ATO will create a separate Income Statement for the employee.

Example

An employee may have two Income Statements created where the BMS ID has changed, even though all other details remain the same:

Although the employee is the same person, the change in BMS ID causes the ATO to treat the submission as a separate payroll source, resulting in multiple Income Statements.

1. Payroll Platform Migration

When migrating between payroll platforms, a new BMS ID may be generated. If historical year-to-date figures are reported under both the old and new BMS IDs, multiple Income Statements may appear.

2. Changing STP Branches

Changing the reporting branch within STP can result in a different Income Statement being created.

3. Employee Re-created Instead of Transferred

If an employee is terminated and recreated rather than transferred correctly, a new Employee Payroll ID may be generated.

4. Business Merge or Entity Changes

Moving employees between employing entities or payroll files may create additional Income Statements where reporting identifiers differ.

5. Incorrect Employee Payroll ID During Migration

A migration may successfully transfer employee data while assigning a new Payroll ID. Because Employee Payroll ID forms part of the STP matching logic, this can generate a separate Income Statement.

6. Historical STP Data Still Exists

Even when payroll data is corrected, previous submissions may still exist within the ATO's records and continue displaying until updated YTD information is submitted.

When investigating duplicate Income Statements, verify the following:

Step 1 — Confirm Employee Details

Check:

• Employee name
• Date of birth
• Tax File Number (TFN)

Ensure these details are consistent across all payroll records.

Step 2 — Compare STP Identifiers

Review:

• ABN
• Branch Code
• BMS ID
• Employee Payroll ID

Identify whether any of these values have changed during the financial year.

Step 3 — Review Employee Transfers

Determine whether the employee was:

• Migrated from another payroll platform
• Moved between payroll files
• Recreated instead of transferred

Step 4 — Check Year-to-Date Balances

Confirm that YTD earnings reported through STP align with the payroll records that should be reported for the financial year.

Where earnings have been reported under an incorrect STP identifier, the incorrect record may need to be reduced to zero before resubmitting the correct figures.

This is commonly achieved through:

• Reset Earnings
• Fix STP Data
• Lodging an Update Event

Reset Earnings allows payroll earnings to be recalculated and rebuilt from payroll transactions.

This process is commonly used when:

• STP values do not match payroll values
• Historical earnings require recalculation
• YTD figures appear incorrect

General Process

1. Create a backup of payroll data.
2. Run the Reset Earnings process.
3. Allow payroll earnings to rebuild.
4. Review employee YTD balances.
5. Confirm totals are now accurate.

Fix STP Data recalculates STP reporting values and synchronises payroll records with STP reporting tables.

This process is commonly used after:

• Data corrections
• Employee transfers
• Earnings resets
• STP inconsistencies

General Process

1. Complete the Reset Earnings process if required.
2. Run Fix STP Data.
3. Review the results.
4. Confirm employee YTD values are accurate.

An Update Event sends the latest Year-to-Date values to the ATO without creating a new pay run. This allows the ATO to update Income Statement information using the corrected totals.

General Process

1. Verify payroll totals are correct.
2. Create an Update Event.
3. Lodge the Update Event with the ATO.
4. Monitor the submission status.
5. Allow time for the ATO to refresh Income Statements.

The ATO Controls Income Statements

Payroll software submits STP data to the ATO, however the Income Statement displayed in myGov is generated by the ATO. Changes may take time to appear after an Update Event has been successfully lodged.

Multiple Income Statements Are Not Always Incorrect

In some circumstances, multiple Income Statements are expected, including:

• Genuine employment under different entities
• Reporting under different ABNs
• Reporting under different branches
• Mid-year payroll migrations where reporting identifiers changed

Not All Duplicate Income Statements Can Be Merged

The ability for the ATO to consolidate Income Statements depends on the STP identifiers reported and the data received. In some situations, the ATO may continue displaying separate Income Statements where separate reporting sources existed during the financial year.

Gather the following information before contacting support:

• Employee name
• Employee Payroll ID
• ABN
• Branch Code
• BMS ID
• Screenshots of Income Statements
• Details of any payroll migration or employee transfer
• Confirmation of whether Reset Earnings and Fix STP Data have already been completed

Providing this information will assist with identifying which reporting identifier has changed and whether additional STP corrections are required.

Duplicate Income Statements generally occur when the ATO receives STP submissions containing different identifying information for the same employee.

The most common identifiers involved are:

• ABN
• Branch Code
• BMS ID
• Employee Payroll ID

Troubleshooting should focus on identifying which identifier changed, validating Year-to-Date earnings, and where required completing:

• Reset Earnings
• Fix STP Data
• Lodge an Update Event

Once corrected YTD figures are successfully reported to the ATO, the employee's Income Statement information can be updated accordingly.