An employee's details are wrong¶

Every so often you notice that something in an employee's record is not right — a tax file number typed incorrectly, the wrong answer to a tax question, an old bank account, or out-of-date super fund details. This is normal, and it is fixable.

The general approach is the same each time: correct the detail in your payroll, and where the wrong detail changed what was reported to the ATO or what was paid out, re-report or re-pay so everything lines up.

In one line

Fix the wrong detail in your payroll, then re-report or re-pay wherever that detail changed what was sent — so tax, super and pay reach the right place.

Why this matters¶

An employee's details decide three important things: how much tax is withheld, where their super goes, and where their pay lands. If a detail is wrong, one of those can end up incorrect — too much or too little tax, super sent to the wrong place, or pay in the wrong account. Fixing the detail protects your employee and keeps your records right.

What you will learn¶

Which employee details affect tax, super and pay
How to update the correct details in your payroll
When to re-report or re-pay after fixing a detail

Understanding the concept¶

A few key details do a lot of work in payroll:

Tax file number (TFN) and tax treatment — the answers an employee gives about their tax situation. The ATO explains these feed into a tax treatment code that helps decide how much tax you withhold from their pay. If the TFN or those answers are wrong, the wrong amount of tax can be withheld.
Bank account — where the employee's net pay is sent. A wrong account means the pay can go to the wrong place.
Super fund details — the fund and member details that tell you where to send super. Wrong details can cause super to go astray or be returned.

Fixing a wrong detail has two parts. First, update the correct detail in the employee's record in your payroll, so future pays use the right information. Second, look at whether the wrong detail already changed something that was sent out:

If it affected what was reported to the ATO (for example the tax details), you generally need to re-report so the ATO's records match the corrected details. The ATO expects updated tax details to flow through in your pay reporting.
If it affected what was paid (for example super sent using the wrong fund), you generally need to re-pay to the right place.

The rule of thumb: correct it going forward, and clean up anything the wrong detail already sent.

For accountants & bookkeepers

Under STP Phase 2, employment and tax information reported through the pay event largely replaces separate tax file number declarations to the ATO. The ATO expects updated tax details to be reflected in an STP report within the time it specifies after you receive the employee's form. Where an incorrect TFN has been quoted, the ATO sets out how to withhold until a correct TFN is provided. Check the current ATO guidance for the exact timing and treatment before actioning a correction.

Example¶

A small business owner realises a new employee's tax file number was entered with two digits swapped, and that the employee had also given an old bank account. The owner corrects both details in the employee's record. Because the wrong tax detail affected what was reported, the owner makes sure the corrected information flows through in the pay reporting to the ATO. The bank account only affects future pays, so updating it in the record is enough going forward. From the next pay, everything reaches the right place.

Common mistakes¶

Fixing the detail for future pays but not re-reporting or re-paying what the wrong detail already sent.
Changing a bank account or super fund without confirming the correct details with the employee.
Assuming a TFN typo has no effect — it can change how much tax is withheld.
Treating every wrong detail the same — some only affect future pays, others need a re-report or a re-pay.

How this works in myaccountant¶

In the app — you update an employee's details, such as their tax information, bank account and super fund, in their employee record. Where a corrected detail changed what was reported to the ATO, myaccountant lets you re-report the pay information through STP. Where it changed a super payment, you can pay the super again from the payroll super area once the fund details are corrected.

Key points¶

An employee's details decide their tax, where super goes, and where pay lands.
Always update the correct detail in the employee's record first.
Where the detail changed what was reported, re-report so the ATO's records match.
Where the detail changed what was paid, re-pay to the right place.
Some details only affect future pays; others need a clean-up of what was already sent.
Confirm bank and super details with the employee, do not guess.

Learn next¶

General information only — not tax, super or financial advice.

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