Not Reportable Payroll Categories reporting to ATO ***URGENT***
I have starting looking at Payroll reconciliations in preparation for the EOFY and noticed that a "Deduction" named "Employee Purchase"with ATO Reporting Category set as "Not Reportable" reporting to the ATO (on the report being sent to the ATO).
Please advise URGENTLY how and when this is to be fixed as this will affect the employees tax return.
Thanks Tracey
Yes I had ticked Tax Exempt for the payroll category.
As it is for a staff purchase it should not be subject to tax, but from a software point of view I understand why it is working as it is.
I created a reverse entry, and unchecked the tax exempt box and then processed it again. Didn't send any reports to the ATO.
It seems to have worked, but I will check after this week's payrun that it is not reported to the ATO.