STP2 Task Allowance
Hi
Can someone please tell me, when I now add a "Task Allowance" (industry allowance) to show separately under Gross Payments - the task allowance is a set amount per hour - do I need to take adjust the overall gross hourly rate of pay.
such as, an employee has always been paid say $40 per hour (inclusive of casual loadings and hourly industry allowance) - now the industry allowance of $1.14 per hour must be shown separately - do I then need to change the hourly rate of pay to $38.86?
In MYOB, I have checked the "fixed hourly rate of" box, then added the amount. Do I need to check either "override employees wage expense account" OR "automatically adjust base hourly or base salary details" - if I check the later is it going to add the industry allowance again?
Thanks
Kate
Hi Kate69
Thanks for your post. If allowances and loadings are paid separately using their own payroll category the amounts are added to the gross wages amount when processing the payrun. So if an allowance has previously been included in the Base hourly rate you would need to adjust the Base hourly rate accordingly.
The option to Override employees wage expense account relates to how the amount is reported in the financial reports. If you don't select that option, amounts paid to that payroll category are reported to the Wages & Salaries expense account. If you wanted to report a particular payment type separately you could create a specific expense account for the payment. For example, if you want to see the total allowances paid in the P&L report you could create an allowances expense account and select that account.
If Automatically adjust base hourly or base salary details is selected regular pay hours and amounts are adjusted accordingly. Typically this is ticked for leave payroll categories so that when leave hours are entered in a payrun the Base Hourly hours are reduced by the leave hours.
Please let me know if you need further help.
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