ATO error code: CMN.ATO.PAYEVNTEMP.000361

Hi TQ1, 

Thanks for your post. 

These errors mean that allowance items cannot be provided under Voluntary Agreement, Labour Hire, or Other Specified Payments Income Types. One (or more) employees with a tax certificate category of Voluntary Agreement, Labour Hire, or Other Specified Pay have an allowance entry on their timesheet. 

You may need to check the Employee cards >> Payroll details tab >> Taxes >> Income type. If Labour hire is selected as the Income type, the ATO doesn't allow payments of overtime and leave for Labour hire. You will need to confirm the correct Income type is selected.

Please let me know how it goes.

Otherwise, if my response has answered your enquiry, please click "Accept as Solution" to assist other users find this information.

Cheers,
Shella

Income type is Labour hire - this is correct

Ive also got Employment basis Labour hire - as they are a casual  labour hire or does this need to change to casual? 

Still the same error

Hi TQ1 

Labour Hire as an Income Type is only for Contractors not employees. ATO Definition: use Labour Hire to report payments by a business that arranges for persons to perform work or services directly for clients of the entity.

So if you are hiring the person out to other businesses, then the person can be Income Type Labour Hire, otherwise they are Salary & Wages type.

A Contractor they are not entitled to things like leave (at least not according to the ATO). So the ATO will not allow you to classify them as Income Type Labour Hire and pay them leave.

Regards

Gavin

Thank you  - so yes I hire that person (as a casual) out to another organisation/entity.

They are my employee. It is traditional labour -hire arrangement

So what do I need to enter in the following :

• Payroll Details > Employment Basis ? what should this be ?

Labour Hire is what I currently have and get this error as highlighted in the original question

• Payroll Details >Taxes? what should this be ?

Again, Labour Hire is what I currently have and get this error as highlighted in the original question

Hi TQ1 

See instructions from the ATO Business Implementation Guide:

Labour-Hire (LAB)

The business rules for labour-hire are:

1. No country codes are permitted to be reported for this Income Type.
2. Only contractor payees who have been engaged by a labour hire business may be reported for this Income Type.
3. Employees engaged by a labour hire business must not be reported as Labour Hire Income Type, but as their relevant Income Type, such as Salary and Wages, Working Holiday Makers, Seasonal Worker Programme etc.
4. Only valid Tax Treatment codes may be reported for this Income Type.
5. Only valid Payment Types may be reported for this Income Type.
   
   
   

• Payroll Details > Employment Basis ? what should this be ? - I would suggest Casual  - but do check with your tax adviser.
• Payroll Details >Taxes? what should this be ? - I would suggest Income Type be set to S&W as per point 3 above, other settings same as those for a regular employee based on the TFN Declaration they provided - but do check with your tax adviser.

Regards

Gavin

Hi TQ1, 

Thanks for the response. 

We apologize for the late reply. May we know if you’re still encountering the error message after the information that Gavin provided? Also, we would like to thank gavin12345 we really appreciate the help and information you are sharing to our community forum fellows. Please let me know if you need further help with this. We're happy to help you further.

Kind regards,

Shella

When I chose labour hire for both those sections - (I need to) I still get the error; so it is not yet resolved

Hi TQ1, 

Thanks for the response.

Apologize for the late reply. We're sorry to know that the error is still showing on your end despite following the given instructions. Your patience is highly appreciated in this matter. We recommend contacting the ATO directly as they have a way of how we can get rid of this error message. Do let us know how it goes. 

Kind regards,

Shella

Hi TQ1, 

I hope this message finds you well today. I just wanted to follow up on whether you’re able to get rid of this ATO error message and if you’re able to contact the ATO regarding this matter as we advised. If you still need assistance with this, please don’t hesitate to reply as we’re always delighted to assist you further. 

Kind regards,

Shella

Hi TQ1, 

I hope this message finds you well today. We have recently asked for updates to assist you further, but we have not received any response. We will be closing this thread now. If you encounter any further issues, please feel free to start a post again, and one of our moderators will attend to it.

Kind regards,

Shella