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MOTIVATED's avatar
MOTIVATED
Experienced Cover User
3 years ago

Overtime on STP2 Segregated Allowances

Hi 

Have not been able to find a clear answer on how overtime can be calculated to include "all purposes" allowances amounts if they are segregated in STP2 from the Gross.

For overtime category eg 1.5 O/T, the Gross is being picked up from the employee Card hourly amount ,this is now lower due to segragating allowances. Overtime would therefore calculate now on a lower hourly figure.

How is this going to be possible to calculate on two areas "Base Hrly & Allowance?

  • CloverQ's avatar
    CloverQ
    Former Staff
    3 years ago

    Hi MOTIVATED 

     

    I'm not sure why the overtime calculation set up would be different after certain allowances are reported separately in STP 2. By searching 'all purposes allowance' I found this post on the ATO's forum which may help your situation - https://community.ato.gov.au/s/question/a0J9s000000LkKN/p00178733

     

    If your situation is different, I'd recommend clarifying the reporting requirements/calculation with ATO or with your accountant in order to work out the best set up for your business. 

    • MOTIVATED's avatar
      MOTIVATED
      Experienced Cover User
      3 years ago

      Hi Clover

      I suppose trying to work out how segregating the bulk Gross amounts will calculate in Myob if we now need to lower the Hourly Wage in the employee card so Myob picks up the new lower Base Hourly amount . Now the Industry etc is to be separated. The overtime x1.5 category would also calculate now on the lowered amount in the employee card.

      For example- Prior- (Base Hourly included Industry Allowance)

      $60.00 - When do a payrun Myob would calculate 38hrsx$60 placed in employee card

       

      For example- New - (Base Hourly in card needs to be lowered by $5 due to Industry allowance).

      $55.00 - In card so Myob only calculates on 38x$55 now & linked to Gross

      $ 5.00 - New Industry Allowance Earning Line linked to Task Allowance, but no longer to be multipled by card hourly rate

      Therefore if employee did 1 Hour O/T, which is technically 1x$60, Myob would now only pick up 1x $55 due to amended employee card.

      How can overtime calculated on the 2 amounts still, without NET Pay also being thrown out?

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