Payroll categories
I need some assistance to correct an issue with STP2 reporting. We had a payroll category set up for WAFH which was originally set up as an allowance & was taxable.
I have since found out that the amount we pay for WAFH is not taxable & needs to be assigned to gross payments. Instead of creating a new payroll category for WAFH-tax free I amended the original category which has affected my STP2 reports for payments previously made.
How do I correct this with only 1 WAFH category that is tax free-ATO assigned gross payments?
Hi there Liza15,
To correct the 1 WAFH category, you'll need to create a new payroll category and use the correct ATO reporting category instead of changing the existing WAFH. If there are two payroll categories with the same name but different ATO reporting categories, the best move is to create a new one. This ensures that the STP (Single Touch Payroll) reports won't be affected. You can check this link for more information.
Best regards,
Doreen
