Hi Sai,
Thank you very much for your response and for the suggestion to consult with a professional. I appreciate the guidance.
While I understand the importance of individual advice, I am specifically seeking the standard industry-wide practice for this scenario. Given that this is a recurring situation in the childcare sector, I believe there must be a singular, ATO-compliant method for processing these pass-through payments that ensures the business remains cost-neutral.
My primary goal is to ensure that the centre is fully compliant with current regulations while accurately managing the 12% Super Guarantee. Could you please clarify the following technical aspects?
1. Standard Workflow: Is it standard practice to treat the University’s payment as a "Total Package" and "gross-down" the payment to the teacher (i.e., University Fee ÷ 1.12) so that the Base Pay plus the 12% Super equals the exact amount received?
2. STP Phase 2: Which reporting category (Allowance, Bonus, etc) should be used in MYOB for such payments to ensure they are correctly identified as Ordinary Time Earnings (OTE)?
I am looking to implement a workflow that is objectively compliant with ATO requirements, rather than one dependent on individual interpretation. Any insights from those who have implemented this successfully would be greatly appreciated.
Thanks again for your help!
