Forum Discussion
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
- TQ110 months agoContributing User
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
- gavin1234510 months agoUltimate User
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
- TQ110 months agoContributing User
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
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