Forum Discussion

TQ1's avatar
TQ1
Contributing User
7 months ago

ATO error code: CMN.ATO.PAYEVNTEMP.000361

Hi, please help. I am trying to set up an employee with a new card file, and they are classified as labour hire. However, I keep getting the error mentioned in the subject.   The other text : PaidL...
TQ1's avatar
TQ1
Contributing 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

 

gavin12345's avatar
gavin12345
Ultimate User
7 months ago

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

  • TQ1's avatar
    TQ1
    Contributing User
    7 months ago

    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

     

     

    • gavin12345's avatar
      gavin12345
      Ultimate User
      7 months ago

      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

      • Shella_A's avatar
        Shella_A
        MYOB Moderator
        6 months ago

        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