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BreeDeCunha's avatar
BreeDeCunha
Experienced User
2 years ago

Changing income type STP Phase 2

I have a client who owns the business but also pays himself through Payroll as an employee.

 

I originally thought he would be classed as a Closely Held Payee, however, because he is paid every fortnight with other employees, I have been advised that his income type is Salary and Wages.

 

When I first set up STP 2, I selected CHP for this employee. However, I have since updated to SAW within their employee card.

 

Is there anything else I need to do in MYOB to ensure that the new information is reflected in what the ATO receives?

 

 

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  • gavin12345's avatar
    gavin12345
    Ultimate User
    2 years ago

    Hi BreeDeCunha 

     

    A Closely Help Payee (CHP) is almost always a Salary and Wages Payee (SAW) as well. Specifying them as CHP can qualify for some concessional treatment (frequency of reporting, due dates etc). However these concessions can be meaningless if they also have other arms length employees they need to report on anyway. So use CHP or SAW and whatever you specify on the employee's card, this is what MYOB will send to the ATO.

     

    Suggest you check this with your accountant or tax adviser. I would also check your first statement, depending on what business structure is used (sole trader/partnership/company etc) to ensure accountant is aware.

     

    Regards

    Gavin

    • BreeDeCunha's avatar
      BreeDeCunha
      Experienced User
      2 years ago

      Thanks so much for your help Gavin.

       

      Does MYOB have anything to contribute to this??????

      • Tracey_H's avatar
        Tracey_H
        Former Staff
        2 years ago

        Hi BreeDeCunha 

         

        On the Community Forum we encourage users to provide advice and assistance, as such, you won't always receive a reply from an MYOB Moderator.

         

        As advised by gavin12345 you just need to ensure you have selected the correct Income Type in the employee card. If you change the Income Type, this will be updated with the ATO when you send the next STP report.

         

        Please let us know if you need further help.