Forum Discussion

seqtt's avatar
seqtt
Trusted Cover User
3 years ago
Solved

Deducting Monies in Lieu of Notice

When processing an ETP, you're usually PAYING the employee monies in lieu if they were terminated by the company, and so we assigned the Monies in Lieu of Notice payroll category to W1 in the Activit...
AccountRight
assigned payroll categories
IAS
monies in lieu of notice
Payroll
STP
Termination
  • Tracey_H's avatar
    Tracey_H
    3 years ago

    Hi seqtt 

     

    On the Community Forum we encourage users to offer advice and assistance, as such you won't always receive and immediate reply from an MYOB Moderator. If you do require immediate assistance we recommend contacting our Live Chat or phone based teams.

     

    Can you please try clicking on Update from ledger (above Prepare to lodge) to refresh the W1 field. Please let me know if that doesn't work. In the meantime, you can manually change the amount in the W1 field in order to lodge your IAS.

     

    STP uses the ATO reporting categories to report payments so you would need to ensure the correct ATO reporting category is selected for that payroll category. I'd recommend checking the Summary of payments report (Payroll reporting centre>>EOFY finalisation tab>>click on the ellipsis for that employee) to make sure the YTD amounts are correctly reported.

     

    Please let me know how you go.

     

    If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.

seqtt's avatar
seqtt
Trusted Cover User

We are holding back our May IAS and Payroll Tax payments until we have a response to this please.

I would rather process the payroll correctly befor lodging our tax obligations rather that have to resubmit an amendment the payroll was posted incorrectly

Steven_M. would you direct this to someone who can advise please?

Tracey_H's avatar
Tracey_H
Former Staff
3 years ago

Hi seqtt 

 

On the Community Forum we encourage users to offer advice and assistance, as such you won't always receive and immediate reply from an MYOB Moderator. If you do require immediate assistance we recommend contacting our Live Chat or phone based teams.

 

Can you please try clicking on Update from ledger (above Prepare to lodge) to refresh the W1 field. Please let me know if that doesn't work. In the meantime, you can manually change the amount in the W1 field in order to lodge your IAS.

 

STP uses the ATO reporting categories to report payments so you would need to ensure the correct ATO reporting category is selected for that payroll category. I'd recommend checking the Summary of payments report (Payroll reporting centre>>EOFY finalisation tab>>click on the ellipsis for that employee) to make sure the YTD amounts are correctly reported.

 

Please let me know how you go.

 

If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.

  • seqtt's avatar
    seqtt
    Trusted Cover User
    3 years ago

    Hi Tracey_H ,

    Thanks for your reply, and I apologise; I was unaware of the options for seeking more immediate help and will use those resources if needed in the future.

    I've updated from the ledger as you suggested, and yes that solved the IAS problem.  

    When I checked his Summary of Payments report however, the unused leave on termination has been recorded as paid rather than withheld. So again, if I set up a separate Deduction category for Monies in Lieu of Notice (similar to the ETP Tax Withheld) do you think this would resolve the problem? 

    • Tracey_H's avatar
      Tracey_H
      Former Staff
      3 years ago

      Hi seqtt 

       

      No need to apologise, we're happy to help. I just wanted to let you know if won't always be immediate. Great to hear Update from ledger solved your IAS issue.

       

      When it comes to how that payment needs to be reported through STP you'd need to check that with the ATO. Amounts sent to the ATO don't show as negatives, like the PAYG withholding amount. If you create a Deduction payroll category you'd need to find out the correct ATO reporting category to assign to the payroll category. If it's a Deduction ATO reporting category it will be reported as a positive under Deductions on the STP reports. 

       

      If it's a Gross payments ATO reporting category, like Unused leave on termination, it will be reported as it is in your screenshot. 

       

      Once you know how it needs to be reported I'll be happy to assist with doing that in the software.

       

      Please let me know how you go.

       

      If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.

      • seqtt's avatar
        seqtt
        Trusted Cover User
        3 years ago

        Hi Tracey_H ,

        I've contacted the ATO. All they really need to know is how much money the employee was paid on termination - without the need to justify monies withheld from the unused leave, so the negative amount is OK. Because Monies in Lieu were withheld rather than paid, Only a final pay was required, not an ETP