Flat tax on allowance sitting under deduction

Question

Hi all,&nbsp;&nbsp;I have set up a flat tax deduction on allowance as per below instruction. What ATO category should I link to? I am trying to finalize the STP however the tax sitting as deduction rather than PAYG.&nbsp;Tried calling ATO and MYOB but was not any help. Anyone else have answer to this?&nbsp;&nbsp;&nbsp;

doreen_p · Accepted Answer

Hi there Yurina
&nbsp;
Usually, if an allowance has a flat rate tax, it's set up as a deduction rather than PAYG. This helps keep things tidy for tax reporting. When finalising STP, you'll want to link this allowance to the appropriate ATO category for deductions. This ensures everything aligns correctly when you're reporting to the ATO. If you need more specific guidance on which ATO category to link it to, I'd recommend checking our link here. Let me know if there's anything else I can assist you with.
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Best regards,
Doreen

yurina · Answer

Hi Doreen,&nbsp;&nbsp;Thank you for the reply.&nbsp;&nbsp;I have gone through the link I can't see anything for the flat tax deducted as deduction.&nbsp;&nbsp;I have tried contacting ATO but no help. Below are the category I can see and I don't think they are what I can select. Should I just process the adjustment to add the tax deducted from the flat tax deduction to show under tax on the payroll run?&nbsp;&nbsp;Not reportableto be assignedDeduction- Union/Prof association feesDeduction- Workplace givingETP tax holdingSalary Sacrifice&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

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Flat tax on allowance sitting under deduction

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