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Yurina's avatar
Yurina
User
14 days ago
Solved

Flat tax on allowance sitting under deduction

Hi all,    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 ...
  • Doreen_P's avatar
    Doreen_P
    14 days ago

    Hi there Yurina

     

    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.

     

    Best regards,

    Doreen

Doreen_P's avatar
Doreen_P
MYOB Moderator
14 days ago

Hi there Yurina

 

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.

 

Best regards,

Doreen

  • Yurina's avatar
    Yurina
    User
    14 days ago

    Hi Doreen, 

     

    Thank you for the reply. 

     

    I have gone through the link I can't see anything for the flat tax deducted as deduction. 

     

    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? 

     

    Not reportable

    to be assigned

    Deduction- Union/Prof association fees

    Deduction- Workplace giving

    ETP tax holding

    Salary Sacrifice