Forum Discussion
The exemption from tax for the first $320 was removed quite a while ago if you have this marked as tax exempt you “may” find this is the issue
- KerryGee6 years agoContributing User
Hi Paul
I phoned MYOB STP support today, no help what so ever. They suggested manually entering zero in the year to date leave loading in employee card details (he suggested this as the business was sold two weeks ago and I am no longer processing wages. He then said process pay again with the leave loading amount. Sounded crazy to me. Detailed payroll summary shows the leave loading but is not appearing in EOFY STP finalisation.
- PaulBihet6 years agoUltimate Partner
I suspect the issue is from your legacy setup of allocating the first $320 of leave loading separately. Is this payroll category marked as tax exempt (I suspect it is, as this was the case years ago). In which case the ATO is seeing it as tax exempt income and not processing it to payroll summaries.
To test please try the following
Process a payroll run for one of the employees
Enter minus $320 for the first $320 payroll category
Enter positive $320 for the standard leave loading category
Override/ Zero out any entitlements tax and super should not be effected etc but if they are zero them also
Finalise and send the payroll transaction to the ATO.
Note you are processing a net payment of Zero dollars as the plus and minus cancel each other out.
Check if this employee/ total reported has updated. If so proceed to do the same with your other employees.
Please report back how you get on so others may benefit.
PS if it works mark my response as a solution .
- Lynch5 years agoExperienced Cover User
Hi Paul
I to had the same issue with the leave loading being less than $320 as tax exempt and not showing on the payment summaries.
I've tried as suggested entering a minus $320 against the original payroll category and a positive against the standard leave loading category. The payroll is zero and recorded and sent to the ATO. I've gone back into to check if the correction has had any affect on the payment summaries but it's still showing the same.
I also tried originally as another poster to unselect tax to be taken our the leave loading and processed zero payroll again this had no affect on the payment summary.
Any help would be greatly appreciated as I'm running out of ideas.
- KerryGee5 years agoContributing User
All fixed, it was marked as tax exempt = I removed this and processed all pays as $0 and all fixed now.
thanks heaps
- gedwards5 years agoCover User
I also had this problem at the end of year payg summaries....problem resolved when changing the leave loading from exempt from PAYG and then running a zero pay for those employees. This fixed the totals in the EOFY summaries.
My question now is.....Is the leave loading now not exempt from PAYG.. had always thought it was exempt??
- PaulBihet5 years agoUltimate PartnerThe exemption for the first $320 was removed in 2012
See page 3
https://www.ato.gov.au/uploadedFiles/Content/MEI/downloads/BUS00319019N10050512.pdf