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tns05's avatar
tns05
Experienced Cover User
3 years ago

STP 2 - Separating Allowances from Hrly Rate plus calculating OT ETC

Hi

 

I have set up my payroll to be compliant with STP 2 however, I have just learned that the all purpose allowances that form part of the hourly rate for our staff need to be separated and reported for different categories.

 

Under the new STP system, I need to deduct an Electrical Licence allowance, tool allowance and industry allowance from the current single hourly rate of pay and report each allowance separately.  Each employee is on a different rate of pay, each employee has different allowance rates eg: trades, each level of apprentices etc.  Our Award stipulates that the above mentioned allowances form part of the base hourly rate of pay.

 

Using $40/hour as an example for a tradesperson that is full time - I would need to deduct the allowances from his current single base rate to give them a new single hourly rate of $35.00/hr and then have a payroll category set up for each allowance and allocate the amounts accordingly, which add up to $5.00/hr.  This means said trades is still earning his $40/hr - normal time earnings.

 

Now where I am having issues in trying to wrap my head around this crazy new system:

 

Under the award/fairwork, these allowances that I now have to separate, all form part of the employees single base hourly rate of pay - $40.00/hour.  Overtime is calculated on this hourly rate - $40/hr.  If I separate all the allowances out of their current hourly rate, which lowers their base hourly rate of pay, how do I continue to pay my employee the correct overtime amounts on $40/hr?  Do I need to need to set up overtime categories for every allowance I have to pay? 

 

Other areas that are also affected and I need answers on how to set up and make sure my obligations are being met to fairwork and my staff and the ATO:

 

Super - Currently, staff are paid super on their ordinary time earnings, which, using the above example, is based on 38 hours @ $40/hr.  If I separate allowances out of their current hourly rate of $40/hr, this then lowers the base hourly rate to $35/hr and super is then calculated on this lower amount. How do I set up super to incorporate the allowances and ensure they are still being paid the correct amount of super based on $40/hr?  If super is paid on the lower rate, I am not fulfilling our obligations correctly.

 

RDO, Annual Leave, Leave Loading & Sick pay - all of this is currently paid at $40/hour.  How do I complete payroll ensuring that when our staff take any leave, it is being calculated at $40/hr and not the new lower base rate?

 

MYOB Reporting - Currently, I can view an entitlement report displaying all hours & full amounts we owe staff for Annual leave, RDO's & Sick pay.  These amounts displayed in this report are at the current base hourly rate of pay - $40/hr.  Once allowances are separated out of the hourly rate of pay and a new lower hourly rate of pay is entered, all $$$ value amounts on these reports will be incorrect.  As they are supposed to be paid $40/hr base rate, all amounts displayed on these reports need to reflect $40/hr.  How do I set up payroll so correct amounts based on $40/hr are shown in these reports?  As a business, we need to see $$$$ amounts when budgeting, so do we now lose this function from MYOB as the amounts will be incorrect?

 

I have thought of just leaving my staff at their currently base hourly rate of pay and then paying the allowances on top as a payrise (even though all allowances are already incorporated in their hourly rate) however, this still doesn't work as our award stipulates that the allowances I have to separate out form part of their base hourly rate of pay.  Meaning I am back to square one.

 

Can you please tell me how I re-set my payroll to incorporate this change and be compliant with the ATO?  At what date does this all have to be completed by?  Is MYOB working on making changes to the program to allow for businesses that have to pay allowances which are incorporated as a base hourly rate of pay?  I have heard Xero have extended the date to March 2023 to be compliant as they are re-writting parts of their program, does MYOB have the same extension in place?

 

Help, please, there are alot of us that have these issues and no answers.

 

Kind regards

2 Replies

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  • tns05's avatar
    tns05
    Experienced Cover User

    Hi

     

    I have posted my below issue a couple times now with no response whatsoever!  Can someone at MYOB please assist me with this issue or update me if any changes to MYOB are going to be made to accomodate this required change by the ATO for STP.  The deadline is looming and I (and many other of your users in the construction industry) need to find a way quickly to deal with this issue.  If you have no answers, please let me know and I will start looking for a payroll solution that does have the answers.

     

    Kind regards

     

    I have set up my payroll to be compliant with STP 2 however, I have just learned that the all purpose allowances that form part of the hourly rate for our staff need to be separated and reported for different categories.

     

    Under the new STP system, I need to deduct an Electrical Licence allowance, tool allowance and industry allowance from the current single hourly rate of pay and report each allowance separately. Each employee is on a different rate of pay, each employee has different allowance rates eg: trades, each level of apprentices etc. Our Award stipulates that the above mentioned allowances form part of the base hourly rate of pay.

     

    Using $40/hour as an example for a tradesperson that is full time - I would need to deduct the allowances from his current single base rate to give them a new single hourly rate of $35.00/hr and then have a payroll category set up for each allowance and allocate the amounts accordingly, which add up to $5.00/hr. This means said trades is still earning his $40/hr - normal time earnings.

     

    Now where I am having issues in trying to wrap my head around this crazy new system:

     

    Under the award/fairwork, these allowances that I now have to separate, all form part of the employees single base hourly rate of pay - $40.00/hour. Overtime is calculated on this hourly rate - $40/hr. If I separate all the allowances out of their current hourly rate, which lowers their base hourly rate of pay, how do I continue to pay my employee the correct overtime amounts on $40/hr? Do I need to need to set up overtime categories for every allowance I have to pay?

     

    Other areas that are also affected and I need answers on how to set up and make sure my obligations are being met to fairwork and my staff and the ATO:

     

    RDO, Annual Leave, Leave Loading & Sick pay - all of this is currently paid at $40/hour. How do I complete payroll ensuring that when our staff take any leave, it is being calculated at $40/hr and not the new lower base rate?

     

    MYOB Reporting - Currently, I can view an entitlement report displaying all hours & full amounts we owe staff for Annual leave, RDO's & Sick pay. These amounts displayed in this report are at the current base hourly rate of pay - $40/hr. Once allowances are separated out of the hourly rate of pay and a new lower hourly rate of pay is entered, all $$$ value amounts on these reports will be incorrect. As they are supposed to be paid $40/hr base rate, all amounts displayed on these reports need to reflect $40/hr. How do I set up payroll so correct amounts based on $40/hr are shown in these reports? As a business, we need to see $$$$ amounts when budgeting, so do we now lose this function from MYOB as the amounts will be incorrect?

     

    I have thought of just leaving my staff at their currently base hourly rate of pay and then paying the allowances on top as a payrise (even though all allowances are already incorporated in their hourly rate) however, this still doesn't work as our award stipulates that the allowances I have to separate out form part of their base hourly rate of pay. Meaning I am back to square one.

     

    Can you please tell me how I re-set my payroll to incorporate this change and be compliant with the ATO? At what date does this all have to be completed by? Is MYOB working on making changes to the program to allow for businesses that have to pay allowances which are incorporated as a base hourly rate of pay? I have heard Xero have extended the date to March 2023 to be compliant as they are re-writting parts of their program, does MYOB have the same extension in place?

     

    Help, please, there are alot of us that have these issues and no answers.

     

    Kind regards

    • Jen_M's avatar
      Jen_M
      Experienced Cover User

      Hi tns05 ,

       

      There is a response from Steven_M at the end of this thread Solved: STP 2 All purpose allowances - MYOB Community , though it doesn't give specific guidance on what to set up.  I have been advised by MYOB that there will not be a further extension for STP 2 reporting.

       

      I guess that means the $ values on the entitlement reports will not be correct for now.  We will need to add in any all purpose allowance amounts ourselves - unless someone knows a way to include them in the reports...?

       

      Regards,

      Jenny

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ETC","id":"message:785829","revisionNum":1,"repliesCount":2,"author":{"__ref":"User:user:129859"},"depth":0,"hasGivenKudo":false,"board":{"__ref":"Forum:board:Staffing_and_Payroll"},"conversation":{"__ref":"Conversation:conversation:785829"},"readOnly":true,"editFrozen":false,"moderationData":{"__ref":"ModerationData:moderation_data:785829"},"body":"

Hi

 

I have set up my payroll to be compliant with STP 2 however, I have just learned that the all purpose allowances that form part of the hourly rate for our staff need to be separated and reported for different categories.

 

Under the new STP system, I need to deduct an Electrical Licence allowance, tool allowance and industry allowance from the current single hourly rate of pay and report each allowance separately.  Each employee is on a different rate of pay, each employee has different allowance rates eg: trades, each level of apprentices etc.  Our Award stipulates that the above mentioned allowances form part of the base hourly rate of pay.

 

Using $40/hour as an example for a tradesperson that is full time - I would need to deduct the allowances from his current single base rate to give them a new single hourly rate of $35.00/hr and then have a payroll category set up for each allowance and allocate the amounts accordingly, which add up to $5.00/hr.  This means said trades is still earning his $40/hr - normal time earnings.

 

Now where I am having issues in trying to wrap my head around this crazy new system:

 

Under the award/fairwork, these allowances that I now have to separate, all form part of the employees single base hourly rate of pay - $40.00/hour.  Overtime is calculated on this hourly rate - $40/hr.  If I separate all the allowances out of their current hourly rate, which lowers their base hourly rate of pay, how do I continue to pay my employee the correct overtime amounts on $40/hr?  Do I need to need to set up overtime categories for every allowance I have to pay? 

 

Other areas that are also affected and I need answers on how to set up and make sure my obligations are being met to fairwork and my staff and the ATO:

 

Super - Currently, staff are paid super on their ordinary time earnings, which, using the above example, is based on 38 hours @ $40/hr.  If I separate allowances out of their current hourly rate of $40/hr, this then lowers the base hourly rate to $35/hr and super is then calculated on this lower amount. How do I set up super to incorporate the allowances and ensure they are still being paid the correct amount of super based on $40/hr?  If super is paid on the lower rate, I am not fulfilling our obligations correctly.

 

RDO, Annual Leave, Leave Loading & Sick pay - all of this is currently paid at $40/hour.  How do I complete payroll ensuring that when our staff take any leave, it is being calculated at $40/hr and not the new lower base rate?

 

MYOB Reporting - Currently, I can view an entitlement report displaying all hours & full amounts we owe staff for Annual leave, RDO's & Sick pay.  These amounts displayed in this report are at the current base hourly rate of pay - $40/hr.  Once allowances are separated out of the hourly rate of pay and a new lower hourly rate of pay is entered, all $$$ value amounts on these reports will be incorrect.  As they are supposed to be paid $40/hr base rate, all amounts displayed on these reports need to reflect $40/hr.  How do I set up payroll so correct amounts based on $40/hr are shown in these reports?  As a business, we need to see $$$$ amounts when budgeting, so do we now lose this function from MYOB as the amounts will be incorrect?

 

I have thought of just leaving my staff at their currently base hourly rate of pay and then paying the allowances on top as a payrise (even though all allowances are already incorporated in their hourly rate) however, this still doesn't work as our award stipulates that the allowances I have to separate out form part of their base hourly rate of pay.  Meaning I am back to square one.

 

Can you please tell me how I re-set my payroll to incorporate this change and be compliant with the ATO?  At what date does this all have to be completed by?  Is MYOB working on making changes to the program to allow for businesses that have to pay allowances which are incorporated as a base hourly rate of pay?  I have heard Xero have extended the date to March 2023 to be compliant as they are re-writting parts of their program, does MYOB have the same extension in place?

 

Help, please, there are alot of us that have these issues and no answers.

 

Kind regards

","body@stringLength":"4560","rawBody":"

Hi

 

I have set up my payroll to be compliant with STP 2 however, I have just learned that the all purpose allowances that form part of the hourly rate for our staff need to be separated and reported for different categories.

 

Under the new STP system, I need to deduct an Electrical Licence allowance, tool allowance and industry allowance from the current single hourly rate of pay and report each allowance separately.  Each employee is on a different rate of pay, each employee has different allowance rates eg: trades, each level of apprentices etc.  Our Award stipulates that the above mentioned allowances form part of the base hourly rate of pay.

 

Using $40/hour as an example for a tradesperson that is full time - I would need to deduct the allowances from his current single base rate to give them a new single hourly rate of $35.00/hr and then have a payroll category set up for each allowance and allocate the amounts accordingly, which add up to $5.00/hr.  This means said trades is still earning his $40/hr - normal time earnings.

 

Now where I am having issues in trying to wrap my head around this crazy new system:

 

Under the award/fairwork, these allowances that I now have to separate, all form part of the employees single base hourly rate of pay - $40.00/hour.  Overtime is calculated on this hourly rate - $40/hr.  If I separate all the allowances out of their current hourly rate, which lowers their base hourly rate of pay, how do I continue to pay my employee the correct overtime amounts on $40/hr?  Do I need to need to set up overtime categories for every allowance I have to pay? 

 

Other areas that are also affected and I need answers on how to set up and make sure my obligations are being met to fairwork and my staff and the ATO:

 

Super - Currently, staff are paid super on their ordinary time earnings, which, using the above example, is based on 38 hours @ $40/hr.  If I separate allowances out of their current hourly rate of $40/hr, this then lowers the base hourly rate to $35/hr and super is then calculated on this lower amount. How do I set up super to incorporate the allowances and ensure they are still being paid the correct amount of super based on $40/hr?  If super is paid on the lower rate, I am not fulfilling our obligations correctly.

 

RDO, Annual Leave, Leave Loading & Sick pay - all of this is currently paid at $40/hour.  How do I complete payroll ensuring that when our staff take any leave, it is being calculated at $40/hr and not the new lower base rate?

 

MYOB Reporting - Currently, I can view an entitlement report displaying all hours & full amounts we owe staff for Annual leave, RDO's & Sick pay.  These amounts displayed in this report are at the current base hourly rate of pay - $40/hr.  Once allowances are separated out of the hourly rate of pay and a new lower hourly rate of pay is entered, all $$$ value amounts on these reports will be incorrect.  As they are supposed to be paid $40/hr base rate, all amounts displayed on these reports need to reflect $40/hr.  How do I set up payroll so correct amounts based on $40/hr are shown in these reports?  As a business, we need to see $$$$ amounts when budgeting, so do we now lose this function from MYOB as the amounts will be incorrect?

 

I have thought of just leaving my staff at their currently base hourly rate of pay and then paying the allowances on top as a payrise (even though all allowances are already incorporated in their hourly rate) however, this still doesn't work as our award stipulates that the allowances I have to separate out form part of their base hourly rate of pay.  Meaning I am back to square one.

 

Can you please tell me how I re-set my payroll to incorporate this change and be compliant with the ATO?  At what date does this all have to be completed by?  Is MYOB working on making changes to the program to allow for businesses that have to pay allowances which are incorporated as a base hourly rate of pay?  I have heard Xero have extended the date to March 2023 to be compliant as they are re-writting parts of their program, does MYOB have the same extension in place?

 

Help, please, there are alot of us that have these issues and no answers.

 

Kind regards

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Hi

 

I have posted my below issue a couple times now with no response whatsoever!  Can someone at MYOB please assist me with this issue or update me if any changes to MYOB are going to be made to accomodate this required change by the ATO for STP.  The deadline is looming and I (and many other of your users in the construction industry) need to find a way quickly to deal with this issue.  If you have no answers, please let me know and I will start looking for a payroll solution that does have the answers.

 

Kind regards

 

I have set up my payroll to be compliant with STP 2 however, I have just learned that the all purpose allowances that form part of the hourly rate for our staff need to be separated and reported for different categories.

 

Under the new STP system, I need to deduct an Electrical Licence allowance, tool allowance and industry allowance from the current single hourly rate of pay and report each allowance separately. Each employee is on a different rate of pay, each employee has different allowance rates eg: trades, each level of apprentices etc. Our Award stipulates that the above mentioned allowances form part of the base hourly rate of pay.

 

Using $40/hour as an example for a tradesperson that is full time - I would need to deduct the allowances from his current single base rate to give them a new single hourly rate of $35.00/hr and then have a payroll category set up for each allowance and allocate the amounts accordingly, which add up to $5.00/hr. This means said trades is still earning his $40/hr - normal time earnings.

 

Now where I am having issues in trying to wrap my head around this crazy new system:

 

Under the award/fairwork, these allowances that I now have to separate, all form part of the employees single base hourly rate of pay - $40.00/hour. Overtime is calculated on this hourly rate - $40/hr. If I separate all the allowances out of their current hourly rate, which lowers their base hourly rate of pay, how do I continue to pay my employee the correct overtime amounts on $40/hr? Do I need to need to set up overtime categories for every allowance I have to pay?

 

Other areas that are also affected and I need answers on how to set up and make sure my obligations are being met to fairwork and my staff and the ATO:

 

RDO, Annual Leave, Leave Loading & Sick pay - all of this is currently paid at $40/hour. How do I complete payroll ensuring that when our staff take any leave, it is being calculated at $40/hr and not the new lower base rate?

 

MYOB Reporting - Currently, I can view an entitlement report displaying all hours & full amounts we owe staff for Annual leave, RDO's & Sick pay. These amounts displayed in this report are at the current base hourly rate of pay - $40/hr. Once allowances are separated out of the hourly rate of pay and a new lower hourly rate of pay is entered, all $$$ value amounts on these reports will be incorrect. As they are supposed to be paid $40/hr base rate, all amounts displayed on these reports need to reflect $40/hr. How do I set up payroll so correct amounts based on $40/hr are shown in these reports? As a business, we need to see $$$$ amounts when budgeting, so do we now lose this function from MYOB as the amounts will be incorrect?

 

I have thought of just leaving my staff at their currently base hourly rate of pay and then paying the allowances on top as a payrise (even though all allowances are already incorporated in their hourly rate) however, this still doesn't work as our award stipulates that the allowances I have to separate out form part of their base hourly rate of pay. Meaning I am back to square one.

 

Can you please tell me how I re-set my payroll to incorporate this change and be compliant with the ATO? At what date does this all have to be completed by? Is MYOB working on making changes to the program to allow for businesses that have to pay allowances which are incorporated as a base hourly rate of pay? I have heard Xero have extended the date to March 2023 to be compliant as they are re-writting parts of their program, does MYOB have the same extension in place?

 

Help, please, there are alot of us that have these issues and no answers.

 

Kind regards

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Hi tns05 ,

 

There is a response from Steven_M at the end of this thread Solved: STP 2 All purpose allowances - MYOB Community , though it doesn't give specific guidance on what to set up.  I have been advised by MYOB that there will not be a further extension for STP 2 reporting.

 

I guess that means the $ values on the entitlement reports will not be correct for now.  We will need to add in any all purpose allowance amounts ourselves - unless someone knows a way to include them in the reports...?

 

Regards,

Jenny

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