I've had a query from an Accountant client of mine with regards to Salary Sacrifice being incorrectly reported as "Gross Wages". Now I think it's arguable from both angles but I guess maybe there needs to be an option for which payroll categories to include (or deduct) for the Gross Wages column on say the Payroll Activity Summary report?
The issue is, the accountant wants to be able to look at said report and cross check the total figure to the wages account on the P&L and to the total of the PAYG Payment summaries, which in this case were lodged incorrectly as the client had not ticked the box to include salary sacrifice superannuation as being part of the Gross Wages on the payment summary. Her defense was, "Well it matched the report".
Hi Jace it
The payroll activity summary would have agreed with the P & L but should not have agreed with Payment summaries until the sal sacrifice was deducted. The payment summaries would also not have agreed with what should have been reported to the ATO on the BAS, but I assume these were done wrong each quarter.
Salary Sacrifice in whatever form (expense payments, super etc) needs to have it's own column on the activity report to be able to distinguish the amount to reduce gross wages by when reporting on the BAS and to assist at year end reconciling and to get it out of being lumped with other deductions (eg child support, loan repayment etc).
I agree. I have requested the layout of the payroll report be changed too. Refer to my idea dated 07.12.12 and vote for it so we can finally get this changed.
ps I voted for yours too!
Hi ASWatCR, thanks for your suggestion to have this combined with your original post.
In looking through your posts for the 7/12/12 I'm not able to find one that seems related to this feature. Could you please provide a link to your original post so that Jace_IT_Figures is able to vote and comment on it to show support for it?
Kind Regards,
Matthew - MYOB Client Support.
Hi Matthew/Jace,
Here is the link below - I posted it just after midnight, so the date was actually 08/12/12!
Here is a copy of my post:
I find the payroll reports in MYOB don't make reconciliations as easy as what they could be i.e. all deductions/expenses are just lumped in together. My suggestion would be to use the report columns as follows:
(I believe there is work being done in this area - feel free to enlighten me about it if you know)
Gross Wages | Salary Sacrificed Super | Other Pre-Tax Deductions | Post Tax Deductions | Tax* | Net Pay | Superannuation Expenses | Other Expenses |
* I wonder if MYOB can have an ETP process whereby the ETP tax actually shows under tax as opposed to a deduction (which can be overlooked by a client when preparing their BAS).
Any updates/feedback welcome.
