Hi aiw,
Thank you for your response and your patience in waiting for a response.
Payroll categories marked as not reportable will still appear in the payroll activity and register report. However, they will not be included in the YTD verification report. When finalizing and sending reports like the YTD verification report and Summary of Payments to the ATO, the YTD amounts are pulled from the employee card's Pay History, filtered by the ATO reporting categories. For detailed information, please refer to this help page: Assign ATO reporting categories for Single Touch Payroll reporting.
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Regards,
Earl