Forum Discussion
Hi,
Thanks for the reply. I understand the STP Phase2 requirements for reporting Gross Income and or what I sent was a link to an old post - but it is consistent with current advice and even the link you sent, which has under 'Not Reportable' - "This includes payroll categories like loan or car payments."
What isn't explained by MYOB is how we ensure that the Salary Sacrifice is coded as type 'O' so that it is distinguished from an 'S' type deduction (which is for superannuation).
Can you shed some light on how MYOB sends the information to the ATO so the deduction is recognised as an 'O' type?
And how do we reverse/fix what has been sent to the ATO so that the employees taxable income can be reduced by the deductions?
Hi leebath
Sorry for the delay in response. It really depends on which specific category you are using. There are 2 different types of categories called Salary Sacrifice. There is a Salary Sacrifice Superannuation and a Salary Sacrifice Arrangement but also you mentioned a Deduction for car payments which would be a different category again.
So depending on what this payment is categorised under, would depend on what reporting category you might use.
For example:
- A Salary Sacrifice Superannuation Category is a Super Payroll Category, which would normally be assigned to Salary Sacrifice or RESC.
- A Salary Sacrifice Arrangement for something like a car is a Deduction Payroll Category, which would normally be Other Employee Benefits.
- If it's a deduction for a loan or car repayment and not a Salary Sacrifice Arrangement, then you would normally use Not Reportable as the category.
If you are unsure which category to use in your specific situation, we recommend that you consult your accountant or the ATO to ensure you are entering all your tax obligations correctly.
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- NDMYOB2 years agoExperienced User
Hi,
I also have same issue in STP2 for Novated Lease and need to fix FY22 reported amount with ATO. Gross amount that is reported includes pre tax wages and I do not know where to allocate it to reduce gross wages.
Appreciate a clear solution to this problem.
Kind regards,
ND
- NDMYOB2 years agoExperienced User
Hi SamaraM ,
Question is about Pre-Tax Novated lease deductions which are set up as "Not reportable" (as per MYOB guidlines) however employee expects his total gross wages will be reported as (gross wages-pretax deduction) but employee's gross wages are being reported as full amount without pretax deduction.
Please let us know what is the best way to fix this issue? Employee obviously is not happy having to pay more tax.
Appreciate you help.
Kind regards,
ND