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Lmcstack's avatar
Lmcstack
Experienced User
2 years ago

STP All Purpose Allowances MYOB non compliance

Hi,

 

Can someone please confirm whether MYOB has provided a solution for treating all purpose allowances?  I have been through multiple threads and cannot see that a solution has been forthcoming from MYOB re. this?

 

Whilst I understand that users can establish multiple pay codes in MYOB as a workaround, this is complex and time consuming and not really feasible.  I am aware that other software companies such as XERO have managed to provide a simple solution, yet from what I can tell there has been no such solution from MYOB.

 

With the absence of a solution, how do you suggest we process overtime and leave payments when the allowance is seperated out from Base Wages?  I'm having trouble finding any guidance on this?

 

 

 

 

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  • LisaTerese's avatar
    LisaTerese
    Experienced User
    2 years ago

    Hi Lmcstack

     

    I have just come across your post, and wish to ask what you determine to be 'all purposes allowances', please.

     

    I have set up additional payroll categories for my employee's allowances, (meals, overnight), and when doing so do not tick the box which reads 'Automatically Adjust Base Hourly or Base Salary Detals'.  By not ticking this, the amount/s of the Allowances do not become part of/added to the employee's base hourly wages or salary amount.

     

    I have set up payroll categories for Base Hourly, Additional Hours (overtime), Meal allowances (excluded from Gross amount), and Annual and Personal Leave Accruals set up as the required hours per pay period.

     

    I hope that this is of assistance, whilst also acknowledging that this may not be the answer that you are requiring.

     

    Kind regards

    LisaTerese

    • Lmcstack's avatar
      Lmcstack
      Experienced User
      2 years ago

      Hi Lisa,

       

      Thanks for your response.

       

      The All Purpose Industry allowance is usually included within the base hourly rate.  As such it is considered Ordinary Time Earnings.  Any overtime paid is calculated on the rate (inclusive of APIA) as well as all leave paid.  It is unlike other allowances which are considered an additional amount payable on top of the base hourly rate.

       

      Whilst it is simple enough to split out the All Purpose Allowance from the base hourly rate and create a seperate allowance code for this, what is not simple is the ability to then calculate overtime or leave payments.  For example, overtime is calculated as 150% of base earnings rate including the All Purpose Industry Allowance.  As MYOB would require the APIA to shown as a seperate allowance, It is not currently possible in MYOB to calculate overtime on anything other than the base hourly regular rate.

       

      The only way it would be possible to do this is to create multiple paycodes for each employee which is unfathomable and totally unworkable scenario.

       

      Like others, we have elected to not split out the APIA until such time as MYOB makes the changes which would make it STP2 compliant.

       

      I was wanting an update from MYOB but have had no response to date.

       

      Lynne

       

       

      • Lmcstack's avatar
        Lmcstack
        Experienced User
        2 years ago

        Hi there,

         

        Does anyone know whether MYOB have extended their STP Phase 2 deferral beyond 31st March 2023 or are they still maintaining that they are STP compliant?

         

        My understanding is that if the digital service provider does not apply for a deferral then as an employer we are required to apply to ATO and request one, explaining why we are seeking a delayed transition.

         

        As far as I'm aware, MYOB has still not as yet come up with a solution as to how we can efficiently treat and report All purpose allowances?

         

        Would appreciate your input?

         

        Thanks

        Lynne