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HoneySandra's avatar
HoneySandra
Experienced Cover User
10 months ago

Why are allowances not included in Total STP taxable wages??

I have printed a YTD verification report and noticed that when the ATO reporting categories are all broken down, they do not include the allowances.

 

As an example: The total salaray and wages as per payroll summary show:  $100,000 

 

BUT, the Total STP taxable wages show $90,000

 

and then the Allowances are shown separately as $10,000

 

My allowance category should be a taxable item - why does the report print this way???

 

I have correctly assigned it, all my other figures are correct, it's just the breakdown that has me worried. This particular allowance forms part of ordinary time earnings as per the award, and has always been taxable.

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  • BreeDeCunha's avatar
    BreeDeCunha
    Experienced User
    10 months ago

    Hi HoneySandra

     

    I also had your question, I found this on MYOB:

     

    • This report shows the total of all ATO reporting category amounts sent to the ATO for all employees.
    • The Reconciliation to Payroll section is not sent to the ATO. It shows total gross wages which you'll also see in the Payroll Summary report in MYOB. This amount will differ from the total gross wages reported to the ATO, as it doesn’t include Allowances, CDEP, Foreign Income, ETP components (not ETP Tax), Lump Sum values or any additional reimbursable/employee expenses.
    • The ATO Reporting Category section lists the things that have been submitted to the ATO.
    • The Total payments (in the ATO Reporting Category section) doesn't include allowances. This amount should be the same as what's shown in your Payroll Summary report in MYOB, minus any allowances or the other pay components which are listed in the Reconciliation to Payroll section.

    This is the link

    End of year finalisation with Single Touch Payroll reporting - MYOB Business - MYOB Help Centre

     

    I don't think it's very clear the way it is set out and worded!

    • HoneySandra's avatar
      HoneySandra
      Experienced Cover User
      10 months ago

      Thank you BreeDeCunha 

       

      So, from this blurb,  I have found my figures to be correct, but it is VERY confusing, and wondering if this is the ATO's way of wanting things done, or is it just how MYOB is set up to send the figures over.

       

      Anyway, no doubt if it's wrong, the ATO will let me know

      • gavin12345's avatar
        gavin12345
        Ultimate User
        10 months ago

        Hi HoneySandra 

         

        The design of reports and screens on MYOB's payroll reporting centre is all on MYOB. The ATO prefers developers made things simple and clear and accurate for users.

         

        And the ATO will only tell you something is wrong if the report format does not comply with specifications, such as a date is entered in an amount field, or other invalid data is reported, they cannot tell if the amounts are correct or not. The ATO relies on employers to report the correct amounts base don their payroll records.

         

        Due to MYOB's design, the only way to tell if the correct details were reported is to check on employee's Income Statements. If you are an employee, check yours is correct.

         

        Regards

        Gavin