Assigning a specific category in STP2 for cents/km allowance paid in payroll

[Gina4m]

I have a c/km allowance that has been paid and taxed through payroll.  When assigning a categoy in STP2, I am receiving error messages from ATO when i try to send the payroll through to Payroll Reporting. I have tried all obvious categories, but the message is the same:  "Allowance items must be left blank"

I cannot find a way to do this, especially as the item is taxable. Further, the item is noted on the MYOB help site table - the final instruction is to assign to Gross Payments when it doesn't fit into another category. This is not accepted either.

Any ideas?

I am also receiving a rejection re a casual, paid hourly employee who does not receive paid leave which states that "Paid leave must be left blank". there are no leave categories that apply to this employee.

[Tracey_H]

Hi @Gina4m 

Thanks for your post. Both of those errors indicate the issue is the Income type selected in the employee card>>Payroll details tab>>Taxes>>Income type. The ATO don't allow some payment types for specific Income types, for example, if Labour hire is selected as the Income type, the ATO don't allow payments of overtime and leave for Labour hire. You will need to confirm the correct Income type is selected.

Please let me know how you go.

If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.

[Gina4m]

Thank you Tracey,

I have made the changes you suggested, but I have no idea if the ATO will accept them in STP2, and cannot find out until I send through the next payrun.

I will let you know next week if this has worked.

It is not a question of overtime or “paid leave must be left blank”, as neither of the two with errors have those. It’s the “allowances items must be left blank” that causes the problem I think.

Gina

[Tracey_H · Accepted solution]

Hi @Gina4m 

Any errors that relate to "xxxx must be left blank" are generally caused by an incorrect Income Type selected in the employee card. You can check if the error has been resolved before the next pay run by processing a $0 pay for those employees, wait until that report has been sent and then check the Status. 

If you continue to get errors please let me know.

If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.

[Gina4m]

Hi Tracey H

The zero payroll had come back accepted, so your instructions did the trick.

Thank you for your assistance.

Gina4m

[Tracey_H]

Hi @Gina4m 

That's great to hear, thanks for letting me know.

Please don't hesitate to post again if you need help in the future.