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EOFY Payroll Variation for an Allowance Category (linked as Gross Wages)

RobynCW
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EOFY Payroll Variation for an Allowance Category (linked as Gross Wages)

Have run Verification Report and Payroll Summary. There is a non-travel Allowance for a salaried employee that appears to be setup correctly in MYOB for STP but amount has not been included in the Total Salary figure on Verification Report.   I've tried making some minor changes to Category (ie overridden Wages account) so it "refreshes" and run a $0 pay for employee dated 30/6/21 but no changes.  Any ideas?

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Yanike_S
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Re: EOFY Payroll Variation for an Allowance Category (linked as Gross Wages)

Hi @RobynCW 

 

Thanks for your post.

 

A difference in your Payroll Summary and YTD verification report generally indicates that the issue is being caused by ATO reporting categories that have not been assigned correctly or by payroll categories that have exempted from PAYG Withholding in error. Follow these steps to find and fix the issues:

  1. Run the Payroll Activity Detail report to narrow down which payroll categories are causing the problem.
  2. Check that the correct ATO reporting category has been assigned. Change the ATO reporting category as required.
  3. Check if the payroll category has been ticked exempt from PAYG in error (Payroll Categories>>open the category>>click on the Exempt button). Untick PAYG Withholding and click Ok.
  4. Once you have made the necessary changes to the payroll category, process a $0 pay to update STP.

 

Let me know if that solves it for you!

Kind regards,
Yanike

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RobynCW
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Re: EOFY Payroll Variation for an Allowance Category (linked as Gross Wages)

Hi.

Unfortunately, the problem has not been corrected through the process listed below (unless I needed to run a $0 for all employees not just the one with the error).  However, I feel the reason for the error is probably correct ie a conflict between the reporting category and the PAYG status of the allowance. Noting that I have already been in contact with a transport industry bookkeeper regarding the category for the allowance, can you recommend what would be the expected setup in MYOB for this scenario:  A salaried employee receives an extra amount each week to cover Non-Travel out of pocket expenses. I have it as Gross Payments but willing to change to Allowance - Other if this would not be against ATO guidelines.  Or, is there something else I can check in MYOB? There is only one employee receiving this allowance. A response today would be gratefully received as I work 1 day per week and would like to close off the 2021 year.

Yanike_S
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Re: EOFY Payroll Variation for an Allowance Category (linked as Gross Wages)

Hi @RobynCW 

 

You will have to check with the ATO which reporting category to use, as we are not permitted to give this type of information.

 

If the ATO reporting category is gross wages, it will be included in the gross wages section in STP.

 

If the ATO reporting category is allowance-other, it is reported separately under allowances not included in gross wages.

 

In this article you can see how these different categories should appear on your report: Understanding the YTD verification report. 

Kind regards,
Yanike

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RobynCW
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Re: EOFY Payroll Variation for an Allowance Category (linked as Gross Wages)

Hi.

I am fully aware of this (why I included the note about the previous discussion with industry bookkeeper) so was asking you as someone who has looked at MYOB a lot and would have some personal experience on what category businesses have used in STP reporting for non-travel allowances. ATO can't give advice on what is going wrong in a software program.

Something is glitching in the process; trying to work out what can be adjusted.  Any other ideas on what to try?

Yanike_S
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Re: EOFY Payroll Variation for an Allowance Category (linked as Gross Wages)

Hi @RobynCW 

 

The YTD verification report gets its data from the Employee Card>>Pay History and filters those amounts by the ATO reporting categories assigned to the payroll categories. If a payroll category is not being reported through STP as expected, it indicates that the wrong ATO reporting category has been assigned.
 
The other reason a payroll category will be excluded from STP is if it has been exempted from PAYG calculations. You haven't clarified if this is the case for the problem payroll category. If it has been exempted, you need to untick that option and then process a $0 pay with payment date as 30 June.
 
As previously explained, I am not permitted to give advice on the applicable ATO Reporting Category to use, that is something that only tax agents and the ATO are allowed to do.
 
Please feel free to send me screenshots by private message of the Payroll Activity detail, Payroll Register detail and summary of payments reports.

Kind regards,
Yanike

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RobynCW
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Re: EOFY Payroll Variation for an Allowance Category (linked as Gross Wages)

Hi 

Thanks for the extra information and will send through screen shots as requested via private message.  In answer to the Category/PAYG Exempt; yes it was incorrectly flagged as exempt.  I removed this; saved it (even closed and reopened MYOB), ran a $0 payroll as at 30/6/2021 for the employee effected without success. 

 

RobynCW
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Re: EOFY Payroll Variation for an Allowance Category (linked as Gross Wages)

Thank you for your help last week.  Thought you might like to know that the figures are now correct without me needing to do any further work within MYOB today.  I hoped, due to previous experiences, that the release of an updated version would clear whatever error was conflicting within the program and this seems to have been a correct assumption.

Yanike_S
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Re: EOFY Payroll Variation for an Allowance Category (linked as Gross Wages)

Hi @RobynCW 

 

Thanks for the update! I am glad the updated version of AccountRight has solved this for you. 

 

Don't hesitate to come back to the Community Forum if you have any issues in the future!

Kind regards,
Yanike

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