Forum Discussion

Llewellyn's avatar
Llewellyn
Partner
5 years ago
Solved

Employees ETP and tax withheld not recorded in STP figures

One of our employees received an ETP for unused RDO's that were paid out when he left. These were taxed at a special rate of 32% as required. Based on the MYOB instructions for recording these paymen...
  • Tracey_H's avatar
    Tracey_H
    5 years ago

    Hi Llewellyn 

     

    The ATO reporting categories need to be assigned according to the ATO guidelines, so the tax on that ETP payment does need to be reported as a deduction with the reporting category ETP - Tax Withheld.

     

    With regard to your BAS, you need to select the ETP - Tax Withheld category in the set up for the W2 field. This will pull that amount into the BAS figures.

     

    Please let me know if you need further help.

Tracey_H's avatar
Tracey_H
Former Staff

Hi Llewellyn 

 

When you delete and reprocess a termination pay that includes an ETP you also need to delete that ETP from the Payroll Reporting Centre by doing the following:

 

  1. Click Payroll in the command centre
  2. Click Payroll Reporting 
  3. Click Payroll Reporting Centre 
  4. Click Employee Terminations tab 
  5. Find the employee and click the 3 dots next to their name 
  6. Select "Remove ETP" 
  7. Select the duplicate payments 
  8. Once it is removed then process a $0.00 payrun for the employee to update the ATO of the new YTD totals

That should resolve your first issue. As for the second issue, when you created the ETP Tax Withheld category you created it in the Deductions tab so it will appear in the Deduction column in the Payroll Activity and Register reports. 

 

Please let me know if you have further issues.

 

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

Llewellyn's avatar
Llewellyn
Partner
5 years ago

Thanks Tracey. Is it possible to add a new tax categoryfor the ETP Tax Withheld? The drop down box only shows PAYG Withholding and as far as I can see there is no way to add extra categories. Googling doesn't come up with any answers about whether it can be done. Do I just have to leave the tax on the ETP as a "deduction" and add it to the tax amount when I complete the BAS? Thanks

  • Tracey_H's avatar
    Tracey_H
    Former Staff
    5 years ago

    Hi Llewellyn 

     

    The ATO reporting categories need to be assigned according to the ATO guidelines, so the tax on that ETP payment does need to be reported as a deduction with the reporting category ETP - Tax Withheld.

     

    With regard to your BAS, you need to select the ETP - Tax Withheld category in the set up for the W2 field. This will pull that amount into the BAS figures.

     

    Please let me know if you need further help.

    • Llewellyn's avatar
      Llewellyn
      Partner
      5 years ago

      Thanks Tracey, all fixed now.