Hey Leebath,
I'm having the same issue, have you solved your problem?
Unfortunately no!
I think we may have to change all of the 'not reportable' deductions for lease payments to Salary Sacrifice - and hope that they are reported as 'O' type?
It is really not good enough that MYOB instructions on how to create deductions and set up STP Phase 2 is not clear. The advice on the website (which i suspect most people followed) is that 'car payments' are 'Not reportable' and then to make sure the deduction is PAYG exempt - and that the deduction from the Gross Income is made (behind the scenes). Well, in our case it has not worked.
Hi leebath
The reason I mentioned to changing the category from Not Reportable to an ATO Reporting category is because previously, (and for users who are still on that version) For STP Phase 1 the Salary Sacrifice would not show on the verification report, but will just reduce the wages amount as it is a deduction.
However, the ATO changed the reporting requirements for salary sacrifice arrangements in STP Phase 2. They now require the full gross amount to be reported, not the reduced amount. If a deduction reduces the employee's gross income you need to select the applicable ATO reporting category to ensure the deduction is reported in STP.
The ATO reporting category, Salary sacrifice - other employee benefits, should be used for deductions that are for benefits from an effective salary sacrifice arrangement. If you're not sure which ATO reporting category applies to your situation we recommend speaking to the ATO or your accountant.
I've had a look at the instructions you referred to. That is a Community Forum post dated from before STP Phase 2 was introduced with advice from another user. This MYOB Help Article, has instructions and information on how to set up and process Deductions amounts: Assign ATO reporting categories for Single Touch Payroll reporting.
If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.
Hi,
Thanks for the reply. I understand the STP Phase2 requirements for reporting Gross Income and or what I sent was a link to an old post - but it is consistent with current advice and even the link you sent, which has under 'Not Reportable' - "This includes payroll categories like loan or car payments."
What isn't explained by MYOB is how we ensure that the Salary Sacrifice is coded as type 'O' so that it is distinguished from an 'S' type deduction (which is for superannuation).
Can you shed some light on how MYOB sends the information to the ATO so the deduction is recognised as an 'O' type?
And how do we reverse/fix what has been sent to the ATO so that the employees taxable income can be reduced by the deductions?
Hi leebath
Sorry for the delay in response. It really depends on which specific category you are using. There are 2 different types of categories called Salary Sacrifice. There is a Salary Sacrifice Superannuation and a Salary Sacrifice Arrangement but also you mentioned a Deduction for car payments which would be a different category again.
So depending on what this payment is categorised under, would depend on what reporting category you might use.
For example:
If you are unsure which category to use in your specific situation, we recommend that you consult your accountant or the ATO to ensure you are entering all your tax obligations correctly.
If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.
Hi
I am using the latest version of MYOB and I dont have an option in the payroll categories field to apply "salary sacrifice" to the PRE tax salary packaging amounts deducted. Would someone take screen shot and share this with me so I can see what I am looking for.
Thanking you in advance.
L
Hi There,
Sorry for the delay in response, hopefully this helps:
hi leebath,
Have you fixed iy for your employee? I have one employee chasing me for it. I am not sure how can i fix it now.
Kind regards,
ND
To correct the situation presented by leebath the following steps were taken:
The correct records will now be appearing with the ATO. If the employee has commenced their tax return they may have to contact the ATO to update their payment summary details.
Hi KatCT ,
Thank a lot for explaining the process. I folllowed it and i can see pre-tax salary sacrifice deduction amount in verfication report now.
Gross wages are reported as inlcuding pre-tax salary sacrifice but that seems like new ATO requirement so seems it is all correct from our end now.
Kind regards
ND
Hi,
See the response from KatCT. We eventually worked out how to fix it.
No assistance from MYOB unfortunately.
