Pre-tax Deductions not being Deducted from an Employees Gross Payment (Taxable Income)

[NDMYOB]

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

[NDMYOB]

Hi @SamaraM ,

Question is about Pre-Tax Novated lease deductions which are set up as "Not reportable" (as per MYOB guidlines) however employee expects his total gross wages will be reported as (gross wages-pretax deduction) but employee's gross wages are being reported as full amount without pretax deduction.

Please let us know what is the best way to fix this issue? Employee obviously is not happy having to pay more tax.

Appreciate you help.

Kind regards,

ND

[KatCT]

To correct the situation presented by @leebath the following steps were taken:

1. The Pre-tax Salary Sacrifice deduction was assigned the ATO Reporting Category "Salary Sacrifice - Other Employee Benefits" in MYOB.
2. The end of year finalisation for the 21-22FY was removed for the affected employee(s) 
3. A $0 pay was run for the affected employee(s) and reported to the ATO  
   Note:  Even if you are set up for STP Phase 2, do not recommend using the "Send update event" as this caused more issues needing to be corrected in MYOB
   
4. Once the STP report has been accepted by the ATO, re-finalise the employee(s) for the 21-22 year.

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.

[leebath]

Hi,

See the response from KatCT. We eventually worked out how to fix it.

No assistance from MYOB unfortunately. 

[NDMYOB]

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

[NDMYOB]

Hi @leebath,

Thank you for your response.

it is true that MYOB just ignores so many of our problems. They could simply have it in notes for Novated Lease set up under STP2.

Kind regards,

ND

[Lee12]

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

[KatCT]

Hi There,

Sorry for the delay in response, hopefully this helps:

[Effective121]

Brilliant - thank you for this information, very helpful!