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Jobkeeper top up category setup

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Feebie
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Jobkeeper top up category setup

Hi - so it looks like I have setup the Jobkeeper Topup category incorrectly reporting as gross wages (it's taxed with the rest of the wages paid, so it seemed right at the time...) -  I see now that maybe it should have been "Other Allowances".  Everything has gone thru to ATO reporting, everything has been paid by the ATO and all that were on Jobkeeper ended at the end of December.  But was just going over "things" and have noticed now that it maybe should have been an "other allowance" and not gross wages.

 

Am I right in saying that Allowances get added back into gross wages for tax purposes anyway?  Is this something that I need to now correct - or just leave it be?

If I need to correct it, what is the easiest way to do this?  Just an internal adjustment of some sort and the next pays sent thru to ATO will rectify their records - or is it deeper than that??.... oh my.....

 

Appreciate your help in this. Ta.

 

 

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Tracey_H
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Re: Jobkeeper top up category setup

Hi @Feebie 

 

Thanks for your post. The ATO rules for JobKeeper are that all payroll categories and notifications need to be reported under the ATO reporting category Allowance - Other. You're correct that Allowances are added to the Gross wages amount to make up the employee's total income. However the ATO want the top up amounts reported separately as allowances so I would recommend fixing the top up reporting.

 

It's an easy fix, just change the ATO reporting category for the JOBKEEPER-TOPUP payroll category to Allowance - Other. Then process a $0 pay with payment date as today, wait until the report has been accepted then check if the top up amount is being reported as an allowance. To check this go to the Payroll reporting centre>>EOFY finalisation tab>>click on the ellipsis (...) for one employee and select Download report. The top up amount should now be reported under allowances.

 

Please let me know if you need further help.

 

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

Cheers,
Tracey
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Feebie
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Re: Jobkeeper top up category setup

Thank you - I will try it out and let you know Smiley Happy

Feebie
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Re: Jobkeeper top up category setup

Hit a little bit of a snag...  in one company file this solution worked fine.  Then I applied the same process to another company file - set up exactly the same - waited for the 0 pay to be accepted by ATO - went to report but it was unchanged.  (ie) no "Other Allowance" category even displays. 

I've tried closing the file and re-opening - but nothing changes with this one

Any ideas?

Tracey_H
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Accepted Solution Solved

Re: Jobkeeper top up category setup

Hi @Feebie 

 

Run the Payroll Activity Detail report and check if the amount has moved from the wage category to the JobKeeper top up category. That will tell us whether it's been fixed in AccountRight but hasn't flowed through to STP yet. 

 

If the Activity report does show the top up amount against the top up category, check that when you changed the ATO reporting category to Allowance, that change stuck. Then process another $0 pay, wait and then check the Summary of Payments report.

 

If the amount hasn't moved in the Activity report process another $0 pay but this time:

  1. zero out all amounts and hours
  2. enter the top up amount as a negative against the applicable base hourly payroll category
  3. enter the top up amount as a positive against the JobKeeper top up category
  4. net pay should still be zero

Wait until that pay has been accepted and then check the Summary of Payments report.

 

Let me know how you go.

Cheers,
Tracey
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Feebie
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Re: Jobkeeper top up category setup

Hit a little bit of a snag...  in one company file this solution worked fine.  Then I applied the same process to another company file - set up exactly the same - waited for the 0 pay to be accepted by ATO - went to report but it was unchanged.  (ie) no "Other Allowance" category even displays. 

I've tried closing the file and re-opening - but nothing changes with this one

Any ideas?

Feebie
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Re: Jobkeeper top up category setup

All good - many thanksSmiley Happy

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