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STP - Final Submission - Salary Sacrifice Adjustment

Richard4
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STP - Final Submission - Salary Sacrifice Adjustment

I'll preface my question by acknowledging that AccountEdge Pro is not suitable for STP Phase 2. Still working on that.

 

I had an employee who salary sacrificed a portable e-device during the year. The salary sacifice was set up as recommended by MYOB (https://help.myob.com/wiki/pages/viewpage.action?pageId=10225760) - setting up a deduction payroll category. This category has existed in our payroll for a number of years. When I went to lodge my final STP report, I realised that this payroll category has 'Not Reportable' as the ATO Reporting Category and with no option to give it a meaningful ATO Reporting Category - e.g. Gross Payments. This means that the employee's Gross Salary is being incorrectly reported as the salary sacrifice amount is not be deducted from it. I tried putting through a payroll adjustment by reversing the salary sacrifice deduction and entering a negative amount against wages - a void transaction - but this did not reduce the Gross Amount in the final STP report to be sent to the ATO. It seems MYOB is not recognising the adjustment (Void) payroll transaction. I'm hesitant to try reversing the original transaction from Dec 2021 and re-entering given my first solution has not worked. 

 

Does anyone have any suggestions on how I can get MYOB to report the correct Gross Amount for my employee.

 

Thanks

Richard

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Re: STP - Final Submission - Salary Sacrifice Adjustment

Hi Richard

 

The correct ATO Reporting category for this is Salary Sacrifice - other employee benefits.

 

The transaction you did doesn't sound correct and I suggest you reverse it.

 

Fix the ato reporting category and just process a nil pay for the employee and see if that fixes the issue

 

Depending on whether you are STP or STP2 determines how sal sac is reported against gross wages

 

STP2 shows All grossed up wages and sal sac

 

STP shows gross wages as gross wages - sal sac

 

Hope that helps

 

Lisa

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Re: STP - Final Submission - Salary Sacrifice Adjustment

Hi Lisa

 

thanks for responding to my question. I'm using AccountEdge Pro for Mac (ver. 18.7) and 'Salary Sacrifice - other employee benefits' is not available as an ATO Reporting Category in this version of MYOB. I undestand as well that this version of MYOB is only compliant for STP reporting, which is why I tried the adjustment advised in my first post - cancelling the salary sacrifice deduction and reducing the wages by the amount of the deduction.

 

As I cannot fix the ATO Reporting Category, do you or anyone else have any other suggestions for this?

 

Thanks

Richard

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Re: STP - Final Submission - Salary Sacrifice Adjustment

Hi Richard

 

Would you be able to send me a screenshot of the payroll category that you use?

 

In deductions there isn't a category for gross wages either 

 

A screenshot may help me see whats happening, if you don't mind

 

Lisa

Richard4
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Re: STP - Final Submission - Salary Sacrifice Adjustment

Hi Lisa

 

see attached screenshot of the Deduction payroll category window.

 

Thanks

Richard

 

Screen Shot 2022-07-12 at 10.29.13 am.png
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Re: STP - Final Submission - Salary Sacrifice Adjustment

Thanks Richard

 

A question, did the employee repay the cost of the device through the salary sacrifice? as per the help notes?

 

If they are repaying the amount I can't see it being a salary sacrifice but rather a genuine deduction 

 

If this is the case and can you check whether the salary sac deduction was exempt from PAYG tax?

 

I would suggest that it is not reportable as basically the company paid for the device and the employee paid them back for it in instalments leading to no benefit to the employee

 

Does that sound about right?

 

If so just check that the GROSS amount is correct and no sal sac is showing and submit to ATO

 

 

Lisa

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Re: STP - Final Submission - Salary Sacrifice Adjustment

Hi Lisa

 

The company purchased the device and provided it to the employee. The GST-exclusive value of the device was deducted from his gross pay and the deduction was exempt from PAYG. So the PAYG that period is calculated on the salary less the deduction for the e-device. So I'm comfortable that it is a salary sacrifice.

 

I've since been in touch with the ATO. As it was a 'misclassification with no additional payment' I was advised to lodge an update event for the employee, which I have done. But with no success in getting final STP report to report his correct salary for the year. My next step is either to lodge an emdupe for this employee (the ATO said I could do this) or manually adjust the employee's pay history in his card (saw this in another discussion).

 

Richard

 

 

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Re: STP - Final Submission - Salary Sacrifice Adjustment

Hi Richard,

 

As it was a 'misclassification' you would need to fix the payroll category so that is properly classified and then lodge an update event

 

Eg

In a $0 payroll dated as at 30/6/22

wages    $0

Deduction ( the incorrect category)     -$XXXX ( two negative make a positive)

Deduction ( the corect category)         $XXXX

 

Make sure that there are no leave accruals also

 

Hope that helps

 

Lisa

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Re: STP - Final Submission - Salary Sacrifice Adjustment

Hi Lisa

 

that is exactly what I have already done.

 

Richard

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Re: STP - Final Submission - Salary Sacrifice Adjustment

Ok. Problem solved. I manually adjusted the employee's pay history in their employee card. This enabled me to lodge an accurate final submission for STP.

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