Hi Jenny
I am also having problems sorting this out. The ATO now clearly say we don't need to "disaggregate" the allowance (KN - task allowance) from overtime. But for casuals if you take the hourly allowance out of base hourly and then create the allowance category - overtime is calculated at the incorrect rate (without allowance).
From the ATO below
Example: all-purpose allowances
Deanna employs James. James is employed under the Crocodile Award, and is entitled to be paid:
- a base rate of pay of $840.10 per week
- an industry allowance of $33.28 per week
- a tool allowance of $20.02 per week.
The award expresses that both the industry allowance and the tool allowance are to be paid 'for all purposes', including when calculating overtime.
It is an ordinary work week and James has been at work. On top of his ordinary hours, he worked 2 hours of overtime on one weekday, for which he is entitled to be paid at 150% of his all-purpose rate.
When Deanna reports the wages she paid James for his week of work through STP, she includes:
- gross: $840.10 – this is James' base pay for his ordinary work hours
- allowance type KN tasks: $33.28 – she has disaggregated the industry allowance relating to the time James was at work doing ordinary hours to the relevant allowance category
- allowance type TD tools: $20.02 – she has disaggregated the tool allowance relating to the time James was at work doing ordinary hours to the relevant allowance category
- overtime: $70.53 – she doesn't need to separate the components which are part of the calculated overtime payment.
I am wondering if for casuals you go into the payroll settings and actually set overtime as a "fixed hourly rate" (i.e. the 150% of base hourly, including allowances) then just put the actual hours worked as overtime in each week.
Do you think it would work this way?
Kate