STP 2 All purpose allowances

[leisadds]

Have been trying to get help for the last month regarding STP2 and all purpose allowances and how to set them up. If have rang MYOB and was on hold for 1.5 hours and then have been cut off twice. Spoke to someone who then told me that you cant do this in MYOB. This is a requirement for STP 2 so it looks like we will be changing to another software company. Have asked the same question in the MYOB community with no response. Below is the question asked.

Need to set up an all purpose allowance this should be added to the minimum rate before penalties and overtime are calculated and needs to shown as an allowance through stp 2.

[leisadds]

Hi 

Need to set up an all purpose allowance this should be added to the minimum rate before penalties and overtime are calculated and needs to shown as an allowance through stp 2. 

[WayneC · Accepted solution]

Unfortunately, the "you cant do that in MYOB" answer is correct. 

Overtime and penalties will only calculate on a base hourly rate multiplier. You cant tell it to calculate on base hourly + an allowance. 

I did find a thread where this had been asked before, and presented the same reasoning, and a solution that isnt of any use for STP2. (i.e. the allowance wouldnt be able to be reported seperately)

https://community.myob.com/t5/AccountRight-Staffing-and/Paying-all-purpose-allowance-on-Annual-Leave...

Sorry to be the bearer of bad news, but hopefully it stops you needing to waste any more time chasing an answer.

[leisadds]

Thanks Wayne

Do you know if Myob will work to add this? as it has to be done as a requirement of STP2?

[WayneC]

I cant give any definitive answer on that because I dont work for MYOB. I agree with you that it needs to be addressed, but its a pretty fundamental change to the way calcualtions are done, and so would be reasonably major project. I cant imagine it will happen any time soon, but again, I am not privvy to the MYOB development roadmap. Given the strange way MYOB seems to prioritise things, I wouldnt be holding my breath for it any time soon.

[leisadds]

Thanks Wayne have been a great help. May have to look at different software.

[Tracey_H]

Hi @leisadds and @WayneC 

I just wanted to let you both know that I've raised this with our teams to look into. I'll update this post when I have information on how this can be set up and reported in the software.

[leisadds]

Thanks very much greatly appreciated.

[Jen_M]

Hi @Tracey_H,

Is there any update on this as yet?  We too are in the same situation.

I was originally told by the ATO that all amounts attributable to the allowance were to be shown as the allowance (including overtime, penalties and loadings), but they now state on their website that only the "ordinary hours" amount of the allowance is reported this way and overtime calculations remain as overtime (also some leave calcuations)...

Would it be possible to set up the allowance category to automatically adjust base hourly (as we do for sick leave)?  Could we then leave the employee's hourly rate as including the all purpose allowance amount so overtime calculations etc would be correct?  Hope that makes sense...

Thanks,

Jenny

[AO777]

Hi @Tracey_H 

Are there any updates on this please?

Wanting to implement STP 2 with the new financial year.

Needs to be a checkbox within the allowance payroll category so it can be included when calculating overtime / leave.

Without it, payroll categories would need to be setup for each employee to include:

All Purpose Overtime @ 1.5 (employee x)

All Purpose Overtime @ 2.0 (employee x)

All Purpose Public Holiday worked (employee x)

All Purpose Annual Leave (employee x)

All Purpose Leave Loading (employee x)

and possible many others!

How messy!!

Any better ideas would be welcomed, thanks Anne