STP 2 All purpose allowances

[leisadds]

Hi Tracey

It cant be done in myob as yet. I spoken with a lady from Myob as i put in a complaint about this not happening. She has made a note and was taking it back to myob to see what could be done. She mentioned more people who require this need to make a comment on the forum as the more people who need it then they will look at it. She was going to keep me updated. I asked if i could roll to stp 2 leaving the way im paying it at the moment and she said they had a exemption until December so should come under that.

[Kate69]

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

[Jen_M]

Hi @Kate69 

I'm thinking you would need to set up new Overtime categories for each employee you wanted to do this for, but I'm certainly no expert!  

Hoping MYOB respond with something useful soon as we want to change to STP2 from 1st July...

Regards,

Jenny

[Kate69]

I agree, I thought (I have a small staff) that this currently appears to be the only way to make this work for casuals on an hourly rate.

[Jen_M]

Hi @Kate69 

We would also need to do this for any full/part time employees on hourly rate and also for their entitlement categories as Anne @AO777 set out in her comment earlier.  Not a workable solution for us unfortunately - we don't want seperate categories for every employee...

Hope you sort out something that works for you.

Regards,

Jenny

[Tracey_H]

Hi Everyone

My apologies for the delay in getting back to you. I'm chasing this up with our product specialists and development teams. I'll update this post when I have more information.

[leisadds]

Hi Tracey

Are we best to wait to change to STP2 to see if Myob are going to be able to do/ allocate all purpose allowances. Or are we able to roll forward with it and still be covered until the end of the year under the extention from the ATO.

[leisadds]

Hi 

I have posted regarding STP 2 and all purpose allowances. Tracey H has commented that they are looking into it. Can i roll over to STP 2 and still be covered under the exemption from the ATO or should i wait. Would rather roll on a new pay year.

Thanks

[Eliane]

@Tracey_H  in the mean time Tracey, what do you suggest your clients do to implement this allowance in Payroll, as it's a requirement NOW.

Please advise, as we are all in breach by not following this requirement by the ATO.

Thanks,

Eliane

[Eliane]

@leisadds Hi Leisa, isn't it ridiculous that MYOB says that the more people complain about it they will do something about it? It's an ATO requirement and MYOB is a software that must be compliant! 

@Tracey_H please update us.