STP 2 All purpose allowances

[leisadds]

Eliane

Yes it is digusting when im sure there are thousands of businesses who need to comply under their awards and with the ATO. It should have been implemented when they new STP 2 was coming. Other programs already do this. I have not rolled over yet as i was advised by the ATO even they were disgusted that MYOB can not comply.

[Tracey_H]

Hi Everyone

My apologies for the delay in updating this post. The Help Article, Allowances, has information on all purpose allowances.

[leisadds]

Hi Tracey

This means we are going to have to create 7 different categories for evey staff member as they are entitled to different rates of pay. 

[leisadds]

HI Tracey

How do we also add this to leave loading as it is calculated at rate not hourly?

[Jen_M]

Hi @Tracey_H ,

This doesn't address the question - what do we need to set up in payroll in order to correctly calculate overtime and leave loading when there are all purpose allowances to take into account?

Will MYOB be working to implement something more streamlined than multiple overtime and leave loading categories for each rate of pay (which will all have to be manually adjusted any time there is an increase in the award or an employee is given a payrise)?

Regards,

Jenny

[Eliane]

@Tracey_H @leisadds @Jen_M 

After reading what I already knew on how to set up a normal allowance, it's not until the end of the page that you see something relevant to what we are talking about in this thread All Purpose Allowance (which is more complicated than your ordinary allowance because of overtime and entitlements, which are to be paid including the allowance rate).

This is what it says:

"Historically, an all-purpose allowance may have been added to an employee’s base hourly rate and used for calculating things like allowances, overtime and other types of payments.

But to meet the requirements of the ATO’s STP Phase 2, your employees' base hourly pay must be reported separately from allowances. AccountRight does this using the ATO reporting category you assign to your payroll categories.

Therefore you can’t set up all-purpose allowances in AccountRight. Instead, you’ll need to set up wage categories for each allowance you need to pay and assign the applicable ATO reporting category to those allowances." 

[leisadds]

Yes i did see this so this means i have 7-8 different payroll categories to calculate the allowance on overtime, holiday and leave loading, sick pay, super, public holiday, all overtime etc. And 20 different employees with different rates?

[leisadds]

Agree Jenny. 

[Eliane]

@leisadds @Jen_M 

MYOB has to ensure that All Purpose Allowances rates are included in the calculation of Overtime and Entitlements when making these payments. 

I agree, what @Tracey_H sent us does not address the problem at hand. Please advise us how to proceed. We do not want to be in breach with the ATO requirements because MYOB software is not being compliant.

[Eliane]

@Tracey_H what is happening about this? We are still not doing the right thing by not being able to separate this allowance from the base rate.

Please advise us.

Thanks!