Pay item set up in MYOB Essential

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Lilacow
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Pay item set up in MYOB Essential

Hi,

 

We are a property management business. We pay our property managers commission monthly with Admin Fee deducted plus GST based on their taxable earnings. I have done this for a while in MYOB Essential. GST was set up as below:

GST Setup.PNG

 

Although it is ticked "exclude from gross earnings for leave calculations" On payslip GST is still included in the Gross in summary section. And the Administration Fees are also included in that amount as an example below: 8001.90+2300+1200.29 = 11502.19

 

example.PNG

Our property managers are so confused by this summary section, which is not shown correctly about their true earnings. Their accountants who use this to do their tax returns also find that it is incorrect compare to their actual tax positions on IRD's website.  From my point of view, their pays are all correct. However, there must be a way to set up correctly for these two items so they are not included in Gross in the summary.

 

Any suggestions?

 

Thanks

Shirley

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MYOB Moderator Steven_M
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Re: Pay item set up in MYOB Essential

Hi @Lilacow 

 

The Exclude from Gross Earnings  for leave calculations option on a pay item will only exclude that pay item from being included in leave calculates. The values included in the pay are still included as gross earnings amounts of the pay and thus are included in the PAYE calculations.

 

For a value not to appear in the Total gross earnings the category would need to be set up as an non-taxable pay item. This would include the value in the Plus non-taxable earnings section of the payslip and thus not show in the Gross earnings. Note: this may affect the PAYE value of the employee's pays.

Kind regards,
Steven

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Lilacow
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Re: Pay item set up in MYOB Essential

Hi Steven,

 

Thanks. But the GST part is set up as Non-taxable as show above. It is not included in the payslip main section. But in the Summary table underneath it is included in the Gross. And this is the part that is concerned. The accountant only needs to look at this figure when they doing their tax returns. But this figure is wrong. 

 

What it does now is it includes both Gross Earnings and Non-Taxable earnings (GST). However, it does not include Pre-tax deductions (Administration Fees), which indeed should be deducted to achieve gross earnings.  

 

What we would like to see is "Gross" in the summary section shows exactly what the Taxable Earning is in the main section. In this example it should be $8001.90 instead of $11502.19. As $11502.19 is much more than what he has actually earned.  And we want this section to be accurate. 

 

 

Thanks

Shirley

 

 

 

MYOB Moderator Steven_M
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Re: Pay item set up in MYOB Essential

Hi @Lilacow 

 

The summary table on an employee's payslip is a summary of values paid to that employee in the current payroll year. The gross value in this will be anything that is paid to the employee including Gross earnings and allowances. There is no way to exclude a value (or series of values) from being included in that table.

Kind regards,
Steven

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