STP 2 All purpose allowances

[MOTIVATED]

Hi

What is happening with this? 

I have been chasing a response to this for ages also. Today on another post I get referred to this ATO forum link: https://community.ato.gov.au/s/question/a0J9s000000LkKN/p00178733

Although very informative, it does not solve the issue of being unable to add separated base rate and industry (or all purpose allowances) together in the Accountright program for correct overtime etc calculations.

Then MYOB to suggest referring to Accountant or ATO for the best setup, when it is a MYOB program problem.

The person on that link was advised to go to another software solution by the ATO. 

Please advise if any progress on this !

[ChrissyK1]

Hi

Does anyone know if MYOB is actually going to address this issue with the allowance disaggretion no longer being part of the base rate ???

Once the allowances are removed from the base rates the percentage based calculations for overtime and leave entitlements will be incorrect. 

The extra work involved to correct all of this manuallly is going to be open to all sorts of errors.

The base rate we use from MA000025 has always included the industry allowance, tool allowance and the licence allowance.

While I can now see that these allowances should have always been listed seperately on the payslips as below.

NOTE: Regulations 3.33(3) and 3.46(1)(g) of Fair Work Regulations 2009 set out the requirements for pay records and the content of payslips including the requirement to separately identify any allowance paid.

But we had always advised employees, at the start of their employment and when wages increased in July, of the allowances in their base rate of pay.

So from this perspective MYOB have never had a proper solution to correctly and easliy calculate the overtime and leave entitlements on a base rate that does not include the required allowances.

At the moment I am wondering what else is out there that could solve this issue.

Any help would be great.

Many Thanks Chrissy

[Eliane]

@Tracey_H could you please advise us a resolution. We are still waiting for an update that will fix this issue. 
MYOB as an accounting software must be compatible in every angle. Given that separating this allowance from the base rate is very complexing, your job is to figure out a way that we can do this and follow legislation. 

Please reply to all members in this post, as we are all on the same boat.

Thanks!

Eliane

[Jen_M]

@Tracey_H 

Are there any updates regarding this issue?

There is a further complication regarding all purpose allowances and casual employees.  Casual loading is also added to all purpose allowances, but only the "base" all purpose allowance rate is reported as an allowance.  The 25% loading on the allowance is reported as Gross.  Currently, this would require even more payroll categories to be set up...

Are MYOB working on or even considering providing a solution within the software for all purpose allowances?  I believe some other providers have already done so.

Thanks and regards,

Jenny

[Eliane]

@Tracey_H 

I think this thread is showing as "solved", but this is not solved at all! 

Could you please respond to us.

Thanks!

Eliane

[tns05]

I have just seen this thread and absolutely tearing my hair out about how to move forward correctly with the new ATO requirements for STP2.

Currently all my staff, all on different wage rates have their allowances included in their base rate of pay - has been set like this since we started business 15 years ago.  With the new ATO requirements, we have to pull out the allowances from this base rate and report them separately.  Seems simple but it is far from simple when you have to factor in Overtime, RDO's, Annual Leave, Sick Leave etc.

Our staff are paid a different rate of pay with allowances included, all allowances are a different amount as we have apprentices, all on different levels & trades.  How are we supposed to report each allowance every staff member is paid but ensure they are still being paid the amount they have agreed to in their contracts, not a $ less.

How are we to re-configure our payrolls for the following to comply with ATO STP2:  Moving from a single rate of pay which includes all allowances and OT and all Leave amounts are calculated from, to:

Base hourly rate of pay

Tool allowance

Licence Allowance

Industry Allowance

Travel per day Allowance

How do I set my new payroll up to for staff to be paid overtime at their current rates of pay?

How do I set my new payroll up for staff to be paid their current rates of pay when taking RDO's, annaul leave and leave loading, sick leave?

When I print an entitlements report, how do I have this report to reflect the $ value owed to staff that includes all the now separated categories?

What happens with Superannuation?  How is it calculated to reflect the current rates of pay each staff member is on?

MYOB, please tell us how we re-configure our entire payrolls to reflect the changes required by the ATO, report correctly and not underpay our staff.  It is hard enough to retain or employ new staff at the moment without them having a reason to leave because they are now underpaid due to the Payroll program not being able to do what we require it to do.

When will the program be upgraded so we don't have to manually enter amounts each and every week for every member of our staff - some businesses only have a couple of employees but for the businesses with a large payroll, this is an absolute nightmare.

[Jen_M]

Hello

I refer to this current Community thread Solved: STP 2 All purpose allowances - MYOB Community which is not solved at all...  There have been multiple posts since July that remain unanswered.

Is MYOB planning on implementing changes in the software to provide a solution to dealing with overtime and leave calculations (and also casual loading) relating to All Purpose Allowances?  The only other alternative I can see is a significant number of new payroll categories for each employee.  This would make payroll quite messy and open to many more unintentional errors - not really a suitable option for even small to medium size employers...

Your response to this and also the many queries on the thread mentioned above would be greatly appreciated!

Jenny

[Steven_M]

Hi Everyone

Thank you all for your patience and feedback on this situation

The all purpose allowance is a very specialised part of the Single Touch Payroll v2 process and should be set up with the assistance of your accounting/payroll advisor to ensure that you meet your reporting requirements.

We are aware that the current setup of an all purpose allowance is complex, we are looking into solutions to try and simplify this process for our customers next year. In the meantime, this does mean that several pay items may need to be set up to allow for variable rates and other factors. We do recommend getting guidance for your accounting advisors on this topic and ensuring you meeting your reporting requirements.

[Jen_M]

Hi @Steven_M ,

Thank you for your response.  While not ideal, at least we now know what we need to do so we can move to STP 2 reporting before the deadline.  Hopefully there will be a better solution in the not too distant future.

Regards,

Jenny

[WayneC]

Its disappointing that this has been pushed back on to accountants/payroll advisors to work out. MYOB should at least provide a knowledgebase article on a recommended work around given that it is limitations with their software that is causing the problem. This issue was flagged quite a long time ago, and with the deadline for the MYOB STP2 extension about to expire, its disappointing that MYOB are kicking this can down the road and expecting others to come up with solutions to make their customers compliant. Accountants and payroll advisors are busy enough without having to spend time coming up with solutions on MYOB's behalf.