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leisadds's avatar
leisadds
Experienced User
3 years ago
Solved

STP 2 All purpose allowances

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.

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  • WayneC's avatar
    WayneC
    Experienced Partner
    3 years ago

    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-and-Overtime/td-p/694024

     

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

    • leisadds's avatar
      leisadds
      Experienced User
      3 years ago

      Thanks Wayne

       

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

      • WayneC's avatar
        WayneC
        Experienced Partner
        3 years ago

        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's avatar
    leisadds
    Experienced User
    3 years ago

    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. 

    • Tracey_H's avatar
      Tracey_H
      Former Staff
      3 years ago

      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.

      • Eliane's avatar
        Eliane
        Trusted Cover User
        2 years ago

        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

  • Jen_M's avatar
    Jen_M
    Experienced Cover User
    2 years ago

    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's avatar
      Steven_M
      Former Staff
      2 years ago

      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.

      • WayneC's avatar
        WayneC
        Experienced Partner
        2 years ago

        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.