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MYOB STP salary sacrifice not for profit

Experienced Partner Alex_Scobie
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MYOB STP salary sacrifice not for profit

Client is a Public benevolent institution (Not for profit) that has salary sacrifice (not superannuation) deduction every pay for employees. This is currently set up as a pretax deduction in MYOB Accountright. The salary sacrifice reduces W1 on BAS and is deducted from gross wages on Employees Individual PAYG summary. This currently works ... however the MYOB STP does not allow the deduction to be classified as gross wages (i.e. reduction of gross wages).

MYOB STP support:

- Does not appear to be aware of the salary sacrifice provisions for Public benevolent institutions.

- Initially advised me to classify this deduction as super.

- Advised to to enter FBT amount at end of year. The FBT reporting is a different issue.

- Advised me the correct reporting is to classify non super salary sacrifice deductions as not reportable. This indicates the salary sacrifice will not reduce gross wages reported via STP. This appears to contradict the BAS setup in MYOB where the salary sacrifice deductions reduce W1.

 

Can MYOB STP please confirm this advice in the public forum. Alternatively suggest how I can account for non superannuation salary sacrifice payroll deductions in MYOB Accountright.

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Valued Cover User DannyTangney
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Re: MYOB STP salary sacrifice not for profit

Hi Alex,

 

We are a pbi and have our Wage Salary Sacrifice set up as a Deduction that is Not Reportable to the ATO, and it all seems to work fine :-)

 

Regards,

Danny

Experienced Partner Alex_Scobie
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Re: MYOB STP salary sacrifice not for profit

Hi Danny

You would be reporting the gross wages in full? You would NOT be deducting the salary sacrifice from the gross wages (gross wages reported, salary sacrifice deduction not reported)? With STP there will be no Payment Summaries so you will report your employees gross wages no salary sacrifice as taxable wages?

Valued Cover User DannyTangney
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Re: MYOB STP salary sacrifice not for profit

Hi Alex,

 

We can't see what exactly is reported to the ATO via STP, so I can't really answer your question - sorry about that.

 

Maybe MYOB will get around to commenting on your post...

 

Regards,
Danny

Experienced Partner Alex_Scobie
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Re: MYOB STP salary sacrifice not for profit

Could MYOB support please confirm on the forum that non superannuation salary sacrifice deductions should be reported as "Not Reportable" for STP reporting.

MYOB Moderator Neil_M
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Re: MYOB STP salary sacrifice not for profit

HI @Alex_Scobie 

 

If you were unsure as to which ATO reporting category a particular payroll category should be reported as, I recommend speaking with the ATO. They will be able to advise you of the correct reporting category for that particular payroll category. Alternatively you may want to speak with your accounting advisor over what they think it should be reported as

Regards,
Neil

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Experienced Partner Alex_Scobie
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Re: MYOB STP salary sacrifice not for profit

Hi Neil_M

 

Let me state the issue another way.

1- I am NOT "unsure as to which ATO reporting category a particular payroll category should be reported as". I AM SURE I KNOW WHERE TO REPORT THE DEDUCTION for BAS AND PAYMENT SUMMARY AND STP (yes I am yelling).

2- The issue appears that MYOB support and MYOB STP Support do not know how (or unable to explain) how the the software works in this instance.

3- Your reply does not address the issue and appears to me to be an attempt to look like you are providing an answer when you are merely diverting the discussion from how does the software work to my lack of knowledge. I can set this up to work in Xero but I cannot see how it works in MYOB. I cannot get anyone in MYOB STP or support to explain how this works in MYOB.

I officially give up!

Experienced Partner Super_Hag
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Re: MYOB STP salary sacrifice not for profit

I agree that the deductions are part of the Gross wages as they have to be "deducted" from this category.  I have looked on the ATO site & have not find any help.  It appears to be an area overlooked by MYOB's choices with the STP. 

Ultimate User gavin12345
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Re: MYOB STP salary sacrifice not for profit

Hi @Super_Hag  and @DannyTangney  and @Alex_Scobie 

 

I don't know the answer to your question and I hope MYOB do provide a meaningful response. I simply wanted to say 'take care you are talking about the same version'. Salary Sacrifice (both super and not super) works differently in AR2019 than how it does in v19.

 

Have a look here http://help.myob.com/wiki/display/ar/Assign+ATO+reporting+categories+for+Single+Touch+Payroll+report... - see in particular the note under Superannuation - the implication that is for STP purposes, the netting against gross takes place in the background. This likely applies to both Super and non Super salary sacrifice.

 

The note states:

When reporting payroll amounts using Single Touch Payroll, gross wage amounts are reduced automatically by deduction amounts that are marked as a before-tax deductions. This includes salary sacrifice superannuation deductions.

 

Regards

Gavin

MYOB Moderator CloverQ
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Re: MYOB STP salary sacrifice not for profit

Hi @DannyTangney @Super_Hag @Alex_Scobie @gavin12345 

 

Thank you all for your input here, and sorry about the delayed response.

 

@gavin12345 is spot on with the Help article. In AccountRight Live, when assigning reporting categories for salary sacrifice amounts, you don't need to assign the Gross Wages category, as salary sacrifice is now calculated behind the scenes.

 

Provided that the salary sacrifice (deduction) is marked as a before-tax deduction, assigning it to 'Not Reportable' will reduce the total gross wage correctly. I'd suggest taking a look of the detailed post by @Hayden_B in this thread:

 

STP and salary sacrifice

 

I hope this helps. 

Cheers,
Clover

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