Pre-tax Deduction STP Reporting

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Experienced User Tao2015
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Pre-tax Deduction STP Reporting

Hi, 

 

I have a question in regards to assign of ATO payroll category to pre-tax deduction. Before STP, we set up the deduction in payroll category and tick the box "PAYG withholding" in deduction exemptions. 

 

As we start to use STP reporting, do we only need to assign this category to "Not Reportable" and leave other things unchanged? By taking this step, will this employee see reduced gross payment amount in his MyGov account?

 

Hope if anyone can address my puzzle. Thank You. 

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Former Staff Andrew_Y
805 Posts
Former Staff
Former Staff

805Posts

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Re: Pre-tax Deduction STP Reporting

Hello @Tao2015 

 

Thanks for your post.  I hope that you will find the MYOB Forums to be a great place of information and knowledge.

 

I have found these Help articles that you may find useful.

 

Assign ATO reporting categories for Single Touch Payroll > Deductions

Deductions (AccountRight)

Deductions (Essentials)

 

Please note step 7 in the expanded section of Deductions if using AccountRight:

"If it's a pre-tax deduction (which means it'll be deducted from the employee's gross pay), click Exempt and select the PAYG Withholding category. If you're not sure if the deduction should be pre- or post-tax, check with your accounting advisor or the ATO."

 

Hope that helps.

Cheers,
Andrew

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