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Re: Accounting for Student Internship Supervision Fees - Superannuation and PAYG Compliance
Hi Sai, Thank you very much for your response and for the suggestion to consult with a professional. I appreciate the guidance. While I understand the importance of individual advice, I am specifically seeking the standard industry-wide practice for this scenario. Given that this is a recurring situation in the childcare sector, I believe there must be a singular, ATO-compliant method for processing these pass-through payments that ensures the business remains cost-neutral. My primary goal is to ensure that the centre is fully compliant with current regulations while accurately managing the 12% Super Guarantee. Could you please clarify the following technical aspects? 1. Standard Workflow: Is it standard practice to treat the University’s payment as a "Total Package" and "gross-down" the payment to the teacher (i.e., University Fee ÷ 1.12) so that the Base Pay plus the 12% Super equals the exact amount received? 2. STP Phase 2: Which reporting category (Allowance, Bonus, etc) should be used in MYOB for such payments to ensure they are correctly identified as Ordinary Time Earnings (OTE)? I am looking to implement a workflow that is objectively compliant with ATO requirements, rather than one dependent on individual interpretation. Any insights from those who have implemented this successfully would be greatly appreciated. Thanks again for your help!19Views0likes0CommentsAccounting for Student Internship Supervision Fees - Superannuation and PAYG Compliance
Hi Everyone, I operate a childcare centre, and we occasionally receive payments from universities for hosting student interns. We intend to pass the full amount of these payments to the specific teachers who act as supervisors for these students. I have a few questions regarding the correct way to process these payments in MYOB and remain compliant with ATO regulations: 1. Superannuation Guarantee (SG): If we treat this payment as part of the teacher’s salary/wages, we are concerned about the additional cost of Superannuation. If we pay the teacher the exact amount received from the university, the added 12% Super expense would result in a financial loss for the centre. o Is this payment considered Ordinary Time Earnings (OTE)? o Is there a compliant way to pass this on without the employer incurring extra Super costs (e.g., deducting the Super component from the total amount received before payment)? 2. PAYG Withholding: Does this payment require PAYG withholding? If we pass the full amount to the teacher through payroll, should it be taxed at their marginal rate, or can it be treated as a different type of allowance? 3. MYOB Setup: What is the best way to set up this "pass-through" payment in MYOB AccountRight? Should it be a specific Allowance category, and how should the Tax and Superannuation boxes be ticked to ensure the centre’s books balance to zero for this transaction? I want to make sure the teachers receive their fair share while ensuring the business does not end up out of pocket due to on-costs. Thanks in advance for your help!95Views0likes2CommentsHow to change Base Hourly's default value
Dear Experts, I'm wondering if there's a way to change Base Hourly's default value from 76 hours to 0. (Payroll Details > Standard Pay). I changed it to 0, but whenever I change any field of the card, this one changes back to 76. It's very annoying. Thanks in advance! Lei799Views1like8CommentsRe: Timesheet questions
Hi Doreen_P , Sorry, another question. Because we don't really care how many hours our employees work on individual days, we only care the total hours an employee work fortnightly, can I enter (actually import) timesheets by simply putting total hours on one day (say Monday)? Will MYOB think that's overtime (for example, 67 hours a day) or anything strange? I tested this, and looks it's OK, but I want to confirm from experts before I use. Thanks once again!!785Views1like4CommentsTimesheet questions
Dear Experts, I've just started looking into timesheet and payroll, and I need some time to play with before really use it. So, I have a couple of questions to start with. (1) If I enter some timesheets, whether or not they are used for payroll, do they affect anything else? (2) If I delete a timesheet, will this affect the payroll based on it? Thanks in advance!Solved1KViews1like12Comments