Employees ETP and tax withheld not recorded in STP figures
One of our employees received an ETP for unused RDO's that were paid out when he left. These were taxed at a special rate of 32% as required. Based on the MYOB instructions for recording these payments I set up a wages category for Unused RDO's Paid Out and a deduction for ETP tax payable (there is no provision to add other tax categories) and I processed his termination pay.
When I run a payroll activity detail report the total value of RDO's paid out ($1428) is included in his gross wages total but the tax deducted ($457) is shown separately as a "deduction" and it isn't included in the total tax figure. When I compare these figures to the YTD total in STP EOFY Finalisation figures, neither the ETP amount nor the tax deducted are included in gross wages and PAYG withheld.
This doesn't seem right. Shouldn't both of these amounts be included in the info that gets reported to the ATO. Have I done something wrong when processing the wages for this person? Thanks
Hi Llewellyn
The ATO reporting categories need to be assigned according to the ATO guidelines, so the tax on that ETP payment does need to be reported as a deduction with the reporting category ETP - Tax Withheld.
With regard to your BAS, you need to select the ETP - Tax Withheld category in the set up for the W2 field. This will pull that amount into the BAS figures.
Please let me know if you need further help.
