AU Payroll | STP phase 2 - Split allowances from the hourly rate
STP2 - Splitting allowances for all purpose from the hourly rate
We have employees with all purpose allowances - ie it forms part of the base hourly rate and extrapolates in to overtime rates and annual leave loading. I now have to take it out of the rate and pay as separate line items including overtime and annual leave multipliers.
Is Xero in their pay templates going to make changes to say have a tick box to indicate an add on allowance to the rate so regardless of the pay lines (that are set up as such) they multiply they allowances out at the same time? ie where you code up a time-sheet with say ordinary rates and overtime; when I pay the employee has a line for ordinary, a line for allowance, a line for overtime x 1.5, and a line for allowance x 1.5
Thanks
Eddie Wellington
shared this idea
Hey community 👋 thanks for the interest in this idea!
Just to clarify, when creating a new allowance pay item, you'll have the options to 'Contribute towards annual leave rate' and 'contributes towards overtime rate'.
This setting will include allowance type pay items in the calculation of annual leave and overtime rates.
I can see the main request here was a 'box to indicate an add on allowance'.
Can you confirm if this tick box in payroll settings solves that request?
-Ethan M
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James Hutchins
commented
Some allowances are directly relates to OTE but under certain circumstances the allowances are not applicable.
A option to either track the allowance by OTE or not would be useful.Some allowances are also payable on overtime.
An option to link allowances to overtime would save manual interaction.Some allowances do not require payment on leave. Specifically those employees working under an EBA do not receive travel or site allowances on any leave unless it is an RDO.
An option to deduct allowances on leave days would save manual interaction. -
Eddie Wellington
commented
Basically the pay rate, plus any allowances (we have tool and industry) form the ordinary earning pay rate. But in saying this, we still need to show them earning the allowances for all types (ie Hourly, Annual Leave, personal leave, etc...). Plus it needs to multiply out on the overtime and crib allowances but still show they are earning these allowances as it forms the base ordinary rate inclusive.
See attached example of a current pay that I manually generate.
