AU Payroll - Allowances not reportable as W1 to be included in STP filings
STP2 Allowances. Not reportable at W1 should push that information through with STP, but it doesn't. Using reimbursements as a work around is not good enough - better syncing is needed.
Julie Pike
shared this idea
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Susan Zlatkovic
commented
Agreed. It makes no sense whatsoever to have a box that you can tick to say non-reportable W1 (in the earnings category of the Payroll Settings) if it then still gets reported (incorrectly) to the ATO. Please Xero fix this ASAP!!
LOADS of charitable organisations including churches have non-reportable earnings as a portion of their wage (this is not a reimbursement - which is currently the only way these earnings can be recorded). Putting these wages (earnings) in as a reimbursement throws out Superannuation and Leave Entitlement for these employees. This is crazy!!! -
Daniel Field
commented
Agreed. I don't know if I'm missing something, but we've got a bunch of travel allowances that satisfy the ATO rules to be tax exempt. According to ATO guidance at https://www.ato.gov.au/businesses-and-organisations/hiring-and-paying-your-workers/single-touch-payroll/in-detail/single-touch-payroll-phase-2-employer-reporting-guidelines/reporting-the-amounts-you-have-paid/allowances these should not be shown in STP Finalisation. So I'm struggling with a way to try to delete them, since Xero automatically included them.
If it's exempt from PAYG and not reportable as W1, then why is Xero pushing it into the reportable Allowances part of STP finalisation?