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This would also help employers operating under the Business Equipment Award (MA000021).

We have six technician classifications and a number of award conditions that are calculated as an employee's ordinary hourly rate plus a fixed hourly allowance, rather than a simple multiplier.

For example, ordinary hours worked:

Outside the spread of hours attract an additional $7.27 per hour.
On Saturday attract an additional $17.43 per hour.
On Sunday attract an additional $24.43 per hour.

Currently, because Xero cannot dynamically link these allowance-based components to an employee's base earnings rate, we have to maintain manually calculated rates for every employee classification and work condition combination, or manually configure each employee's pay template.

Ideally, Xero would support a model where:

The employee's ordinary earnings rate is maintained once;
An allowance can be linked to that earnings rate;
Timesheet hours automatically generate both the earnings and allowance components.

This would significantly reduce payroll administration, improve award compliance, and eliminate the need to manually maintain dozens of calculated earnings rates across multiple employee classifications whenever award rates change.

This issue also affects employers operating under the Business Equipment Award (MA000021).

Under clauses 21.1, 21.2 and 21.3, ordinary hours worked outside the spread of hours, on Saturdays and on Sundays are paid as the employee's ordinary hourly rate plus a fixed hourly allowance, rather than a simple multiplier. Schedule B.4.1 shows these rates for casual employees as 125% of the ordinary hourly rate plus the applicable allowance.

Because Xero cannot currently calculate these rates dynamically, we are forced to either:

Maintain separate fixed earnings rates for every employee classification and work condition combination; or
Manually maintain employee-specific earnings rates within each employee's pay template.

For example, with six technician classifications and separate rates for evening work, Saturday work and Sunday work, every award increase requires multiple rates to be manually reviewed and updated.

Ideally, Xero would allow timesheets to record the hours worked and automatically apply:

The employee's nominated ordinary earnings rate; plus
The applicable hourly allowance based on the work category.

This would allow payroll to be calculated from:

Ordinary Hours (Including casual loading where applicable) + Stated
Award Allowance

rather than requiring businesses to maintain dozens of manually calculated earnings rates.

This is absolutely critical. I'm currently fixing the templates for some new employees for a client, and I've had to add a separate Industry Allowance (being an All-Purpose Allowance under the relevant Award) for casuals just to ensure that the casual loading on the Allowance is paid.

YES!!! This is so critical.
The requirement for All Purpose Allowances to be separated on the payslip yet they attract casual loading is legislated and at this stage Xero doesn't have the capability to do it - its wild. (Nor does MYOB).
Xero please implement this asap.

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.

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.

We pay our employees under the Electrical award which includes several compulsory 'All Purpose' allowances that are now reported separately as per STP2. When our staff are paid a shift loading, these allowances need to be included in the loading. I have to manually add the allowances into each all purpose loading (which is time consuming)
Can you please have an option to fix this in the pay items? There are certain allowances that have to be included in overtime, annual leave (which you have an option to include) but you dont have one for shift loading