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  1. AU Payroll | STP phase 2 - Split allowances from the hourly rate

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    2 comments  ·  For small businesses » Payroll  ·  Admin →
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    submitted  ·  AdminEthan M (Admin, Xero) responded

    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.

    James Hutchins supported this idea  ·