Settings and activity
2 results found
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78 votes
Hi everyone, thanks for your continued feedback. To be upfront, we do not have any planned work to change how non-reportable allowances are processed at this stage. Currently, you need to use a reimbursement pay item to process these allowances. Our product team has confirmed that this remains a compliant solution with the ATO.
However, we hear you. We know that relying on reimbursements involves workflow challenges. While it's not on our immediate roadmap, we will continue to monitor your feedback and will update this thread if anything changes.
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David Whitehouse
commented
If an Allowance Type MUST be reported on STP it doesn't make sense that the item in the payroll item setup allows you to untick the "Reportable as W1 on Activity Statement" .
This creates contradictory reporting between the BAS report and the STP submission.
The attached reports (BAS and STP) show a $2,806.00 discrepancy because an STP mandatory TYPE of allowance had "Reportable as W1 on Activity Statement" unticked
David Whitehouse
supported this idea
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136 votes
Heya team, thanks for all your input here. We hear you, and understand that being able to assign multiple tracking categories to pay items would improve your reporting capabilities, and simplify tracking costs for various projects, locations, or departments.
For now, we’d suggest using manual journals to split and reallocate payroll costs after a pay run. Alternatively as some have shared, you could create specific pay items for each tracking category combination, although we recognise this may not be suitable for all.
While this isn’t in our plans at this stage we understand the rationale here and will consider how tracking works within payroll closely as we continue to develop our roadmap.
If there are any changes or news for tracking in payroll we’ll be sure to update you of this here.
David Whitehouse
supported this idea
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Come on, guys. This has been an issue for over three years.
Xero already has a Travel Allowance category that can be marked as exempt for W1, which means the BAS report calculates correctly. However, the pre-filled STP report still includes the travel allowance amount as part of wages.
How hard can it be to update the STP reporting so that travel allowances marked as exempt are also excluded from the wages reported through STP?
The current workaround is also creating unnecessary risk. Instead of having a Travel Allowance payroll category with a fixed rate and a quantity field that automatically calculates the correct amount, our payroll staff are having to manually calculate and enter the "reimbursement" amount.
This is inefficient and, more importantly, leaves us open to payroll errors.
Surely the W1 exemption and STP reporting should be consistent so that once the Travel Allowance is correctly classified, Xero automatically handles the reporting correctly across both BAS and STP.
This has been an issue for more than three years. It really should be resolved by now.