The Allowance screen shows a list of Allowances (Additions) setup in Wagemaster. Here, you can specify the Allowances that should be identified separately to other payments in STP Reporting and assign an ATO Type to them.
Why is this important?
The ATO requires Allowances (Additions) which are reported separately to the employee's INB Gross amount, to be categorised according to a pre-defined list of types. These are the Additions that, prior to STP Reporting would have been itemised separately on employee INB payment summaries, e.g. Meal Allowances, Car Allowances.
Some Deductions also need to be configured for STP Reporting. These are handled via the Deductions page of the wizard.
What you need to do:
- This screen is for setting up STP Phase 2 reporting details for a new allowance. These settings determine how the allowance will be reported to the Australian Taxation Office (ATO) through Single Touch Payroll (STP).
- Reporting Group: Select the main category that best describes the allowance (e.g., Travel, Meals, Tools). This ensures the allowance is classified correctly for tax purposes.
- Reporting Subgroup: Choose a more specific classification within the selected group (e.g., Domestic Travel or Overseas Travel under Travel).
- Other Allowance Description: If the allowance does not fit into the standard categories, provide a clear description here. This helps the ATO understand the nature of the payment.
- Correct classification is important because it affects how the allowance is treated for tax and compliance purposes.
Changes to the Allowances are saved when you click Save & Close or Finish the wizard.
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