This section of End of Year preparation is to get you thinking about Allowances.
In Wagemaster, Allowances refer to functionality handling both additions and deductions to an employee’s pay. The latter are sometimes referred to as deduction allowances.
Allowances that have been selected to be separated in ATO payment summaries and so the EMPDUPE file, are not added into the Gross total on the ATO Payment Summary Report. Allowances appear separately on the ATO Payment summary for claiming individually by employees when lodging their tax return. It is therefore very important to only show those qualifying allowances separately on the ATO Payment summary and not all allowances paid to employees.
Any other Allowances that were set up and ticked as a Taxable Allowance, will automatically have the value paid or deducted incorporated into the Taxable Gross figure of Employees who have been paid this Allowance throughout the Financial Year (unless you select them to list separately on the ATO Payment Summary).
Please consult your Accountant for advice on which Allowances may need to be separated for ATO reporting in the Allowances area.
NOTE: This financial year end you will have to be aware of how your Wagemaster Allowance configuration must meet the needs of traditional ATO Payment Summaries and the EMPDUPE file but also changes associated with STP Reporting in the new financial year.
Settings for ATO Payment Summaries and EMPDUPE file
Setup > Allowances > (Edit an Allowance) > ATO Payment Summary
These setting will still be in place from last year so your focus will be on any Allowances created since last year, or perhaps any missed for attention at that time.
Settings for STP (Single Touch Payroll) Reporting in the new financial year
For STP Reporting, the ATO requires Allowances which are reported separately to the employee's individual non-business Gross amount, to be categorised according to a pre-defined list of ATO Types.
You will find that changes to Wagemaster associated with STP include new fields at the base of the Allowances window.
They are the Report in STP tick box and the associated ATO Type field.
The same functionality can be applied to deduction allowances for Workplace Giving.
The example shown above therefore complies both with the old Payment Summary standard and the new STP Reporting standard.
Later in this document, we will be looking at the STP Activation Wizard and one of its functions is to ensure that these new fields are correctly configured ready for STP Reporting. The value of the Wizard is that you can administer the settings across all your Allowances and Workplace Giving deductions at the same time. So, you could choose to ignore this STP configuration step until activating your STP Reporting.