Ability to Flag Non-taxable Allowances for Inclusion in STP Reporting

Description

An option has been added to the Rates and Rules > Maintenance > Pay Code > Pay Code Maintenance > Pay Code Entry screen for non-taxable allowance pay codes to allow such allowance pay codes to be flagged for inclusion in Single Touch Payroll (STP) reporting.

When the pre-existing Tax Type field on the Pay Code Entry screen is set to Non Taxable, a new field grouping labelled STP Reporting is now displayed, as highlighted in the example below.

If the Itemise in STP Reports field within the STP Reporting is ticked, the year-to-date (YTD) total of payments that a payee is paid against the allowance pay code will be reported to the ATO via STP reporting.

Benefits

This enhancement allows payment of non-taxable allowances to be reported to the ATO via STP reporting. This allows your business to comply with statutory requirements for reporting of allowances such as award transport payments that are deductible transport expenses, which are not taxable but are still required to be reported to the ATO.

Configuration

By default, the Itemise in STP reports field is unticked for all existing non-taxable allowances that are already created in your system prior to upgrading to v12.18 and any new non-taxable allowances that are created after upgrading. If a non-taxable allowance is required to be reported in STP, the Itemise in STP Reports field must be manually toggled on for the relevant allowance.

If the Itemise in STP Reports field is toggled on for an existing non-taxable allowance, any prior payments made against that allowance pay code at any prior time during the financial year will be included in the YTD amount that is reported in any subsequent STP submissions.