STP2 and Annualised Salaries and Allowances in Award included in those salaries

blairmuller

Hi everyone,

I’ve watched the training videos from Clayton, and I’ve asked been speaking to some book keepers and accoutants. Most of my staff are on an Annualised Salary Hybrid model paid well above the award wages.  Meaning, I pay my staff for any overtime but included in their Annualised Salary are things mandatory in their award like Leave Loading and the Laundy Allowance

I’ve had mixed responses around reporting on those mandatory items (Leave Loading and Lundry Allowance, the bookkeepers and some accountants I’ve spoken to said the message coming to them isn’t really clear either, they are telling me I don’t need to break up the Annualised Salary. Is that correct? In Clayton’s video, it says I need to break them out but perhaps that didn’t consider annualised salaries.

Also, outside of reckon, we have a timesheet system. The team does overtime and take TIL. It’s not entered Reckon unless they want to be paid out. From the videos. In Clayton’s video, it says I need to show all TIL taken and given? Surly just showing the payout figure is enough?

Thanks everyone, just getting ready for next month so hoping I can clear these few items up.

Acctd4

No, you are not required to disaggregate the gross salary if the amounts are not stated there for breakdown.

(NOTE: This advice comes from the director of ICB who is on the board with the ATO for STP ☺️)

Acctd4

@blairmuller It all comes down to how their contract is worded - If the allowance amounts are individually specified, they must be shown as such for STP2, but if the contract doesn't break these amounts down then the disaggregation is NOT required.

You're correct for TiL .... Remember, STP is only reporting amounts PAID (not accrued) so TiL is still only going to reflect in STP2 when it's actually taken 😊

blairmuller

Thanks Shaz,

So if they had the following in their employee agreement. Do we need to report differently?

Uniform laundering:

An allowance for the laundering of your company assigned uniform is accounted for as part of your total salary package.

Leave Loading:

Your Leave Loading entitlement is accounted for as part of your total salary package.

Leave Loading

 17.5% leave loading is included as part of your annual salary to compensate for Recreational Leave Loading. 

Robyn Kelly (Partner)

This should help Blair:

https://www.ato.gov.au/Business/Single-Touch-Payroll/In-detail/Single-Touch-Payroll-Phase-2-employer-reporting-guidelines/?page=4#Disaggregation_of_gross