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

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blairmuller
blairmuller Member Posts: 55
edited June 2023 in Accounts Hosted

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.

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Best Answer

  • Acctd4
    Acctd4 Accredited Partner Posts: 3,482 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert
    edited June 2023 Answer ✓
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    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 ☺️)

    Shaz Hughes Dip(Fin) ACQ NSW, MICB

    *** Reckon Accredited Partner (AP) Bookkeeper - specialising EXCLUSIVELY in Reckon Accounts / Hosted ! ***

    * Regd BAS Agent (No: 92314 015)* ICB-Certified Bookkeeper* Snr Seasonal Tax Consultant since 2003 *

    Accounted 4 Bookkeeping Services

    Ballajura, WA

    shaz@accounted4.com.au

    https://accounted4.com.au

    (NB: Please give my post a Like or mark as Accepted Answer if I have been able to resolve your query as this helps others when seeking solutions!)

Answers

  • Acctd4
    Acctd4 Accredited Partner Posts: 3,482 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert
    edited June 2023
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    @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 😊

    Shaz Hughes Dip(Fin) ACQ NSW, MICB

    *** Reckon Accredited Partner (AP) Bookkeeper - specialising EXCLUSIVELY in Reckon Accounts / Hosted ! ***

    * Regd BAS Agent (No: 92314 015)* ICB-Certified Bookkeeper* Snr Seasonal Tax Consultant since 2003 *

    Accounted 4 Bookkeeping Services

    Ballajura, WA

    shaz@accounted4.com.au

    https://accounted4.com.au

    (NB: Please give my post a Like or mark as Accepted Answer if I have been able to resolve your query as this helps others when seeking solutions!)
  • blairmuller
    blairmuller Member Posts: 55
    edited June 2023
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    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.