STP Phase 2 - Medicare Surcharge

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Natalie_10059754
Natalie_10059754 Member Posts: 8
edited June 2023 in Accounts Hosted

The STP Phase 2 upgrade requires that the Medicare Levy Surcharge (MLS) be entered for each employee manually. Was the MLS included automatically in the PAYGW calculations in Reckon prior to the STP 2 upgrade? If so, why do we now have to enter it manually?

I'm assuming the only way to enter this is to look up the rates on the ATO website and select the rate for the Single threshold (because of course, we won't know the Family threshold). Is that what Reckon recommends?

Answers

  • Acctd4
    Acctd4 Accredited Partner Posts: 3,460 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert
    edited June 2023
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    Hi Natalie

    The MLS is additional tax imposed on employees without hospital cover, who's taxable income exceeds the applicable threshold(s)

    You shouldn't need to complete this label UNLESS the employee has specifically indicated this in their TFN Dec (& most have no idea about it - I am yet to see this option selected!)

    Previously, only ML Exemptions were indicated, by use of a specific, relevant Tax Code (which I also never had any employee select on their TFN Dec!):


    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!)
  • Natalie_10059754
    Natalie_10059754 Member Posts: 8
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    That's a relief. Would have been a pain otherwise. Thank you!

  • Natalie_10059754
    Natalie_10059754 Member Posts: 8
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    @Acctd4 , just to double check, I'm assuming the same applies to the 'Number of Dependents' field (i.e. if the employee has not advised, we do not have to enter/report it in STP2)

  • Acctd4
    Acctd4 Accredited Partner Posts: 3,460 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert
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    😊 That's correct - You can only record what an employee advises of. If they don't indicate it, how would an employer even know this information about every single staff member ?

    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!)
  • Natalie_10059754
    Natalie_10059754 Member Posts: 8
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    👍....again, relieved! I was asking because I was concerned that we would have to ask each employee for additional information if the MLS and dependents was additional information that had to be in Reckon for STP 2. Thanks again.

  • Acctd4
    Acctd4 Accredited Partner Posts: 3,460 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert
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    No, the fields just have to be available to us in case it is indicated by the employee (by some miracle lol)

    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!)