STP Phase 2 Overtime Allowance

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Sue Kemp
Sue Kemp Member Posts: 18

Hi I apologies in advance for this question. I have just updated to STP Phase 2 and created new items for Allowances to be included in pays. My question relates to overtime and holiday pay including these allowances. Do I need to manually adjust the allowance rate to include OT rate and how do include the allowances to calculate the 17.5% loading. Seriously need a drink after my first pay run!!!

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  • Acctd4
    Acctd4 Accredited Partner Posts: 3,482 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert
    edited July 2023 Answer ✓
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    Hi Sue

    This is currently something that is under strong debate - The ATO & FW website info contains some contradictions in their advice on how these must be treated, stating in most cases, they MUST be disaggregated.

    HOWEVER ... our industry expert Matthew Addison from ICB - who is on the board with the ATO for STP2 - has advised that it is only required IF the software can accommodate it & is NOT required where an all-inclusive amount is stated in the Award or Contract.

    Matthew has asked the ATO for this information to be more transparent & publicly available so we are currently awaiting updates on this.

    So ... I am not splitting them at this stage as in the case of hourly ones, it throws out the hours worked total (eg "the software is unable to accommodate it")

    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

  • Sue Kemp
    Sue Kemp Member Posts: 18
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    Thank you for your reply. I am not an accountant and we run a small business with 2 employees (thank god). I spent hours trying to work this out, but I will include the allowances in the OT rate and the Holiday hours for now until we have further notifications. Have a great day - Cheers Sue