STP 2 Allowances descriptions

I would like to question the Tax tracking type for the following

Allowance - Other (non Deductible) is described as " Deductible expense allowances that don't belong in one of the other codes.

And

Allowances - Other (General) is described as "These will be allowances related to an expense that is not work-related, not for business purposes, or is for private purposes"

I feel that they are incorrectly described and are in actual fact the opposite.

I also cannot seem to be able to see the allowances when I process STP with the description of the allowance, only the totals of the Tax tracking type. Is this correct as we have employees that have several allowances but some are just totaled up into Tax tracking not Travel allowance, phone allowance, boots allowance etc ?

Accepted answers

All comments

Rav

Hi Tiffany

Can you let me know where you're seeing those descriptions? If its one of our help guides, just shoot through the link and I'll take a look at that.

When I look at our STP Phase 2 tax tracking help guide (HERE), the allowance description shows as the below so would be keen to see where you've found the one described in your post -

Tiffany

This is what appears on my program and I was just using Jobkeeper start as a test

Acctd4

Hi Tiffany

STP2 doesn't have columns to display every single Allowance as there are so many possibilities! (These are as per the ATO descriptions) However, you see the different names/detail within your own program including on generated reports & payslips 😊

Tiffany

Thanks Shaz but if you see they are described incorrectly (in regards to the tax tracking type as per the above screen shots)

Acctd4

Ah yes, I see what you're referring to now ... looks like a typo in Reckon's description then (Should read "NON-deductible ...") 😬

Tiffany

Shaz does that mean at the end of the year all employees will have a breakdown of the different allowance names for tax purposes not just the tax tracking type. As per the old Payment Summaries or EOFY finalise year ?

Thank you

Acctd4

Good question! I believe it will show the different Allowance breakdowns within their myGov Income Statement (but don't quote me on that!) & obviously these show on their Payslip too.

💡 If you or any of your friends/relatives receive any Allowances, get them to login to their myGov & check.

(The STP - original & Phase 2 - format is determined by the ATO, not Reckon so if not, they're the ones to blame 🤣)

Tiffany

Thanks Shaz I will ask one of the employees to check their mygov but it seems unusual that the allowance names were in the detail on each week I submitted STP1 but no longer on STP2, it just names them as Allowances with the amount and tax code

STP1

STP2

Tiffany

https://community.reckon.com/discussion/comment/20637797#Comment_20637797

Rav do you see that there is an incorrect description as per my 2 screen shots. Will it get corrected as it is rather confusing.

Acctd4

Yes, those new Type codes correspond to the applicable individual Allowances but it certainly is better displayed under the original STP 😒 Hopefully, that display is just how the ATO receives it but the actual names will show in the employee's personal myGov 🤞 (Having said that, it may be presumed that level of detail isn't really important for STP reporting, as the employee can see the Allowance names each pay on their Payslips 🙄)

Rav

https://community.reckon.com/discussion/comment/20637813#Comment_20637813

Hey Tiffany

Thanks so much for this, yes I've got it and can replicate what you're seeing. I've passed this feedback over to our product dev team.

For now, I'd recommend the info in this tax tracking help guide for an accurate description of the allowance types.

https://help.reckon.com/article/12kbjcx6g4-stp-phase-2-tax-tracking-type-changes#allowances

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