Has the use of TOIL Payroll items changed with STP2?

Leshelle
Leshelle Member Posts: 103

We have managed TOIL outside of payroll up until now.

I believe we now need to use a Leave item to manage TOIL, and report when overtime TOIL is paid out.

We have installed Reckon 2023 bug fixed version today, and will run the Migration assistant once we have a few new payroll items added.

Can anyone please help with the latest STP 2 compliant set up for TOIL?

Thank you

Answers

  • Acctd4
    Acctd4 Accredited Partner Posts: 3,322 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert

    Hi Leshelle

    The Migration Assistant can automatically suggest mappings so will likely already classify it for you. If not, it is mapped as follows:

    • For TOIL Hours taken (& paid): Leave - Other Paid Leave
    • For TOIL Hrs cashed out (eg paid but NOT taken): Overtime

    The ATO has a Quick Reference Table here: https://www.ato.gov.au/Business/Single-Touch-Payroll/In-detail/Single-Touch-Payroll-Phase-2-employer-reporting-guidelines/?page=12#Payment_types_A___G

    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

    [email protected]

    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!)
  • Leshelle
    Leshelle Member Posts: 103

    Hi there.

    Thanks for that.

    I dont have these Payroll Items yet.

    How many items do I need to set up ?

    I'll need one for Toil hrs worked/banked as well, or do you just use one for everything?

    Thanks for your help, I've only used Excel to manage TOIL, and two columns on a timesheet for plus and minus.

    Leshelle

  • Acctd4
    Acctd4 Accredited Partner Posts: 3,322 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert
    edited June 2023

    There are a few options depending how you want to track it - I have just the one set up as an Hourly Wage-type, configured the same as my normal "Hourly ..." one.

    When employees work additional hours, I include these hours in their normal (paid) hours then use this TiL Payroll Item on the next line, to minus out (& bank/accrue) the excess:

    This is an example of a PT employee who works 50 hrs p/fn:

    (NB: The previous TiL balance was 13.75 Hrs. This correctly accrues when worked/reduces when paid accordingly) 😊

    It initially calculates everything on the full (extra) hours but then the TiL minuses those extra calcs back out again.

    FYI This method tracks accrual, use & running balance perfectly but NOT the "YTD Used" (I just disregard that figure)

    It can throw out the figures on the Super Report by Employee as it tries to still calculate Super on top of the TiL here, instead of reducing by it, so need to confirm the correct Super liability via the Liabilities &/or Super by Fund report 😬

    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

    [email protected]

    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!)
  • Leshelle
    Leshelle Member Posts: 103

    Ok, makes sense.

    Using the same example, 50 hr fortnight, if employee takes 5 hours of TOIL as time off in next pay and works 45 hours, what payroll item will you use for the 5 hours ? The same item? Or a 'Leave 'Til item ?

  • Acctd4
    Acctd4 Accredited Partner Posts: 3,322 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert

    Hi Leshelle

    Same TiL Payroll Item but the hours being taken are entered as a POSITIVE amount instead:

    (Disregard the Available TiL qty shown as I've edited the previous Paycheque! 😬 )

    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

    [email protected]

    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!)
  • Leshelle
    Leshelle Member Posts: 103

    Thanks for taking the time to assist. I really appreciate it.

    So if it's the same item, this 5 hours will be reported as Leave Other in STP2, and when you banked the 5.50 in the first example, that's also reported to ATO as Leave Other negative. Is that right?

    And Flex time in and out is reported as Gross, so that requires more payroll items to be set up, or would you just not bother to show Flex time in Payroll ?

    L.

  • Acctd4
    Acctd4 Accredited Partner Posts: 3,322 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert

    STP reports what’s paid so I’m assuming the banking (negative) won’t be reported (but don’t quote me in that as I’ve not migrated this particular file yet, so yet to be confirmed lol 😆) but when TiL is taken/paid, then it will … yes, under Leave - Other Paid Leave ☺️


    What does “Flex Time” actually represent? Is it not essentially the same thing with a different name ? 🤔

    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

    [email protected]

    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!)
  • Leshelle
    Leshelle Member Posts: 103

    Yes Flex Time or TIL, are essentially the same - additional ordinary hours paid at ordinary time

    And overtime TOIL is banked as Time and a half or double time, (hours worked outside of ordinary hours eg, weekends) and will be reporting as Overtime in STP2 when cashed out.

    Hopefully this becomes clearer when I run the migration assistant.

    My aim is to keep it simple for the employees, not over complicate the payslip, and give the ATO what they need.

    You mentioned at the start of this thread there were some other ways to handle Toil.

    If you have the time tomorrow I'd love to know them. If not, thanks so much for your time.

    L.

  • Acctd4
    Acctd4 Accredited Partner Posts: 3,322 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert

    @Leshelle I’ve not tried the other suggestions but you should find instructions for them in the in-program Help files if you search for “Time in lieu” ☺️

    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

    [email protected]

    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!)
  • GlynisFNQ
    GlynisFNQ Member Posts: 28 ✭✭

    Hi Shaz @Acctd4 👋

    Just following this very helpful thread... I'm setting a TOIL item up today for Overtime earnings. I was wondering, if it is accruing and essentially an IOU, I need to code it to my Payroll Liabilities don't I? Rather than Payroll Expense accounts?

    And, on that note, it's 'normal' to have two separate Payroll Items for TOIL isn't it???

    One for ordinary time earnings with tax tracking as Gross Wages, and another for overtime with tax tracking as Overtime Wages, have I got that correct? Therefore reported differently via STP if set up correctly.

    And neither tax tracking would be classed as "Leave"... ouch, my head hurts...🤔 is that correct???🤩


    Like Leshelle, I want to keep the pay slips as simple as possible... Ideally, it'd be best to only have one TOIL $ pay rate accruing/decreasing... I foresee trouble trying to keep 'track' (literally!) if an employee has both ordinary and overtime, can you?


    Always love hearing from you - thanks Shaz,

    Glynis 😊

  • Acctd4
    Acctd4 Accredited Partner Posts: 3,322 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert

    Hi Glynis

    Payroll is always based on payment date eg when paid so I would stick to the expense account. This is particularly true when using the same Payroll Item(s) for both accruing & taking the hours, otherwise your accounts won’t balance!

    Yes, thanks to the different reporting requirements for STP2, it’s now necessary to separate TOIL when taken v paid out on termination, so we now need separate Payroll Items for it, for those scenarios 🤨 HOWEVER, the first one should be mapped to Other Paid Leave (not Gross Wages) & the 2nd to Overtime

    As long as both Payroll Items are specifically configured to TOIL, there shouldn’t be any issues with tracking as they will both be linked to that same one ☺️

    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

    [email protected]

    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!)
  • GlynisFNQ
    GlynisFNQ Member Posts: 28 ✭✭

    Help again please Shaz! @Acctd4 🙏

    I can't seem to get my TOIL Payroll Item to link up with the Accrual box... it's not coming across...

    Here's my screenshot where I have manually entered the 24.5 hrs (currently calculated externally) but the 'newly accrued' 5.25hrs hasn't added on. I noticed it wouldn't allow me to enter hours, only quantity...

    Oh dear... The 'background' set up must be wrong... 😫

    Perhaps I need to make an appointment with you to set up remote access assistance??? Please??? ☺️

    Thanks as always!!

    Glynis


    I found an OLD thread from 2014 about the set up of TOIL leave but I'm thinking the STP2 changes make this outdated... not to mention that it's very confusing to follow:

    https://downloads.reckon.com.au/library.reckon.com.au/library/pdf/qbi_Time%20in%20Lieu%20payslip%202.pdf

  • Acctd4
    Acctd4 Accredited Partner Posts: 3,322 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert

    Hi Glynis

    If you can shoot me through an email direct, I’ll send you through my doc on it that I’ve written up in line with the current STP2 settings ☺️

    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

    [email protected]

    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!)