Aust localisation inconsistent with ATO requirements

“W1 Total salary, wages and other payments” is calculated by Manager in the following Country specific localisations

  • Business Activity Statement - Simpler
  • Business Activity Statement - Full
  • Single Touch Payroll Worksheet

In summary the value reported by Manager is different to that required by Manager because

  • Manager includes only Payslip earnings item of ‘ATO reporting category’ type ‘Gross payments’
  • ATO requires inclusion of all payslip earning items except ‘Exempt foreign employment income’

As a result using these Managers localisation for submissions to the ATO will result in the submission of erroneous data unless errors in the localisations are manually corrected by each Manager user.

In more detail

Business Activity Statement

ATO Definition of W1

Include at W1 total gross payments from which you are usually required to withhold amounts. These payments include:

  • salary, wages, allowances and leave loading paid to employees (including those subsidised by JobKeeper payments)
  • employment termination payments
  • payment for unused annual or long service leave
  • super lump sum
  • Commonwealth education and training payments.

And categories Manager does not directly support

  • director fees
  • salary and allowances paid to office holders (including members of parliament, statutory office holders, defence force members and police officers)
  • payments made by a labour hire firm to labour hire workers under a labour hire arrangement
  • payments to religious practitioners
  • superannuation (super) income stream
  • attributed personal services income.

Value Manager displays labelled as W1

Payslip earnings item of ‘ATO reporting category’ can have the following values

  • Gross payments
  • CDEP payments (Community Development Employment Projects)
  • Allowance - Car
  • Allowance - Transport
  • Allowance - Travel
  • Allowance - Meals
  • Allowance - Laundry
  • Allowance - Other
  • Lump sum A - Termination
  • Lump sum A - Redundancy
  • Lump sum B
  • Lump sum D
  • Lump sum E
  • Exempt foreign employment income

All of these except "Exempt foreign employment income’ must be included in W1 by the ATO definition.

In contrast Manager only includes Payslip earnings item of ‘ATO reporting category’ of type ‘Gross payments’

Single Touch Payroll

ATO Definition of ‘Period W1’

Table 1: Mandatory reporting Labels

  • A payment to an employee, such as salary or wages
  • A return to work payment to an individual
  • A payment for termination of employment
  • An unused leave payment
  • A payment of parental leave pay

Manager value displayed labelled as ‘Period W1’

Manager uses the same definition as it uses for the Business Activity Statement reports so again

  • only includes Payslip earnings item of ‘ATO reporting category’ of type ‘Gross payments’
  • Exempt foreign employment income is excludes (as is appropriate)
  • In error all other ‘ATO reporting category’ types are also excluded.

Community correction has been suggest How to implement country-specific report in Manager - #31 by lubos However doing so requires

  1. Support of an “or” operator
  2. User editable flow control in localisations.

Or filters have been discussed however as far as I know they are not yet implemented

Flow control maybe currently possible in Country specific reports in Manager however how it is now done is not clear to me at this time.

Thinking about it , an alternative solution is for Manager to remove support for Payslip earnings items which can not be reported to the ATO in W1. Then W1 in Manager could include all Payslip earnings items in W1

Which the ATO defines as:

Cannot be reported

Some payments cannot be reported through STP. These include:

  • payments that are generally not paid through a payroll process
  • payments made by payers to recipients that are generally not their employees, such as
  • Services Australia
  • investment bodies and managed investment funds
    purchasers of certain taxable Australian property.

I’m currently experimenting if I can replicate these report transformations using no-coding approach. So rather than writing Liquid markup and HTML, you could define these reports in visual way like custom reports are implemented now.

I hope this doesn’t mean we lose the liquid code. Because disabling it would surely reduce possibilities a lot.

Moved to Country Specific localisation approach review - #3 by Patch

Attached is an enhanced versions of
Single Touch Payroll Worksheet - Enhanced.manager (152 KB)

It adds

  • W1 includes all payslip earning items except ‘Exempt foreign employment income’ However due to Manager limitation this involves loosing drill down of W1

  • Support to multiple “Other allowance”. The ATO allows up to 4. In this localisation it is set by the hard coded constant “AllowanceOtherMax” but probably best set as a global custom field for the business (as changing it requires changes on the web site). The “Other allowance description” is taken from the “Payslip Earning Item” “Name”. Drill down on the amount is lost due to Manager group_by limitations. Note this addition enables the Worksheet to be used for Job keeper submissions.

  • Unused items are optionally hidden for each employee. Configured by the constant “showZero”

The reason I have not added it via How to implement country-specific report in Manager - #31 by lubos is

  • The localisation interface does not currently support drill down after “concat” / “or” operator or “group_by”, but later support for both had been hinted at.

  • I was not sure if loss of drill down on “W1” and “Allowance - Other” (for those who used it) out weighed the gain in correcting the error in “W1” for those who used Payslip earnings item of ‘ATO reporting category’ type other than “Gross payments” or required a specific ATO “Other allowance description”

Fixed in the latest version (21.6.59)

Basically, under report transformations, all these categories needed to be added under W1 if they are to be included in W1.

The same has been done on BAS.

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