Add and edit pay items and allowances

Adding or Adjusting pay items and allowances in your platform

Pay items and allowances can be set up within your platform. The common use cases for these are:

  • Allowances specified in modern awards or enterprise agreements
    • Tool allowance,
    • Travel allowance,
    • Laundry allowance, etc
  • Custom pay items
    • Bonuses,
    • Backpay,
    • Commission, etc

ATO_pill_-_updated.png Fields marked with this red ATO badge denote information that relates to STP Phase 2. Although not currently mandatory, it is recommended that you complete these accurately per the ATO guidelines

  Please note: How pay items or allowances are set up can impact your End of Financial year (EOFY) reporting and how it is reported to the ATO via Single Touch Payroll (STP).

 To add a new pay item/allowance

You can create new pay items and allowances at any time. To do this:

    1. Navigate to Awards & Agreements > Pay Items /Allowances then click Add.


    2. Fill in all the required fields
      • Select Type: Pay Item or Allowance. The type will affect how items filter through to reporting
      • Title: This will be visible in reporting.
      • Valid in: Select the State the pay item/allowance is valid in. Select Australia (NAT) if it's the same across all states. You may need to create separate items for specific states.
      • Interval: Select the pay item/allowance interval depending on your item type: hour, day (per shift), weekly, hour (inputted by employee), km (inputted by employee).
      • Accrual Allowance: 
        • Yes - Allowance accrues against the interval specified (hours, days, weeks, etc). The allowance will not typically be paid directly to the employee. Some use cases for this include:
          • A bonus that is based on hours worked.
          • The value paid to an alternate fund (e.g. BERT)
        • No - Allowances that are paid directly to the employee based on the interval. This will be the option that is most commonly used. 
      • Are you required to withhold tax: Yes or No. If yes, select from the following options:
        • Marginal Tax (Default)
        • Method A applies to back payments, bonuses or similar lump sum payments irrespective of the financial year. The additional payment is apportioned over specified periods, applying the averaged amount to the current gross earnings.
        • Method B (i)  applies to back payments relating to a specific period within the current financial year. The PAYG shortfall from tax previously withheld will be calculated based on the current tax tables for the specified period to which the back payment applies.
        • Method B (ii) applies to back payments relating to a prior financial year or additional lump sum payments regardless of the financial year. This method averages all additional payments applied within the financial year across the number of annual pay periods and applies it to the average total earnings.
        • For more information on each method please see the Australian Tax Office (ATO)'s Schedule 5 End of Financial Year Reporting & Payment Summaries:
      •  Is the allowance reported through STP? If so how should it be submitted?
          This field relates to reporting to STP Phase 1; We are currently transitioning to STP Phase 2. As such, this field is mandatory until your transition to Phase 2 has been finalised.
        • No- this will not be reported through Single Touch Payroll (STP).
        • Yes (include total allowance in Gross Payment).
        • Yes (show total allowance separately in an allowance box with explanation).
          If you select this option you'll also be prompted to select from the following:
          • Car 
          • Transport
          • Laundry
          • Meals
          • Travel
          • Other - for all other allowances that do not fit into the above categories.
        • Lump Sum A Redundancy.
        • Lump Sum A Termination.
        • Lump Sum B.
        • Lump Sum D.
        • Lump Sum E.
      • STP Category ATO_Pill.png
          Note: the below reporting categories relate to STP Phase 2. This is not currently mandatory, however, STP Phase 2 reporting categories should be set prior to commence the transition process.

        • Gross
        • Overtime
        • Bonuses and Commissions
        • Directors Fees
        • Lump Sum A: Redundancy
        • Lump Sum A: Termination
        • Lump Sum B
        • Lump Sum D
        • Lump Sum E
        • Lump Sum W
        • Exempt Foreign Income
        • Allowance - Now Reported Separately: If this is selected a new field will display below with the following options:
        • Allowance ATO_Pill.png

          • Cents per Kilometre
          • Award Transport Allowance
          • Laundry Allowance
          • Overtime Meal Allowance
          • Travel and Overseas Accommodation Allowance
          • Tool Allowance
          • Task Allowance
          • Qualification Allowance
          • Other Allowances - selecting this will display another field with the below options:
          • Other Allowance Category ATO_Pill.png

            • Non-Deductible
            • Uniform
            • Private Vehicle
            • Home Office
            • Transport/Fares
            • General
      • Does super guarantee apply? Super will be paid on this allowance.
      • Variables Applied
        • Workers’ Compensation - Will be calculated with this allowance included.
        • Payroll tax - Will be calculated with this allowance included.
        • Superannuation - Will be paid on this allowance.
        • Public liability - Will be calculated with this allowance included.
      • Specific Operations (optional)-  Leave this empty if the allowance applies to all operations.
        Selecting operations here will mean that the allowance can only be applied to employees working in this operation.
      • Apply to Positions (optional)- Leave this empty if the allowance applies to all positions. Selecting positions will mean that only employees with those positions can have the allowance applied. 
      • Label and amount per [interval] ($) - the rate will not be saved if you do not enter a Label. This label is what will appear in the 'Pay Items/Allowances' drop-down when selecting pay items in the payslip. If no Label is entered, the allowance/pay item will not show in the payslip as an option. You can label the pay item/allowance the same as the title or use this field to call it something different.
      • Select by
        • Operation - selectable by operation users (this is a legacy feature)
        • Candidate - with this enabled, employees can apply for their own allowance when using submit shifts
      • Optional - This option works in conjunction with 'Apply to Positions'. With an allowance applied to a specific position, it will automatically appear on the payslip, checking 'optional' will remove that automation.
      • Apply to Award(s) - Select all awards that the pay item or allowance applies to. If no award is selected, the allowance/pay item will not show in the payslip as an option.
    3. Save.

 

To view or edit an existing pay item/allowance
  1.  In the quick menu select the hamburger icon to navigate to the full menu > select Awards & Agreements.
  2. Select the Pay Items/Allowance button, this will display the Pay Item and Allowance Library.
  3. The search function will show you results from each tab you are in. Or you can select the Pay Items or Allowance buttons to view the details.
  4.  To edit an Allowance you can select the Edit button, make the desired changes and save.

Not all fields are able to be edited for an existing pay item or allowance. You can edit the following fields:

  • Title - This is used internally in the system and has no impact on how the pay item or allowance functions.
  • Valid in - This will make the pay item or allowance valid in different states which can affect which operations have access to it.
  • Is the allowance reported through STP? - Changes made to how this is reported through STP will be updated in STP. 
  • STP Category - This is new and relates to STP Phase 2. Changes to this will be reported through STP.
  • Specific Operations - Optionally choose which specific operations the allowance or pay item applies to.
  • Apply to Positions - Optionally specify the pay item or allowance to specific positions only.
  • Label - Overrides the 'title' of the pay item or allowance. Seen on payslips and in reports.
  • Allowance per [interval] - the rate of the allowance can be updated.
  • Select by
    • Operation - selectable by operation users (this is a legacy feature).
    • Candidate - with this enabled, employees can apply for their own allowance when using submit shifts.
  • Optional - This option works in conjunction with 'Apply to Positions'. With an allowance applied to a specific position, it will automatically appear on the payslip, checking 'optional' will remove that automation.

If you need to edit a field that you are unable to do so, the correct process will be to create a new pay item or allowance.

Updating existing allowances for STP Phase 2

With the transition to STP Phase 2, existing pay items and allowances are able to be edited to suit the new reporting requirements. 

For the time being, the STP Phase 2 specific fields are not mandatory but will become so in the future. To ensure that you're ready for this, please update your pay items and allowances at your earliest convenience.

Please also note that the existing STP categories are still mandatory during this transition period.

The STP Phase 2 specific fields are denoted by the red ATO badge next to them and are as follows:

STP Category ATO_Pill.png

  • Gross
  • Overtime
  • Bonuses and Commissions
  • Directors Fees
  • Lump Sum A: Redundancy
  • Lump Sum A: Termination
  • Lump Sum B
  • Lump Sum D
  • Lump Sum E
  • Lump Sum W
  • Exempt Foreign Income
  • Allowance - STP Phase 2 requires further categorisation of allowances. See the below options:

Allowance ATO_Pill.png

    • Cents per Kilometre
    • Award Transport Allowance
    • Laundry Allowance
    • Overtime Meal Allowance
    • Travel and Overseas Accommodation Allowance
    • Tool Allowance
    • Task Allowance
    • Qualification Allowance
    • Other Allowances - selecting this will display another field with the below options:

Other Allowance Category ATO_Pill.png

      • Non-Deductible
      • Uniform
      • Private Vehicle
      • Home Office
      • Transport/Fares
      • General
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