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Configuring Allowance settings for STP reporting

by Intuit• Updated 1 year ago

While setting up Single Touch Payroll (STP), specific types of allowances need to be separately itemised on the Income Statement, similar to what currently occurs with payment summaries. The difference with STP however, is that the separately itemised allowances need to be grouped and reported by categories.

How to edit Allowances

To edit an allowance follow these steps:

Select Payroll from the left-hand menu
Select the Payroll Settings tab, then select Pay Categories (Located under Pay Run Settings).
Select the pay category you wish to edit
Choose an option from the dropdown for Payment Summary Classification, then select Save

How to classify allowances for STP

Using the ATO guidance, each allowance category relates to one of the six Withholding for allowances tables that can be accessed from the ATO website here.

If you are unsure of what your allowances should be classified as, please consult with the ATO or your bookkeeper or accountant.

Below are examples for each allowance:

Table	Payment Summary Classification	Additional Notes:
Table 1	Default or Allowance (Other)	All Allowance types in table 1 should be classified as Default with the exception of Deductible expenses which should be classified as Allowance (Other). Examples of 'working conditions, qualifications or special duties' include: Crib, danger, dirt, height, site, shift or travelling time Trade, first aid certificate or safety officer Examples of 'non-deductible expenses' include: Part-day travel (no overnight absence from employee's ordinary place of residence) Meals (not award overtime meal allowance or overnight travel allowance) Motor vehicle for non-deductible travel – eg home to work, including cents per kilometre payments Examples of 'deductible expenses' include: Tools Compulsory uniform or dry cleaning Motor vehicle for work-related travel, including cents per kilometre payments in excess of ATO rate Overseas accommodation for deductible travel
Table 2	Allowance (Car)
Table 3	Allowance (Transport)
Table 4	Allowance (Laundry)
Table 5	Allowance (Meals)
Table 6	Allowance (Transport)	Examples here include domestic or overseas travel allowance above the reasonable limit and all overseas accommodation allowances.

Content sourced from Employment Hero

QuickBooks Online Payroll Standard

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