With the introduction of STP2 came changes to the way that Salary and Wages are reported to the ATO.
With STP2 you are now required to report your payroll figures with disaggregated totals, which include separation of leave, allowances and overtime to name a few, these new totals will all come under Gross Taxable.
Residual Gross is any payment that has been coded to Gross for STP2 purposes.
Please look at the below instructions and table to assist in the balancing process.
Go to STP2, once opened go to STP Update, select All Employees, use the drop down in Financial Year to select the correct FY, OK.
Once populated, you can click on any heading in the grid and move it to your preferred order, you can also right mouse click and select Customise, this will open up the Customization box, click on any heading and drag it into your grid.
If you put Gross Taxable and Residual Gross (STP) side by side, you will be able to see the difference clearly.
To work out the difference this will be in your disaggregated Allowances, Leave, Overtime, Bonus & Commissions, Termination payments, Salary Sacrifice basically anything that isn't reported as Gross.
STP Update Grid Headings | Totals | Totals | Difference |
Gross Taxable | $976501.95 |
|
|
Less Residual Gross | $853194.49 |
| $123307.46 |
Paid Leave Total |
| $101176.53 |
|
Overtime |
| $13330.70 |
|
Bonus & Commision |
| $2000.00 |
|
Allowance - Laundry |
| $256.60 |
|
Allowance - Tool |
| $157.00 |
|
Allowance - Task |
| $1132.49 |
|
Allowance - Other Employee |
| $994.14 |
|
Salary Sacrifice - added back in |
| ($5740.00) |
|
ETP |
| $10000.00 |
|
Lump Sum Payments |
| $0.00 |
|
Disaggregated totals |
|
| $123307.46 |
Note: A few things to remember, and try while balancing Residual Gross to Gross Taxable
In the customization box you have headings that start with Total, as in the example above I have used Total Paid Leave, I have used this method instead of individual Paid Leave for the different components, as I knew they were all taxed, use one method, or the other, not both.
For allowances, I have brought them into the grid as separate headings instead of Total Allowances, this is because some of the allowances we use are after tax so therefore, not included in Gross Taxable. A good report to run to check is, Reports, Allowances, Year to Date.
If you are wanting to check what components are reported to what reporting group, you can check by going to Setup, STP2 Setup, Next, Next and continue to click on Next for each page to find the pay component you are looking for.
Always remember to add any Salary Sacrifices back in.
Reports that may be useful in the processing of EOY figures