ATO error code: CMN.ATO.PAYEVNTEMP.000361
Hi, please help. I am trying to set up an employee with a new card file, and they are classified as labour hire. However, I keep getting the error mentioned in the subject. The other text : PaidL...
Forum Discussion
Hi TQ1,
Thanks for your post.
These errors mean that allowance items cannot be provided under Voluntary Agreement, Labour Hire, or Other Specified Payments Income Types. One (or more) employees with a tax certificate category of Voluntary Agreement, Labour Hire, or Other Specified Pay have an allowance entry on their timesheet.
You may need to check the Employee cards >> Payroll details tab >> Taxes >> Income type. If Labour hire is selected as the Income type, the ATO doesn't allow payments of overtime and leave for Labour hire. You will need to confirm the correct Income type is selected.
Please let me know how it goes.
Otherwise, if my response has answered your enquiry, please click "Accept as Solution" to assist other users find this information.
Cheers,
Shella
Income type is Labour hire - this is correct
Ive also got Employment basis Labour hire - as they are a casual labour hire or does this need to change to casual?
Still the same error
Hi TQ1
Labour Hire as an Income Type is only for Contractors not employees. ATO Definition: use Labour Hire to report payments by a business that arranges for persons to perform work or services directly for clients of the entity.
So if you are hiring the person out to other businesses, then the person can be Income Type Labour Hire, otherwise they are Salary & Wages type.
A Contractor they are not entitled to things like leave (at least not according to the ATO). So the ATO will not allow you to classify them as Income Type Labour Hire and pay them leave.
Regards
Gavin
Thank you - so yes I hire that person (as a casual) out to another organisation/entity.
They are my employee. It is traditional labour -hire arrangement
So what do I need to enter in the following :
- Payroll Details > Employment Basis ? what should this be ?
Labour Hire is what I currently have and get this error as highlighted in the original question
- Payroll Details >Taxes? what should this be ?
Again, Labour Hire is what I currently have and get this error as highlighted in the original question
Hi TQ1
See instructions from the ATO Business Implementation Guide:Labour-Hire (LAB)
The business rules for labour-hire are:
- No country codes are permitted to be reported for this Income Type.
- Only contractor payees who have been engaged by a labour hire business may be reported for this Income Type.
- Employees engaged by a labour hire business must not be reported as Labour Hire Income Type, but as their relevant Income Type, such as Salary and Wages, Working Holiday Makers, Seasonal Worker Programme etc.
- Only valid Tax Treatment codes may be reported for this Income Type.
- Only valid Payment Types may be reported for this Income Type.
- Payroll Details > Employment Basis ? what should this be ? - I would suggest Casual - but do check with your tax adviser.
- Payroll Details >Taxes? what should this be ? - I would suggest Income Type be set to S&W as per point 3 above, other settings same as those for a regular employee based on the TFN Declaration they provided - but do check with your tax adviser.
Regards
Gavin
