Most helpful replyATO Certified Response
ATO Certified Response29 Apr 2024
Hiya @Eudunda888 👋
There are big differences between what the Fair Work Commission call things in Modern Awards and how the ATO classifies payments. This is one of the most frustrating and confusing aspects of payroll: we are governed by two regulators for related items but their guidance is developed in isolation of the other and WE have to figure it out 🙄
Nevertheless, in looking at MA000004 General Retail Industry Award 2020 Clause 19.5 Travelling Time Reimbursement (NOT an actual reimbursement, thanks FWC!) under the Allowances section, note these definition of purpose and circumstances:
(b) The employer must pay the employee at their ordinary rate of pay (or at 150% of that rate on a Sunday or public holiday) for time spent travelling both ways between the employee’s residence (or, if the employer provides transport from a pick up point, between that pick up point) and the other place of work in excess of the time normally spent in travelling to and from their usual place of work.
(c) The employer must also reimburse the employee any additional costs they incurred in travelling to and from the other place of work.
Therefore, if you are paying the amounts defined in S19.5(b) at:
- Ordinary Rate of Pay - then it is Gross, as defined in the ATO STP2 Employer Guidance that explicitly references Travel Time in the left column titled "Include as Gross"
- 150% of that rate on a Sunday or public holiday - then it is Overtime, as defined in the ATO STP2 Employer Guidance that explicitly references Travel Time in the left column titled "Include as Overtime"
If you are paying the amounts defined in S19.5(c):
- Additional Costs - if it is truly reimbursed, then it isn't a payment subject to withholding nor is it reported via STP to the ATO as income. If it is an allowance that you are paying, like Clause 19.7, then report those as per the ATO STP2 Employer Guidance decision tree.
Deanne
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