CareMaster Earning Rates and Allowances and Updating Xero Pay Items Settings

To make sure your workers' timesheets are accurate and compliant with Award requirements, you'll need to set up Earning Rates and Allowances in CareMaster. The recommended way to do this, is by generating all Award Earning Rates and Allowances directly from CareMaster.

This process will:

• Automatically create the required Pay Items in Xero.
• Ensure your worker timesheets reflect the correct Award earning rates.

Alternatively, you can assign your existing Xero Pay Items to the Earning Rates and Allowances. However, if you're using CareMaster Advanced Timesheets, each Earning Rate Assignment will require a corresponding Pay Item to meet Award requirements.

CareMaster Earning Rates and Allowances

To generate the CareMaster Earning Rates and Allowances or to assign your existing xero pay items. Navigate to menu: Admin→ Integrations→ Xero→ Settings

1. Scroll down to the bottom of the page to the Earnings Rate Assignment Settings. Here, you can either generate the CareMaster Earning Rates and Allowances or assign your existing Xero Pay Items.

2. Select the required award relevant to you workers:

   MA000100 - Social, Community, Home Care and Disability Services

   MA000120 - Children's Services Award

Generating CareMaster Earning Rates and Allowances

It’s recommended to generate the CareMaster Earning Rate Assignments under the DEFAULT tab. This option will automatically create each earning rate as a Pay Item in Xero for you. Each Xero Pay Item will be named the same as the Earning Rate Assignment in CareMaster.

1. To generate all the missing CareMaster Earning Rate Assignments, press the Generate Missing Rates button.

   

   This process will automatically assign the items for you and create the corresponding Xero Pay Items.

   

2. On the right hand side of your screen, repeat the same process for Earnings Rate Allowance Assignments. Navigate to the DEFAULT tab and press the Generate Missing Rates button. This will automatically assign the allowances and create the corresponding Xero Pay Items.

   

   

3. After generating the Earning Rates and Allowances with in this guide, refer to: Updating the Xero Pay Items.

   Assigning existing Xero Pay Items

   If you prefer to use your existing Xero Pay Items for Earning Rates and Allowances. Select the required Xero Pay Item from each dropdown field.

   ==Important:== ==If you're using Advanced Timesheets, a Pay Item will be required for each Earning Rate Assignment to ensure compliance with Award requirements.==

   

   Press the Save button after assigning your existing earning rate assignment and allowances

   

Updating the generated Pay Items in Xero to comply with ATO requirements.

Once you've generated your CareMaster Earning Rates and Allowances, be sure to update each new Xero Pay Item created. This step is crucial for ensuring your organisation remains compliant with the Australian Taxation Office (ATO) guidelines. It ensures that earnings, including wages, salaries, and allowances under the MA000100 Social, Community, Home Care and Disability Services Industry (SCHADS) Award or the MA000120 Children Services Award, are accurately recorded. These earnings are generally subject to Pay As You Go (PAYG) withholding.

To maintain accurate payroll processing and compliance with Australian Taxation Office (ATO) regulations, it is essential to regularly review and update your pay item settings in CareMaster. Key Considerations:

• W1 Reportable Status: Ensure all earnings and allowances that are subject to tax reporting are correctly classified as W1 reportable.

• Superannuation Guarantee Contributions (SGC): Verify which pay items should attract superannuation. Some allowances (e.g., laundry or vehicle allowances under the ATO threshold) may be exempt.

• PAYG Withholding Exemptions: Certain allowances may be exempt from PAYG withholding if they fall below the ATO-specified thresholds.

• Award-Specific Requirements: Pay rates and allowances under the relevant Modern Award should align with Fair Work and ATO guidelines.

• ATO Updates: Tax regulations can change, so regularly review the ATO website to confirm your payroll settings remain compliant.

Updating the Xero Pay Items

After the Earning rates and Allowances have been generated by CareMaster.

1. Open your Xero Database.

2. Navigate to menu: Payroll→ Payroll Settings→ Pay items

3. The Pay Items list will display:

   • Existing Xero Pay Items

   • Pay Items generated by CareMaster

   

4. For each new Xero pay item:

   1. Click on the earning rate name to open its details.
   2. Scroll to the bottom of the page.
   3. Review and update the following settings:

      • W1 Reportable Status – Ensure it's correctly classified for tax reporting.

      • Exempt from Superannuation Guarantee Contributions (SGC) – Check if the pay item should attract superannuation.

      • Exempt from PAYG Withholding – Confirm whether the allowance is exempt based on ATO guidelines.

5. Refer to the award details below to ensure the Pay Item settings are correct for each CareMaster Earnings Rate Assignment and Earnings Rate Allowance Assignment.

MA000100 Social, Community, Home Care and Disability Services Industry (SCHADS) Award

Refer to the table below, which outlines the required settings for the Xero Pay Items for the Social, Community, Home Care and Disability Services Industry (SCHADS) Award. The CareMaster earning rates are categorised as Earnings Rate Assignments and Earnings Rate Allowance Assignments. Be sure to align the pay items correctly with the respective categories to ensure full compliance with the ATO guidelines.

• Earnings Rate Assignments

• Earnings Rate Allowance Assignments

Update each Xero Pay item in line with the details below.

Key: ✔️ Enable the setting | ❌ Disable the setting

==Earnings Rate Assignments - MA000100 SCHADS==

XERO PAY ITEMS Earnings Name	PAY ITEM SETTING: W1 Reportable	PAY ITEM SETTING: Exempt from Superannuation Guarantee Contributions (SGC)	PAY ITEM SETTING: Exempt from PAYG withholding
MA000100 24 hour care - payment per shift	✔️	❌	❌
MA000100 Afternoon Shift	✔️	❌	❌
MA000100 Broken shift - working beyond a 12 hour span	✔️	❌	❌
MA000100 Casual Loading	✔️	❌	❌
MA000100 Casual Loading - Overtime	✔️	✔️	❌
MA000100 Less than 10 hour break between shifts	✔️	❌	❌
MA000100 Night Shift	✔️	❌	❌
MA000100 Ordinary Earnings Rate	✔️	❌	❌
MA000100 Overtime - Monday to Saturday first period	✔️	✔️	❌
MA000100 Overtime - Monday to Saturday last period	✔️	✔️	❌
MA000100 Overtime - Public Holiday	✔️	✔️	❌
MA000100 Overtime - Sunday	✔️	✔️	❌
MA000100 Public holiday rate	✔️	❌	❌
MA000100 Saturday Rate	✔️	❌	❌
MA000100 Sunday Rate	✔️	❌	❌

==Earnings Rate Allowance Assignments - MA000100 SCHADS==

XERO PAY ITEMS Earnings Name	PAY ITEM SETTING: W1 Reportable	PAY ITEM SETTING: Exempt from Superannuation Guarantee Contributions (SGC)	PAY ITEM SETTING: Exempt from PAYG withholding
MA000100 Broken shift allowance - multiple breaks	✔️	❌	❌
MA000100 Broken shift allowance - single break	✔️	❌	❌
MA000100 Damaged clothing allowance	✔️	✔️	✔️
MA000100 First Aid Allowance - Casual	✔️	❌	❌
MA000100 First Aid Allowance - Full Time	✔️	❌	❌
MA000100 Laundry Allowance	✔️	✔️	✔️
MA000100 Meal Allowance	✔️	❌	❌
MA000100 Meal Allowance - Overtime exceeding 4 hours	✔️	✔️	✔️
MA000100 On call allowance - any 24 hour period or part thereof on a weekday	✔️	✔️	❌
MA000100 On call allowance - any other 24 hour period or public holiday, or part thereof	✔️	✔️	❌
MA000100 Sleepover Allowance	✔️	❌	❌
MA000100 Uniform Allowance	✔️	✔️	❌
MA000100 Vehicle Allowance - over 5,000 kms	✔️	✔️	❌
MA000100 Vehicle Allowance - up to 5,000 kms	✔️	✔️	✔️

==After updating the Pay Item settings in this guide, refer to:==

• ==Syncing Updates from Xero==

==This step ensures all changes made in Xero are correctly reflected in CareMaster==

MA000120 Children Services Award

Refer to the table below, which outlines the required settings for the Children Services Award**.** The CareMaster earning rates are categorised as Earnings Rate Assignments and Earnings Rate Allowance Assignments. Be sure to align the pay items correctly with the respective categories to ensure full compliance with the ATO guidelines.

• Earnings Rate Assignments

• Earnings Rate Allowance Assignments

Update each Xero Pay item in line with the details below.

Key: ✔️ Enable the setting | ❌ Disable the setting

==Earnings Rate Assignments - MA000120== ==Children Services Award==

XERO PAY ITEMS Earnings Name	PAY ITEM SETTING: W1 Reportable	PAY ITEM SETTING: Exempt from Superannuation Guarantee Contributions (SGC)	PAY ITEM SETTING: Exempt from PAYG withholding
MA000120 Afternoon Shift	✔️	❌	❌
MA000120 Casual Loading	✔️	❌	❌
MA000120 Casual Loading - Overtime	✔️	✔️	❌
MA000120 Early morning shift	✔️	❌	❌
MA000120 Night shift: non-rotating	✔️	❌	❌
MA000120 Night shift: rotating with day or afternoon	✔️	❌	❌
MA000120 Ordinary Earnings Rate	✔️	❌	❌
MA000120 Overtime: Saturday first period	✔️	✔️	❌
MA000120 Overtime: Saturday last period	✔️	✔️	❌
MA000120 Overtime: Weekday first period	✔️	✔️	❌
MA000120 Overtime: Weekday second period	✔️	✔️	❌
MA000120 Public Holiday Rate	✔️	❌	❌
MA000120 Saturday Rate	✔️	❌	❌
MA000120 Sunday Rate	✔️	❌	❌

==Earnings Rate Allowance Assignments - MA000120== ==Children Services Award==

XERO PAY ITEMS Earnings Name	PAY ITEM SETTING: W1 Reportable	PAY ITEM SETTING: Exempt from Superannuation Guarantee Contributions (SGC)	PAY ITEM SETTING: Exempt from PAYG withholding
MA000120 Broken shift allowance	✔️	❌	❌
MA000120 Educational leader allowance (annual)	✔️	❌	❌
MA000120 Educational leader allowance (daily)	✔️	❌	❌
MA000120 Excess fares allowance	✔️	❌	❌
MA000120 First Aid allowance - employed in OOSH care	✔️	❌	❌
MA000120 First Aid allowance - not employed in OOSH care	✔️	❌	❌
MA000120 Laundry allowance (no ironing)	✔️	✔️	✔️
MA000120 Laundry and Ironing allowance	✔️	✔️	✔️
MA000120 Meal allowance - overtime	✔️	✔️	✔️
MA000120 Qualification allowance	✔️	❌	❌
MA000120 Vehicle allowance over 5,000kms - motor car	✔️	✔️	❌
MA000120 Vehicle allowance over 5,000kms - motorcycle	✔️	✔️	❌
MA000120 Vehicle allowance under 5,000kms - motor car	✔️	✔️	✔️
MA000120 Vehicle allowance under 5,000kms - motorcycle	✔️	✔️	✔️

==After updating the Pay Item settings in this guide, refer to:==

• ==Syncing Updates from Xero==

==This step ensures all changes made in Xero are correctly reflected in CareMaster==

How to Update the Unit Cost on a Xero Pay Item

1. Open your Xero Database.

2. Navigate to menu: Payroll→ Payroll Settings→ Pay items

3. Find the specific pay item you want to update (e.g. MA0001000 Sleepover Allowance).

4. Scroll down to the Rate per Unit field and enter the updated unit cost.

5. Press Save to apply the changes.

==After updating the Pay Item settings in this guide, refer to:==

• ==Syncing Updates from Xero==

==This step ensures all changes made in Xero are correctly reflected in CareMaster==

Syncing Updates from Xero

==Why is this important?== This step ensures that all updates made in Xero sync correctly with CareMaster, keeping your payroll data accurate and up to date.

1. After updating your Pay Items in Xero, return to CareMaster.

2. Navigate to menu: Admin→ Integrations→ Xero→ Dashboard

3. After making changes in Xero, press the "Update From Xero" button in CareMaster.

Completing Your CareMaster Xero Integration

To finish setting up the Xero Payroll integration:

Refer to the Xero Worker Setup Guide