diff --git a/changelog/332.bugfix.rst b/changelog/332.bugfix.rst
new file mode 100644
index 0000000..467c0e5
--- /dev/null
+++ b/changelog/332.bugfix.rst
@@ -0,0 +1 @@
+Fix report of module-level skips (``pytest.skip(reason, allow_module_level=True)``).
diff --git a/testing/test_remote.py b/testing/test_remote.py
index 611ecba..05e4380 100644
--- a/testing/test_remote.py
+++ b/testing/test_remote.py
@@ -1,6 +1,8 @@
 import py
 import pprint
 import pytest
+from pkg_resources import parse_version
+
 from xdist.workermanage import WorkerController, unserialize_report
 from xdist.remote import serialize_report
 import execnet
@@ -293,13 +295,14 @@ class TestWorkerInteractor:
         assert "workeroutput" in ev.kwargs
 
     @pytest.mark.skipif(
-        pytest.__version__ >= "3.0", reason="skip at module level illegal in pytest 3.0"
+        parse_version(pytest.__version__) < parse_version("3.3"),
+        reason="skip at module level illegal in this pytest version",
     )
     def test_remote_collect_skip(self, worker):
         worker.testdir.makepyfile(
             """
-            import py
-            py.test.skip("hello")
+            import pytest
+            pytest.skip("hello", allow_module_level=True)
         """
         )
         worker.setup()
@@ -307,10 +310,9 @@ class TestWorkerInteractor:
         assert not ev.kwargs
         ev = worker.popevent()
         assert ev.name == "collectreport"
-        ev = worker.popevent()
-        assert ev.name == "collectreport"
         rep = unserialize_report(ev.name, ev.kwargs["data"])
         assert rep.skipped
+        assert rep.longrepr[2] == "Skipped: hello"
         ev = worker.popevent("collectionfinish")
         assert not ev.kwargs["ids"]
 
diff --git a/xdist/dsession.py b/xdist/dsession.py
index bc960d3..be3ba77 100644
--- a/xdist/dsession.py
+++ b/xdist/dsession.py
@@ -259,10 +259,10 @@ class DSession(object):
     def worker_collectreport(self, node, rep):
         """Emitted when a node calls the pytest_collectreport hook.
 
-        Because we only need the report when there's a failure, as optimization
-        we only expect to receive failed reports from workers (#330).
+        Because we only need the report when there's a failure/skip, as optimization
+        we only expect to receive failed/skipped reports from workers (#330).
         """
-        assert rep.failed
+        assert not rep.passed
         self._failed_worker_collectreport(node, rep)
 
     def worker_logwarning(self, message, code, nodeid, fslocation):
diff --git a/xdist/remote.py b/xdist/remote.py
index 66b270c..a0afa49 100644
--- a/xdist/remote.py
+++ b/xdist/remote.py
@@ -110,8 +110,8 @@ class WorkerInteractor(object):
         self.sendevent("testreport", data=data)
 
     def pytest_collectreport(self, report):
-        # master only needs reports that failed, as optimization send only them instead (#330)
-        if report.failed:
+        # send only reports that have not passed to master as optimization (#330)
+        if not report.passed:
             data = serialize_report(report)
             self.sendevent("collectreport", data=data)