Taxation Explained (Allowance File)

Aimee Slatter

Dec 06, 2024

906

🎯 Below is an example of Award Transport or Fares Allowance (Private Purposes) (S&W & OTE). To view the exact settings for the Allowance you require, please access System Default Allowances to select the one you wish to view.

Category is disabled in System Default and User Modified Allowances and defines the group of payments this type falls into.

Payee Tax Treatment Categories is disabled in System Default and User Modified Allowances and defines which Payee Tax Treatments can have this Allowances selected within Process based on the ATO's STP Phase 2 requirements.

The Payee Tax Treatment Categories presently available in e-PayDay Go are;

Regular (R).
Seniors and Pensioners (S).
Working Holiday Maker (H).
No TFN (N).
Foreign Resident (F).
Seasonal Worker Programme (W).
Horticulturalists and Shearers (C).

Taxable is disabled in System Default and User Modified Allowances and defines if the amount associated with this payment is considered Taxable per the relevant Payee Taxation Schedule.

🎯 Refer System Default Allowances which are considered to be Taxable and/or System Default Allowances which are not considered to be Taxable.

Include in W1 - Total salary, wages and other payments is disabled in System Default and User Modified Allowances and defines if the amount associated with this payment is included in Gross Wages (W1).

🎯 Refer System Default Allowances which are considered to be Salary & Wages (W1) and/or System Default Allowances which are not considered to be Salary & Wages (W1).

Include in Gross (STSL, MLS) is disabled in System Default and User Modified Allowances and defines if the amount associated with this payment is included in Gross for calculating Student and Training Support Loans (STSL) and Medicare Levy Surcharge (MLS) repayments.

Ordinary Pay/Wages (Portable Long Service Leave) is disabled in System Default Pay Rates, enabled in User Modified Pay Types and defines if the amount associated with this payment is included in the Portable Long Service Leave Report for each State/Territory.

Include in Wages Declaration (WorkCover) is disabled in System Default Pay Rates, enabled in User Modified Allowances and defines if the amount associated with this payment is included in the Wages Declaration (WorkCover) Report.

Include in Payroll Tax (SRO) is disabled in System Default Pay Rates, enabled in User Modified Allowances and defines if the amount associated with this payment is included in the either the Payroll Tax (SRO) or Payroll Tax (SRO) (Non Taxable Wages) Report.

Tax Treatment is disabled in System Default and User Modified Allowances and defines the Taxation Schedule to which this payment applies.

Income Stream is disabled in System Default and User Modified Allowances and defines the ATO Income Stream for STP Phase 2 Reporting, which includes this payment.

Tuple Name is disabled in System Default and User Modified Allowances and defines the ATO Tuple Name for STP Phase 2 Reporting, which includes this payment.

Allowance Type Code is disabled in System Default and User Modified Allowances and defines the Type Code for STP Phase 2 Reporting, which includes this payment.

Other Allowance Description is disabled in System Default Allowance, enabled in User Modified Allowances and defines the description required when Allowance Type Code = OD.

Include in Gross (Salary Sacrifice) is disabled in System Default and User Modified Allowances and defines if the amount associated with this payment is included in Gross for calculating Salary Sacrifice.