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There are 3 steps you should follow to work out how to report allowances in STP Phase 2:
- Identify whether the amount is a reportable allowance.
- Identify whether the allowance needs to be disaggregated.
- Identify the purpose of the allowance.
e-PayDay Go is designed to meet the ATO and Fair Work requirements, offering customisable settings to ensure compliance.
The Allowance Record contains three sections:
- Allowance Details - allows the entry of the Description, $ or %, etc.
- Taxation - contains the specific STP reporting rules.
- Superannuation - determines if OTE (Ordinary Time Earnings).
Allowance Details
Active is disabled in the System Default Pay Types; however, it can be changed when creating or editing a User Modified Pay Type. This field allows you to deactivate any Allowance which is no longer required.
Description is disabled in the System Default Pay Types; however, it can be changed when creating or editing a User Modified Pay Type. This field allows you to define the description which will be reported on the Payee's Pay Slip.
$ (or % of Rate Per Hour) is disabled in the System Default Pay Types; however, it can be changed when creating or editing a User Modified Pay Type. This field allows you to define if this payment is a set rate ($) or a percentage (%) of the Payee's Rate Per Hour.
- $ - The rate is obtained from within the Pay Type, Advanced Pay Template or Process, depending on where it has been entered.
- % - The rate is calculated by referring to Rate Per Hour within the Payee Master File and multiplying based on the % entered or the Paid By setting.
Paid By is disabled in the System Default Pay Types; however, it can be changed when creating or editing a User Modified Pay Type.
- Per Hour - The quantity is obtained from OTE Hours Per Week when the Pay Type is loaded in the Advanced Pay Template or Process.
- If % is selected, the rate is calculated by referring to Rate Per Hour within the Payee Master File and multiplying based on the % entered.
- If $ is selected, the rate is obtained from within the Pay Type, Advanced Pay Template or Process, depending on where it has been entered.
- Per Pay Period - The quantity defaults to 1 when the Pay Type is loaded in the Advanced Pay Template or Process. The Rate is based on the $ (or % of Rate Per Hour) setting.
- If % is selected, the rate is calculated by referring to Rate Per Hour within the Payee Master File and multiplying based on the % entered.
- If $ is selected, the rate is obtained from within the Pay Type, Advanced Pay Template or Process, depending on where it has been entered.
- Per Lump Sum - The quantity defaults to 1 when Pay Type is loaded in the Advanced Pay Template or Process.
- If % is selected, the rate is calculated by referring to Rate Per Hour within the Payee Master File and multiplying based on the % entered.
- If $ is selected, the rate is obtained from within the Pay Type, Advanced Pay Template or Process, depending on where it has been entered.
- Per Day - The quantity defaults to 1 when the Pay Type is loaded in the Advanced Pay Template or Process.
- If % is selected, the rate is calculated by referring to Rate Per Hour within the Payee Master File and multiplying based on the Hours Per Day setting.
- If $ is selected, the rate is obtained from within the Pay Type, Advanced Pay Template or Process, depending on where it has been entered.
- Per Piece -The quantity defaults to 1 when the Pay Type is loaded in the Advanced Pay Template or Process.
- If % is selected, the rate is calculated by referring to Rate Per Hour within the Payee Master File and multiplying based on the % entered.
- If $ is selected, the rate is obtained from within the Pay Type, Advanced Pay Template or Process, depending on where it has been entered.
- Per KM - The quantity defaults to 1 when the Pay Type is loaded in the Advanced Pay Template or Process.
- If % is selected, the rate is calculated by referring to Rate Per Hour within the Payee Master File and multiplying based on the % entered.
- If $ is selected, the rate is obtained from within the Pay Type, Advanced Pay Template or Process, depending on where it has been entered.
Report To Group is disabled in both System Default and User Modified Pay Types and defines the section to which the dollar amount associated will be included in Reports.
Hide Quantity on the Pay Advice Slip and Summary Reports is disabled in the System Default Pay Types; however, it can be changed when creating or editing a User Modified Pay Type. This field defines if the Quantity/Hours associated with this pay rate should be shown or hidden from the Pay Advice Slip and Pay Advice Summary Reports.
Hide Rate on the Printed Pay Slip is disabled in the System Default Pay Types; however, it can be changed when creating or editing a User Modified Pay Type. This field defines if the Rate associated with this Allowance should be shown or hidden from the Pay Advice Slip.
Available in All Purpose Allowance is disabled in the System Default Pay Types; however, it can be changed when creating or editing a User Modified Pay Type. This field defines if this Allowance should be available for selection in All Purpose Allowance within the Payee Master File.
Taxation
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.
Superannuation
OTE (SGAA) determines if the amount associated with this Allowance is considered to be Ordinary Time Earnings per the Superannuation Guarantee (Administration) Act. If the checkbox is not selected, the Pay Rate is not considered to be Ordinary Time Earnings per the Superannuation Guarantee (Administration) Act.
OTE (Industrial Instrument) determine if the amount associated with this Allowance is considered to be Ordinary Time Earnings per the Industrial Instrument the Payee has been hired.
Hours for Employer SG determines if the amount associated with this Allowance is considered to be included in the Hours Calculation for Employer SG.
This relates to the Under 18 and Domestic and Private Worker Employer SG Rules.
