Pay Types - Deductions (After PAYGW)
Single Touch Payroll Phase 2 has resulted in changes to Deduction reporting. Previously, only salary sacrifices for superannuation were itemised separately. An * indicates a Triple; otherwise, it is a Fact within the STP file used when reporting to the ATO.
There are six Deductions in the After PAYGW category,
| Description | Include in W1 (Total of Salary, Wages & other payments); | Taxable | OTE (SGAA) | Salary Sacrifice Type Code (PAYEVNTEMP266) |
Deduction Type Code (PAYEVNTEMP10) |
Reported as |
|---|---|---|---|---|---|---|
| Child Support Garnishee | No | No | No | G | Deduction (PAYEVNTEMP227)* |
|
| Child Support Deduction | No | No | No | D | Deduction (PAYEVNTEMP227)* |
|
| Union Fees | No | No | No | F | Deduction (PAYEVNTEMP227)* |
|
| Workplace Giving | No | No | No | W | Deduction (PAYEVNTEMP227)* |
|
| After Tax Deduction | No | No | No | Not reported in STP Phase 2 | ||
| After Tax Superannuation Contribution | No | No | No | |||
After PAYGW Deductions Explained.
After Tax Deduction
After Tax Deduction applies when the Payee requests that you deduct an amount from their Net Pay.
The reporting of payments for After Tax Deduction has not changed per the Australian Taxation Office Single Touch Payroll Phase 1 guidance. After Tax Deduction continues to be non-reportable.
Payments with this Deduction use the $ (or % of Rate Per Hour) set within the Deduction. These payments are not considered W1 (Total of Salary, Wages & other payments), Taxable or OTE (SGAA).
After Tax Superannuation Contribution
After Tax Superannuation Contribution applies when the Payee requests to forego part (either percentage or dollar value) or all of their net pay, which the Payer contributes to their Superannuation Fund at the end of the reporting period.
The reporting of payments for After Tax Superannuation Contribution has not changed per the Australian Taxation Office Single Touch Payroll Phase 1 guidance. After Tax Superannuation Contribution continues to be non-reportable.
Payments with this Deduction use the $ (or % of Rate Per Hour) set within the Deduction. These payments are not considered W1 (Total of Salary, Wages & other payments), Taxable or OTE (SGAA).
Child Support Deduction
Child Support Deduction applies wthe Payee is subject to a notice per section 45 of the Child Support (Registration and Collection) Act 1988. The deduction amount is typically a fixed amount Per Pay Period Deduction and is subject to a Protected Earnings Amount (PEA). To learn more about Child Support, please visit Services Australia.
The reporting of payments for Child Support Deduction are now included per the Australian Taxation Office Single Touch Payroll Phase 2 guidance. Child Support Deduction is reported separately under Deduction Type Code = D.
Payments with this Deduction use the $ (or % of Rate Per Hour) set within the Deduction. These payments are not considered W1 (Total of Salary, Wages & other payments), Taxable or OTE (SGAA).
Child Support Garnishee
Child Support Garnishee applies when the Payee is subject to a notice per section 72A of the Child Support (Registration and Collection) Act 1988. The deduction amount can be either a percentage of the Payee's Taxable Gross Income (before Salary Sacrifice is deducted), a Lump Sum amount or a Per Pay Period Deduction until the debt is resolved. To learn more about Child Support, please visit Services Australia.
The reporting of payments for Child Support Garnishee are now included per the Australian Taxation Office Single Touch Payroll Phase 2 guidance. Child Support Garnishee is reported separately under Deduction Type Code = G.
Payments with this Deduction use the $ (or % of Rate Per Hour) set within the Deduction. These payments are not considered W1 (Total of Salary, Wages & other payments), Taxable or OTE (SGAA).
Union Fees
Union Fees apply when the Payee requests that you deduct an amount from their Pay to be paid to their union or professional association.
The reporting of payments for Union Fees are now included per the Australian Taxation Office Single Touch Payroll Phase 2 guidance. Union Fees is reported separately under Deduction Type Code = F.
Payments with this Deduction use the $ (or % of Rate Per Hour) set within the Deduction. These payments are not considered W1 (Total of Salary, Wages & other payments), Taxable or OTE (SGAA).
Workplace Giving
Workplace Giving applies when you have established a workplace giving program by ATO guidelines and have chosen not to reduce the amount of PAYG withholding and also if you have not established a formal workplace giving program. Please visit the ATO's Website to learn more about Workplace giving programs.
The reporting of payments for Workplace Giving are now included per the Australian Taxation Office Single Touch Payroll Phase 2 guidance. Workplace Giving is reported separately under Deduction Type Code = W.
Payments with this Deduction use the $ (or % of Rate Per Hour) set within the Deduction. These payments are not considered W1 (Total of Salary, Wages & other payments), Taxable or OTE (SG
