Tax Information

This is the Payment Summary Type required for Year End reporting.

Valid Payment Summary Type/ Tax Code/ Income Type Combinations

		Tax Code											Recommended Income Type
		A	B	C	H	0	1	2	3	4	5	6
Payment Summary Type	F	Y	Y	Y		Y	Y	Y	Y	Y	Y	Y	Salary and Seasonal Worker
	I	Y	Y	Y		Y	Y	Y	Y	Y	Y	Y	Salary and Seasonal Worker
	J	Y	Y	Y		Y	Y	Y		Y	Y	Y	Salary and Seasonal Worker
	L	Y	Y	Y		Y	Y	Y		Y	Y	Y	Salary and Seasonal Worker
	O	Y	Y	Y		Y	Y	Y		Y	Y	Y	Salary and Seasonal Worker
	P	Y	Y	Y		Y	Y	Y		Y	Y	Y	Pension (Non-Super Annuities)
	S	Y	Y	Y		Y	Y	Y	Y	Y	Y	Y	Salary and Seasonal Worker
	V	Y	Y	Y		Y	Y	Y		Y	Y	Y	Salary and Seasonal Worker
	W				Y				Y	Y			Working Holiday Maker

 

Working Holiday Notes:

If an employee is changing to or from Payment Summary Type 'W', then you may need to produce two Payment Summaries - see the ATO for confirmation. If two Payment Summaries are required, terminate and reinstate the employee, and then update the value in this option.

This is an ATO reporting code.

Note: Mapper requires the full description.

• Once 'H' has been selected in the Tax Code field, this field will be automatically populated with 'Working Holiday Maker (WHM)'.

• If Mapper is used via Automation/Integration, any change to these descriptions will require updates to the files being sent.

• If the Income Type is left blank, the default Income Type will be populated depending on the values set for the Payment Summary Type and Tax Code.

• On the employee Payment Summary and ATO PSAR file, the Income Type shows as S, P, or H (where 1 = S, 2 = P or 3 = H).

The default value in this field, on initial load, is dependent on the value in Payment Summary Type.

This field is mandatory when Preceda Variable *PP_STPPHASE2 = A.

• If Income Stream Type of VOL is provided, the first two characters of the STP Tax Treatment Code must be either VO or VC.

• If Income Stream Type of WHM is provided, the first two characters of the STP Tax Treatment Code must be either HR or HU, or HF.

• If Income Stream Type of SWP is provided, the first two characters of the STP Tax Treatment Code must be WP.

• The Host Country field becomes mandatory if Income Stream Type is FEI.

• The Home Country field becomes mandatory if Income Stream Type is WHM or IAA.

• Income Stream Type code of JDP (Joint Petroleum Development Area) valid to 19/20.

  • Only prior Financial Year updates are permitted for income up to 30/08/2019.

  • This Income Stream Type cannot be reported for dates after 30/08/2019 but if they are, report as:

    • Australian Tax Residents - Foreign Employment Income with Country Code 'TE' for Timor-Leste.

    • Foreign Tax Residents - either Timor-Leste or another foreign country working in a foreign country (Timor-Leste) not in STP scope.

• Pacific Australia Labour Mobility (PALM) is the combination of Seasonal Worker Programme (SWP) and Pacific Labor Scheme (PLS), which is relevant for new hires after 4 April 2022.

  • STP Reporting for a Non-Resident (if selected on TFN Declaration), use SWP Income Stream Type + Payment Summary Type S.

  • STP Reporting for a Resident (if selected on TFN Declaration), use Salary & Wages Income Stream Type + Payment Summary Type I.

This is the tax code relevant to the employee.

Leave the field blank if a flat tax rate is applied and complete the Special Tax Rate field.

If a value is entered into this field, the Special Tax Rate field must be left blank.

Working Holiday Notes:

• If the Employer is registered with the ATO for Working Holiday Makers, and the Employee has provided a TFN Declaration, use Tax Code 'H' (Working Holiday Makers).

• If the Employer is registered and the Employee has not provided a TFN Declaration, use Tax Code '4' (Tax File Number not provided).

• If the Employer is not registered, use Tax Code '3' (Non-Resident).

• In all three instances for Working Holiday Makers, the Income Type field should be set to '3' (Working Holiday Maker).

• If your employee has answered No to the question 'Are you an Australian resident for tax purposes?' on their Tax file number declaration (i.e. a foreign resident), you will need to use Tax Code 8 (Foreign Resident tax rates).

  There are two ways you can withhold from a foreign resident's earnings:

  • If they have not given you a valid TFN, you need to withhold 45% for each $1 of earnings (ignoring any cents).

  • If they have given you a valid TFN, you need to withhold the amount calculated using the foreign resident tax rates below, rounding any cents to the nearest dollar.

   

Valid Selections:

Tax Code	Income Types
H	3 Working Holiday Maker (WHM)
0, 1, 2, 5, 6, A, B, C	1 Salary and Seasonal Worker (default) 2 Pension (non-super annuities)
Blank, 3, 4	1 Salary and Seasonal Worker (default) 2 Pension (non-super annuities) 3 Working Holiday Maker (WHM)

This is a flat percentage to calculate the employee's tax.

• The percentage rate allows up to three whole numbers and two decimal places and must be a positive value.
• If a value is entered in this field, the Tax Code field must be left blank.

This is the employee's Tax File Number provided in the Income Tax Installment Declaration form.

• The Validate button is used to check if the employee's TFN matches the ATO algorithm.
• The Tax File Number cannot be changed while a Payrun that includes the selected employee is in progress.
• If the selected employee has an existing Tax File Number, it is displayed as ######### unless security access is granted to the user on the Define Users screen (i.e. where the field Security Officer = Y).

This is a Supplementary Tax which relates to either T or W on the Tax Tables for STSL deductions for individual employees which are automatically calculated and processed.

This is the value the employee claimed as stated on the Income Tax Installments Declaration form. The annual value is divided into the employee's pay frequency and taken into account when calculating the employee's tax. This field can also be used for an employee claiming a Tax Offset.

Special Tax Allowances are made to employees who work in remote areas.

If a value is entered in this field, a Zone Rebate value must also be entered.

This is the value the employee claimed for Zone A and B on the Income Tax File Number Declaration form.

This is the ABN as used by employees who have a Payment Summary Type of L or V.

This field is mandatory if Income Stream Type is FEI and Preceda Variable *PP_STPPHASE2 = A.

This field cannot be updated when STP has been reported.

Field supported by Single Touch Payroll Health Check and System Health Check items: STP2_MAP_003_C and STP2_MAP_003_P.

Value must be an ISO Certified Country Code and should not be Australia, Norfolk Island, Christmas Island, Cocos (Keeling) Islands or Heard and McDonald Islands according to ATO STP Employer Guide.

Note: The countries listed above are accurate with ATO information based on ATO STP Employer Guide as at 9th March 2022 - we suggest referring to ATO in case the list of countries has changed.

This field is mandatory if the Income Stream Type is WHM and Preceda Variable *PP_STPPHASE2 = A.

This field is also mandatory if the Income Stream Type is IAA and Preceda Variable *PP_STPPHASE2 Position 1 = A and Position 2 = Y.

For IAA employees, this is the country of the payroll from which employees are paid whereas it is the country of nationality based on the visa of WHM employees.

This field cannot be updated when STP has been reported.

Field supported by Single Touch Payroll Health Check and System Health Check items: STP2_MAP_004_C and STP2_MAP_004_P.

Value must be an ISO Certified Country Code and should not be Australia, Norfolk Island, Christmas Island, Cocos (Keeling) Islands or Heard and McDonald Islands according to ATO STP Employer Guide.

Note: The countries listed above are accurate with ATO information based on ATO STP Employer Guide as at 9th March 2022 - we suggest referring to ATO in case the list of countries has changed.

ATO introduced a concept of "Tax Treatment Code" for STP Phase 2. A mandatory field/tag is included in every Pay Event that indicates the PAYGW tax scales and other components that have been applied to determine the employees withholding amounts (apart from Medicare Levy Reduction and Medicare Levy Surcharge are required to be manually set up as extra tax type codes either positive or negative).

Here is the ATO Employer Guide for your reference.

The Tax Treatment Code is a combination of 6 different values together in one string with most information derived from data on Tax Information screen. The information is sourced from the following 6 fields:

• Tax Category
• Tax Option
• STSL
• Medicare Levy Surcharge
• Medicare Levy Exemption
• Medicare Levy Reduction

Tax Category

The option/s in the prompt list are filtered by Tax Category, Tax Code and Payment Summary Type.

The system will default this value based on STP Phase 2 reporting requirements.

Code	Description
R	Regular
S	Seniors and Pensioners
H	Working Holiday Makers
W	Seasonal Worker Programme
F	Foreign Resident
N	No TFN
D	ATO Defined
V	Voluntary Agreement

 

This must be reported in every STP Pay Event (Submit, Current FY update, Prior FY update) when reporting the SBRV2020 (STP Phase 2) service.

Tax Option

The option/s in the prompt list are filtered by Tax Option, Tax Code and Payment Summary Type.

The system will default this value based on STP Phase 2 reporting requirements.

Code	Description
T	Tax Free Threshold
N	No Tax Free Threshold
S	Single
M	Member of a couple
I	Illness separated
R	Registered Employer
U	Unregistered Employer
F	Foreign Resident/ Foreign Resident No TFN Provided
A	Australian Resident/ Australian Resident No TFN Provided
P	Seasonal Worker Programme
V	Downwards Variation
B	Death Beneficiaries
Z	Non-Employees
C	Commissioner's Installment Rate
O	No Commissioner's Installment Rate

 

Valid Tax Options

The prompt options for Tax Option field is dependent on what is selected in Tax Category.

Tax Category	Valid Tax Option Values
R - Regular	T - Tax Free Threshold N - No Tax Free Threshold
S - Seniors and Pensioners	S - Single M - Member of a Couple I - Illness Separated
H - Working Holiday Makers	R - Registered Employer U - Unregistered Employer A - Australian Resident, No TFN Provided F - Foreign Resident
W - Seasonal Worker Programme	P - Seasonal Worker Program
F - Foreign Resident	F - Foreign Resident
N - No TFN	A - Australian Resident F - Foreign Resident
D - ATO Defined	V - Downwards Variation B - Death Beneficiaries Z - Non-Employees
V - Voluntary Agreement	C - Commissioner's Installment Rate O - No Commissioner’s Installment Rate

 

This must be reported in every STP Pay Event (Submit, Current FY update, Prior FY update) when reporting the SBRV2020 (STP Phase 2) service.

STSL

If Supplementary Tax Code is not blank, this defaults to S.

If Supplementary Tax Code is blank, this defaults to X.

Code	Description
S	STSL
X	No STSL

 

This must be reported in every STP Pay Event (Submit, Current FY update, Prior FY update) when reporting the SBRV2020 (STP Phase 2) service.

Medicare Levy Surcharge

By default, this field is set to X - No Tier.

Code	Description
X	No Tier
1	Tier 1
2	Tier 2
3	Tier 3

 

The Extra Tax Percentage A/D Code needs to be manually configured on employees for additional tax to be withheld. This must be based on the % in the ATO Table below if applied.

Income Threshold and Rates from 2014-2015 to 2022-2023
Threshold	Base Tier	Tier 1	Tier 2	Tier 3
Single Threshold	$90,000 or less	$90,001 - $105, 000	$105,001 - $140,000	$140,001 or more
Family Threshold	$180,000 or less	$180,001 - $210,000	$210,001 - $280,000	$280,001 or more
Medical Levy Surcharge (Rate)	0%	1%	1.25%	1.5%

 

This must be reported in every STP Pay Event (Submit, Current FY update, Prior FY update) when reporting the SBRV2020 (STP Phase 2) service.

 

Medicare Levy Exemption

If Tax Code is 6, this defaults to H. If Tax Code is 5, this defaults to F. Otherwise, this defaults to X.

The tax calculation does not change if this is manually changed to H or F. Tax is only calculated different if the Tax Code is either 5 or 6.

Code	Description
F	Full Exemption
H	Half Exemption
X	No Exemption

 

This must be reported in every STP Pay Event (Submit, Current FY update, Prior FY update) when reporting the SBRV2020 (STP Phase 2) service.

 

Medicare Levy Reduction

Tax is not calculated any different based on the option selected here. This is for reporting purposes only and any tax bill or refund will be handled during the submission of Tax Return.

By default, this field is set to X - No Dependents.

Code	Description
0	Spouse Only
1	1 Dependent
2	2 Dependents
3	3 Dependents
4	4 Dependents
5	5 Dependents
6	6 Dependents
7	7 Dependents
8	8 Dependents
9	9 Dependents
A	10 or more Dependents
X	No Dependents

 

This must be reported in every STP Pay Event (Submit, Current FY update, Prior FY update) when reporting the SBRV2020 (STP Phase 2) service.

 

Tax Treatment Code

The Tax Treatment Code is a combination of six different values together in one string, which data is derived in the STP Tax Treatment Code section: Tax Category, Tax Option, STSL, Medicare Levy Surcharge, Medicare Levy Exemption, Medicare Levy Reduction.

The Tax Treatment Code is only required for STP Phase 2 and must be reported in every STP Pay Event (Submit, Current FY update, Prior FY update) when reporting the SBRV2020 (STP Phase 2) service.

There is a relationship between these fields and the STP Employment Basis on the Classification screen where if that field is set to D, then the STP Tax Treatment Code must be DBXXXX and the user cannot change that, and if the field is set to N then it is set to DZXXXX.

For examples of Seasonal Workers, Working Holiday Maker and Foreign Employment Income, see this page.

For a full list of valid ATO Tax Treatment Codes, see this page.