Pay Rates are used on pay lines when processing a pay run, in addition to the required Allowances and Deductions. We have provided the most commonly needed Pay Rates as System Defaults (Templates) used "as is" or copied and modified to suit your requirements.
With Single Touch Payroll Phase 2, significant changes have occurred to reporting Pay Rates. Previously, all Pay Rates were reported as part of Gross. A majority of Pay Rates are now reported separately.
For ease of use, Pay Rates are sorted into separate categories.
Worked - Includes all the typical pay types you would need to pay the actual hours worked by your Payee (e.g., Ordinary Time, Overtime, etc.).
Bonuses and Commissions - Once-off payments for incentives (e.g., Overtime Bonus, Commission on Sales).
Leave - Designed for when a Payee is either taking or cashing out some or all of their leave entitlements.
Back Payments - Used when a Payee is underpaid to ensure the correct PAYGW Calculation is applied.
Termination - These Pay Types are not available for selection until Cease Employment is used within the pay run. The Cessation Reason determines which Pay Types are available.
Reimbursements - Repay the Payee for expenses incurred and not included in their Income Statement.
Adjustments - Increases or reduces the relevant value within the pay run (PAYGW, Employer SG and RESC). The result is reported, but not the individual action.
🎯 If you are unsure which Pay Rates apply to your circumstances, please refer to the Payee's Employment Contract or obtain advice from the Australian Taxation Office or Fair Work Ombudsman.
Allowances are used on pay lines when processing a pay run, in addition to the required Pay Rates and Deductions. We have provided the most commonly required Allowances as System Defaults (Templates) that can be used "as is" or copied and modified to suit your requirements.
With Single Touch Payroll Phase 2, there have been significant changes to the reporting of Allowances. In STP Phase 1, some Allowances were reported as part of Gross, and others were reported separately. All Allowances are now reported separately using the following codes in STP Phase 2: Please refer to the ATO for detailed guidance for separately reported Allowance Types.
CAR (Car expense) is now reported as CD (Cents per Kilometre).
TRANSPORT (Award Transport) is now reported as AD (Award Transport Payments).
LAUNDRY (Laundry Allowance) is now reported as LD (Laundry Allowance).
MEALS (Overtime Meal Allowance) is now reported as MD (Overtime Meal Allowance).
TRAVEL (Travel Allowance) is now reported as RD (Travel Allowance).
OTHER (Other Allowance) is now reported as OD (Other Allowances).
NEW - TD (Tool Allowance), KN (Task Allowances) and QN (Qualification Allowances).
For ease of use, Pay Rates are sorted into separate categories.
Allowances (Back Payments) - Used when a Payee is underpaid to ensure the correct PAYGW Calculation is applied.
Allowances (Termination) - Used when a Payee is being ceased as they have passed away (Cessation Reason = Deceased) and payment is due to the Beneficiary.
Deductions are used on pay lines when processing a pay run, in addition to the required Pay Rates and Allowances. We have provided the most commonly required Deductions as System Defaults (Templates) that can be used "as is" or copied and modified to suit your requirements. Deductions are separated into an individual category for ease of use and contain deductions that decrease the Payees Gross Pay (before PAYGW is calculated) OR Net Pay (after PAYGW is calculated).
🎯 If you are unsure if these Deductions apply to your circumstances, please refer to the Payee's Employment Contract or obtain advice from the Australian Taxation Office or Fair Work Ombudsman.
Single Touch Payroll Phase 2 has resulted in changes to Deduction reporting. Previously, only salary sacrifices for superannuation were itemised separately. There are eleven deduictions in the Deductions category.