Some amounts paid to employees need to be reported separately on their income statements, for example tool or motor vehicle allowances may need to be shown as 'Allowances'.
For these types of amounts, you can specify where on the income statement they should appear by using the 'Payment classification' setting for the relevant Pay Category or Deduction Category.
The different payment classification options are listed below. The name of the classification corresponds to the section of the employee income statement where amounts will be reported.
Payment classifications for pay categories
- Default (amounts paid to pay categories with the default classification are reported as "Gross Payments" on an employee's income statement)
- Lump Sum A (Type R)
- Lump Sum A (Type T)
- Lump Sum B
- Lump Sum D
- Lump Sum E
- Community Development Employment Projects (CDEP) payments
- Exempt foreign employment income
- Exclude from payment summary (income statement)
Payment classifications for deduction categories
- Union or Professional Association Fees
- Workplace Giving
If you'd like some more information about how different types of payments need to be reported on employees' income statements, please consult the relevant ATO documentation here.
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