Reference guide for STP Phase 2 pay category payment classifications

With the introduction of STP Phase 2, there are a number of new payment classifications available for use. Detailed definitions for each payment classification can be found in this article.

The following is a reference guide to help with selecting the applicable payment classification when creating pay categories.

Payment type Pay category payment classification
Allowance - domestic accommodation where amount does not exceed ATO reasonable amount Exclude from payment summary (income statement)
Allowance - domestic accommodation where amount exceeds ATO reasonable amount Allowance - travel
Allowance - overseas accommodation for business purposes Allowance - other. The ATO recommends the allowance description should be stated as G1 General
Allowance - overseas accommodation for private purposes Allowance - other. The ATO recommends the allowance description should be stated as ND Non-deductible
Allowance – all-purpose Allowance - tasks
Allowance – car – flat rate allowances, regardless of kilometres travelled Allowance - other. The ATO recommends the allowance description should be stated as V1 Private vehicle
Allowance – cents per km – for a car in excess of the ATO rate for business related travel. Allowance - cents per km
Allowance – cents per km – for a car up to the ATO rate for business related travel Allowance - cents per km
Allowance – cents per km – for private travel such as travel between home and work Allowance - other. The ATO recommends the allowance description should be stated as ND non-deductible
Allowance – cents per km – for vehicles other than a car such as a motorbike or van. Allowance - other. The ATO recommends the allowance description should be stated as V1 Private vehicle
Allowance – confined spaces Allowance - tasks
Allowance – danger Allowance - tasks
Allowance – dirt Allowance - tasks
Allowance – district Allowance - tasks
Allowance – driving licence Allowance - qualifications/certificates
Allowance – equipment – where equipment is supplied by employee for business purposes Allowance - tool
Allowance – first aid Allowance - tasks
Allowance – freezer Allowance - tasks
Allowance – height Allowance - tasks
Allowance – higher duties Allowance - tasks
Allowance – home office equipment Allowance - other. The ATO recommends the allowance description should be stated as H1 Home office
Allowance – industry Allowance - tasks
Allowance – internet Allowance - other. The ATO recommends the allowance description should be stated as H1 Home office
Allowance – laundry – for cleaning of approved uniforms in excess of the ATO approved limit Allowance - laundry
Allowance – laundry – for cleaning of approved uniforms up to the ATO approved limit Allowance - laundry
Allowance – laundry – for the cost of laundering deductible conventional clothing Allowance - other. The ATO recommends the allowance description should be stated as G1 General
Allowance – laundry – for the cost of laundering uniforms for private purposes Allowance - other. The ATO recommends the allowance description should be stated as ND Non-deductible
Allowance – leading hand Allowance - tasks
Allowance – liquor licence Allowance - qualifications/certificates
Allowance – living away from home (FBT) Exclude from payment summary (income statement) – but may form part of RFBA
Allowance – locality Allowance - tasks
Allowance – loss of licence Allowance - qualifications/certificates
Allowance – domestic meals and incidentals where amount does not exceed ATO reasonable amount Exclude from payment summary (income statement)
Allowance – domestic meals and incidentals where amount exceeds ATO reasonable amount Allowance - travel
Allowance – overseas meals and incidentals where amount exceeds ATO reasonable amount Allowance - travel
Allowance – on call – ordinary hours Allowance - tasks
Allowance – on call – outside ordinary hours Overtime
Allowance – overtime meals where amount does not exceed the ATO reasonable amount Exclude from payment summary (income statement)
Allowance – overtime meals where amount exceeds the ATO reasonable amount Allowance - overtime meal
Allowance: Mobile phone/ laptops

Allowance: Other. These allowances may belong in one of the following specific allowance categories depending on the purpose of the allowance.

Option one, if you require the employee to supply their own laptop or mobile phone for work, report as Tool Allowance - Allowance type TD.

Option two, if the employee uses their own laptop because they are working from home, report as Other Allowance - Allowance type OD with the allowance code H1.

Allowance – recognition of skill level Allowance - tasks
Allowance – secondment Allowance - tasks
Allowance – site Allowance - tasks
Allowance – supervisor Allowance - tasks
Allowance – tools of trade Allowance - tool
Allowance – transport – for private purposes Allowance - other. The ATO recommends the allowance description should be stated as ND Non-deductible
Allowance – transport – payments for the cost of transport for business related travel traceable to a historical award in force on 29 October 1986 Allowance - award transport payments
Allowance – transport – payments for the cost of transport for business related travel not traceable to a historical award in force on 29 October 1986 Allowance - other. The ATO recommends the allowance description should be stated as T1 Fares
Allowance – travel – for private purposes Allowance - other. The ATO recommends the allowance description should be stated as ND Non-deductible
Allowance – travel – part day Allowance - other. The ATO recommends the allowance description should be stated as ND Non-deductible
Allowance – travel time – ordinary hours Default
Allowance – travel time – outside ordinary hours Overtime
Allowance – wet weather Allowance - tasks
Allowance – working with children check Allowance - qualifications/certificates
Back pay – total is below Lump sum E threshold The payment type that matches the payment.

 

For example, back pay of ordinary pay = Default, back pay of higher duties allowance = Allowance - tasks

Back pay – accrued less than 12 months before date of payment The payment type that matches the payment.

 

For example, back pay of ordinary pay = Default, back pay of higher duties allowance = Allowance - tasks

Back pay – accrued more than 12 months before date of payment Lump sum E
Bonus – Christmas Bonuses and commissions
Bonus – ex-gratia, in respect of ordinary hours of work Bonuses and commissions
Bonus – paid to employee that has resigned to encourage withdrawal of resignation Return to work payment
Bonus – paid to end industrial action Return to work payment
Bonus – paid to ex-employee to return Return to work payment
Bonus – performance Bonuses and commissions
Bonus – referral Bonuses and commissions
Bonus – relating entirely to time worked outside ordinary hours Overtime
Bonus – retention Bonuses and commissions
Bonus – sign-on Bonuses and commissions
Breach of rest break payment Default
Call back payment Overtime
Commission Bonuses and commissions
Directors’ fees – working or non-working director Directors’ fees
Flexi time – hours worked and taken Default

 

The next section is a reference list for leave-related pay categories and appropriate payment classifications.

Leave type Pay category payment classification
Identifiable overtime component of annualised salary Overtime
Leave – annual – cashed out in service Leave - cash out of leave in service
Leave – annual – taken Leave - other paid leave
Leave – bereavement Leave - other paid leave
Leave – carer’s Leave - other paid leave
Leave – community service Leave - ancillary and defence leave
Leave – compassionate Leave - other paid leave
Leave – defence Leave - ancillary and defence leave
Leave – domestic violence Leave - other paid leave
Leave – family Leave - other paid leave
Leave – firefighting service Leave - ancillary and defence leave
Leave – gardening Leave - other paid leave
Leave – jury duty Leave - ancillary and defence leave
Leave – long service – cashed out in service Leave - cash out of leave in service
Leave – long service – taken Leave - other paid leave
Leave – parental – employer paid Leave - paid parental leave
Leave – parental – government paid (GPPL) Leave - paid parental leave
Leave – personal – cashed out in service Leave - cash out of leave in service
Leave – personal – taken Leave - other paid leave
Leave – RSPCA Leave - ancillary and defence leave
Leave – sick Leave - other paid leave
Leave – State Emergency Service (SES) Leave - ancillary and defence leave
Leave – study Leave - other paid leave
Leave – paid on termination – annual leave or leave loading accrued after 17 August 1993 paid on a normal termination Leave - unused leave on termination
Leave – paid on termination – long service leave accrued after 17 August 1993 paid on a normal termination Leave - unused leave on termination
Leave – paid on termination – annual leave or leave loading accrued after 17 August 1993, termination for genuine redundancy, invalidity or early retirement scheme reasons Lump Sum A (Type R)
Leave – paid on termination – unused annual leave or leave loading paid on termination that accrued before 17 August 1993 Lump Sum A (Type T)
Leave – paid on termination – long service leave that accrued between 16 August 1978 and 17 August 1993. Lump Sum A (Type T)
Leave – paid on termination – long service leave that accrued before 16 August 1978 Lump Sum B
Loadings – annual leave loading (demonstrably referable to a loss of overtime) Overtime
Loadings – annual leave loading (standard) Leave - other paid leave
Loadings – casual loading Default
Ordinary hours Default
Overtime Overtime
Penalties – public holiday Default
Penalties – shift Default
Public holiday – day not worked Report as if the employee had worked (Default and any other relevant payment types)
Rostered day off (RDO) – hours cashed out in service Leave - cash out of leave in service
Rostered day off (RDO) – hours taken Leave - other paid leave
Time off in lieu (TOIL) – hours taken Leave - other paid leave
Time off in lieu (TOIL) – hours cashed out in service Overtime
Travel time – Excess, for travel outside ordinary hours Overtime
Workers’ compensation – no work is performed Leave - worker's compensation
Workers’ compensation – paid after termination Leave - worker's compensation
Workers’ compensation – top-up, no work is performed Leave - worker's compensation
Workers’ compensation – top-up, work is performed Default
Workers’ compensation – work is performed Default

Please note: Each classification will have a short version that may be used in back-end reporting, depending on the number of characters allowed in a specific field, e.g.  Allowance (Car) is the short-form description for Allowance - cents per km. The short version will still report correctly as long as the Pay category payment classification has been updated as per the above.

If you have any questions or feedback, please let us know via support@yourpayroll.com.au.

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