When do I have to provide an employee with a PAYG payment summary - foreign employment?

You will need to provide this payment summary if the earnings are not exempt and any of the following conditions apply:

  • You have withheld and paid foreign tax to a foreign government on behalf of your employee.
  • Your employee is in any foreign country for a consecutive period of at least 60 days.
  • The earnings have a foreign source.

The period of 60 consecutive days commences at the time that the employee starts work in the foreign country. This period includes non-working days and will end if an employee returns to Australia.

Example 4

Kai is an accountant who goes to the USA to work with the parent company, but continues to be paid by his Australian employer. Kai's duties with the foreign country are unrelated to the work that he performs for his Australian employer. Kai works with the parent company from 22 February 2011 to 16 May 2011, and during this time returns to Australia for the period 20 April to 27 April 2011.

Although Kai is in the USA for more than 60 days, he is not there for a consecutive period of more than 60 days. Kai's Australian employer would only be required to report the earnings and amounts withheld on a PAYG payment summary - foreign employment (NAT 73297) if they determine that the earnings have a foreign source. Kai's employer determined that the earnings had a foreign source.

End of example

See also:

    Last modified: 01 Dec 2015QC 22115