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  • Other components of your STP reporting

    There are components you need to report through STP that influence the amount you pay to an employee but relate to the employee themselves rather than the kind of payment they are receiving.

    For these components, you don't need to include an income type or country code in your STP report.

    These components are:

    Deductions

    The reporting of deductions does not change under STP Phase 2.

    There are 2 deduction types you can report:

    • union and professional association fees (deduction type F)
    • workplace giving (deduction type W).

    Union and professional association fees (deduction type F)

    You should only report union fees and professional association fees deducted from payroll as Deduction type F.

    No other post-tax deductions can be reported as Deduction type F.

    Workplace giving (deduction type W)

    When an employee has asked you to collect money from their pay to donate, you may have set it up as a:

    • salary sacrifice arrangement
    • workplace giving deduction.

    You should only report workplace giving deductions as deduction type W. Don't include salary sacrifice contributions to a charity. These are reported as Salary Sacrifice Type O (other employee benefits).

    The workplace giving deductions you report as deduction type W include:

    • where you have established a workplace giving program in accordance with ATO guidelines and you have chosen  
    • where you have not established a formal workplace giving program but make a post-tax deduction from the employee's pay to donate to their nominated Deductible Gift Recipient (DGR).

    Child support reporting

    You may voluntarily choose to report your Child support deductions and Child support garnishees if your solution offers this functionality.

    • A child support deduction is a deduction from the employee’s pay made under a notice that is issued under section 45 of the Child Support (Registration and Collection) Act 1988. It requires an employer to deduct a fixed dollar amount each pay period and is subject to a protected earnings amountExternal Link. You should report these amounts in your STP report as deduction type D.
    • A child support garnishee is a deduction from the employee’s pay made under a notice that is issued under section 72A of the Child Support (Registration and Collection) Act 1988. It requires an employer to deduct a percentage of the employee’s income, a lump sum, or a fixed amount each pay. You should report these amounts in your STP report as deduction type G.

    If you report child support deduction or garnishee amounts, you may not need to separately report those amounts to the Child Support Registrar. However, you must still pay the required amounts directly to them by the date specified in your notice. If the amount varies from what was requested the Child Support Registrar needs to know why and you should contact Services AustraliaExternal Link.

    Starting to report child support amounts through STP

    There are some things you need to do before you can report child support amounts through STP.

    • When you lodge your first STP report that includes child support deductions, you still need to send the Child Support Registrar a child support deductions report form CS4964 using your preferred child support reporting channel. This is so the Child Support Registrar can work out your pay period Child support deduction amounts from your YTD amounts going forward.
    • The information you include with your payment, such as your payment reference number, may also change when you start reporting Child support deduction and support garnishee amounts. You should contact Services AustraliaExternal Link to confirm your payment details with them.
    • Special rules apply if you are making corrections to garnishee or deduction amounts.

    If your payroll solution doesn’t offer functionality to report child support amounts, or you choose not to, you will still need to report directly to the Child Support Registrar using your existing reporting channel.

    If you need assistance with reporting child support deduction or garnishee amounts, contact Services AustraliaExternal Link.

    Reportable employer super contributions and reportable fringe benefit amounts

    The reporting rules for RFBA and RESC have not changed with STP Phase 2.

    How to report RESC and RFBA through STP

    You only report RFBA amounts if the total taxable value of certain fringe benefits you provided to your employee exceeds $2,000 for the FBT year (1 April – 31 March).

    If you choose to report this information, you may provide YTD RFBA and RESC either:

    • through a pay event (if the information is available in payroll) throughout the financial year, or
    • through an update event throughout the financial year.

    This can be at any time up until the due date to make the declaration that you have finalised your reporting for that employee for the financial year.

    Once you’ve reported an amount, you should continue to report the amount in all following pay events, even if the YTD amounts remain the same.

    If you can't (or choose not to) provide RFBA or RESC through STP, you must provide this information on a payment summary to the employee and provide us with a payment summary annual report. The payment summary must not include amounts reported through STP.

    Relationship between reporting RESC and RFBA, and salary sacrifice amounts

    Often the amounts you report as salary sacrifice super (salary sacrifice type S) are also considered reportable employer super contributions (RESC). However, there are other contributions you may make to super for an employee that are RESC but not salary sacrificed.

    Similarly, reportable fringe benefits amounts (RFBA) may be related to the amounts you report as salary sacrifice other benefits (salary sacrifice type O) but can differ because:

    • benefits an employee receives from salary sacrificing may not also be RFBA
    • benefits an employee receives may be RFBA but were not obtained from salary sacrificing
    • actions, such as employee contributions, may change the value of RFBA relative to the salary sacrifice.

    When reporting RESC and RFBA through STP, you need to ensure you understand the relationship between reporting RESC and salary sacrifice type S, and the relationship between reporting RFBA and salary sacrifice type O so that you can report correctly.

    Example 1: RESC and salary sacrifice type S

    Jackie earns $60,000 per annum. During the employment process she negotiated an extra 2% ($1,200) super above the super guarantee (SG) rate. Because Jackie negotiated with her employer to pay extra super this must be reported as RESC.

    Jackie has also decided to salary sacrifice $10,000 into super.

    This is reported in STP Phase 2 as:

    • Gross $60,000
    • Salary sacrifice type S (super): $10,000
    • RESC $11,200.

    The RESC value is higher than the salary sacrifice type S because it includes:

    • the salary sacrifice amount of $10,000
    • the extra $1,200 of employer super she negotiated.
    End of example

     

    Example 2: RFBA and salary sacrifice type O

    Ross earns $80,000 per annum. Instead of carrying his heavy laptop, he has decided to salary sacrifice a tablet worth $2,000 which will be primarily used for work purposes.

    This is reported in STP Phase 2 as:

    • Gross $80,000
    • Salary sacrifice type O (other employee benefits): $2,000
    • RFBA $0.

    The tablet is reported as Salary sacrifice type O because all salary sacrifice items are reported in STP Phase 2. However, because the tablet is being used primarily for work purposes it is not subject to FBT, so is not reported as RFBA.

    End of example

    Reporting super

    You must include information about your employees’ super entitlements.

    You must continue to report and pay your employees' super entitlements through your existing SuperStream solution (including the Small Business Superannuation Clearing House). This has not changed with STP Phase 2.

    You must report either:

    • your YTD employer super liability for each employee in the STP report (super type L)
    • the YTD ordinary time earnings (OTE) for each employee in the STP report (super type O).

    If your payroll solution allows you can also report both.

    There are some circumstances where it may not be clear what to report such as where your:

    • YTD employer super liability or your employee’s OTE is zero – report zero
    • employees are entitled to receive super contributions above the minimum super guarantee (SG) liability – report this higher amount if you can't separately identify these in your payroll solution
    • employee is a member of a defined benefit fund and you make super contributions for the employee – report this amount if it is available in your payroll system. This would usually correspond to the YTD amount shown on the employee’s payslip. Otherwise, report zero as the super liability amount.

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    Last modified: 03 Jun 2022QC 66099