• Section B: Payment details

    Period during which payments were made

    Show the period during which the payments were made to your payee. Use the format DDMMYYYY – for example, show the period 25 September 2014 to 4 January 2015 as:

    Example of the completed 'Perods during which payments were made' fields of the form

    If your payee worked on a casual basis:

    • during the year, write the period of the year the payments were made over
    • over various times for the whole year, show the period as the whole financial year.

    You do not need to show the first and last pay dates for the financial year in this field. If your payee has been employed for the entire financial year, show the period as 1 July 2014 to 30 June 2015.

    Total tax withheld

    Show the total tax withheld in whole dollars – for example, show $12,672.70 as:

     Example of the completed 'Total tax withheld' field of the form

    Gross payments

    Include all salary, wages, bonuses and commissions you paid your payee as an employee, company director or office holder. Include the total gross amount before amounts are withheld.

    Gross payments also include:

    • non-super pensions and annuities
    • compensation
    • sickness or accident pay.

    Show the gross payments in whole dollars – for example, show a gross salary of $46,844.76 as:

     Example of the completed 'Gross payments' field of the form.

    Also include the following amounts:

    • allowances you paid to compensate for specific working conditions and payments for special qualifications or extended hours
    • allowances you paid to cover expenses that are not tax deductible to your payee – for example, normal home-to-work transport expenses
    • return-to-work payments
    • holiday pay or bonuses
    • amounts you paid for unused long service leave, unused holiday pay and other leave-related payments that accrued after 17 August 1993, except if the amount was paid in connection with a payment that includes (or consists of) either a genuine redundancy payment, early retirement scheme payment or invalidity segment of an employment termination payment, or super benefit (see lump sum payments).

    Do not include amounts that are shown separately as:

    • Community Development Employment Projects (CDEP) payments
    • allowances
    • lump sum payments
    • reportable fringe benefits amounts.

     Do not include amounts that have been salary sacrificed in gross payments

    Gross payment type

    Insert the payment type in this field:

    • P – non super pensions or annuity
    • H – working holiday makers

    Leave blank for all other payment types.

    Community Development Employment Projects payments

    This is the total you have paid to your payee from a CDEP wages grant. You must show this amount in whole dollars. Do not include this amount in gross payments.

    Reportable fringe benefits amount

    Complete this section if the total taxable value of certain fringe benefits you provided to your payee in the fringe benefits tax (FBT) year (1 April to 31 March) exceeds $2,000 for the FBT year.

    You must record the grossed-up taxable value of those benefits on your payee's payment summary for the financial year that corresponds with the reportable fringe benefits amount. Do not include cents in this amount – for example, show a reportable fringe benefits amount of $4,178.85 as:

     BUS21978Pic9

    Do not include this amount in Gross payments.

    See also:

    Is the employer exempt from FBT under section 57A of the FBTAA 1986?

    The Government has changed the way reportable fringe benefits amounts are treated for family assistance and youth income support payments. This in turn has changed how you show these benefits on your employees' payment summary forms.

    On the payment summary form, for the reportable fringe benefits amount entered, you will see a Yes and No indicator box as follows:

    Example of the field 'Is the employer exempt from FBT under section 57A of the FBTAA 1986?'.

    • Select Yes if you are eligible for exemption from fringe benefits tax (FBT) under section 57A of the Fringe Benefits Tax Assessment Act 1986 (FBTAA 1986) for the benefits provided as a:
      • registered public benevolent institution that is endorsed by the Commissioner of Taxation as eligible for exemption from FBT
      • government body and the employee's duties are exclusively performed in or in connection with  
        • a public hospital, or
        • a hospital carried on by a society or association that is a rebatable employer
         
      • registered health promotion charity that is endorsed by the Commissioner of Taxation as eligible for exemption from FBT, or
      • public ambulance service and the employee is predominantly involved in providing that service.
       

    If your organisation is one of these entities you should select Yes even if you provided the employee with fringe benefits in excess of the relevant capping threshold. See section 6.3 of Fringe benefits tax – a guide for employers for an explanation of the capping thresholds.

    Otherwise select No.

    If you do not have any reportable fringe benefits amount to report, leave both boxes blank.

    An employee may change roles within an organisation that is eligible for exemption under section 57A. For instance, an employee of a state health department may work as a nurse in a hospital (57A exempt duties) for part of the FBT year and, in an administration role at head office (non-exempt duties) for the remainder. If you have an employee who performs both exempt and non-exempt duties during the year while receiving reportable fringe benefits, you will have to provide two payment summaries.

    If the combined value of the exempt and non-exempt fringe benefits exceeds $2,000 in the FBT year, you must provide the grossed-up taxable value of each fringe benefit on a separate payment summary. On one payment summary you will show the section 57A exempt reportable fringe benefits amount and select Yes. On the other payment summary you will show the non-exempt reportable fringe benefits amount and select No.

    No more than two payment summaries are required, even if the employee has several periods of exempt and non-exempt service. Report all of the exempt amounts in one payment summary and all of the non-exempt amounts in a second payment summary.

    Reportable employer super contributions

    Complete this section if you paid employer contributions to a super fund at the request of the employee. This includes amounts paid at the direction of your payee under a salary sacrifice or similar arrangement. This does not include contributions that are made by you to meet your super guarantee obligations or industrial agreement obligations for your payee.

    What are reportable employer super contributions?

    Reportable employer super contributions are:

    • contributions made under a salary sacrifice agreement
    • additional amounts paid to an employee's super fund – for example, an annual bonus paid to super
    • employee-negotiated increases in super contributions as a part of their salary package – for example, under individual employment contracts.

    Reportable employer super contributions are not:

    • super guarantee contributions
    • compulsory super contributions required by the governing rules of a super fund or required by a state or territory law
    • employer super contributions made under a collectively negotiated industrial agreement.

    Reportable employer super contributions are not included in your payee's assessable income; however:

    • you must report them to us as part of your annual payment summary reporting
    • your payee must report them to us in their tax return.

    You must record the cash value of that part of the superannuation contribution on the payee's payment summary for the income year 1 July to 30 June.

    See also:

    Deductible amount of the undeducted purchase price (UPP) of pensions or annuities

    If you make payments of non-super annuities or pensions, there may be a deductible amount of the undeducted purchase price (UPP).

    The UPP is the amount the payee contributed towards the purchase price of their pension or annuity for which they did not claim, and were not eligible to claim, a tax deduction. The deductible amount is that part of the payee's annual pension or annuity income which represents a return to them of their personal contributions that is free from tax. You need to calculate the deductible amount and include it in this section.

    Lump sum payments

    Do not include any amount you show at a lump sum payment field in gross payments. You must show each lump sum payment as the appropriate payment type – for example:

     Example of the completed 'Lump sum payments' fields of the form

    There are four types of lump sum payments

    Payment type

    Explanation

    A

    Amounts you paid for:

    • unused long service leave that accrued after 15 August 1978, but before 18 August 1993
    • unused holiday pay and other leave-related payments that accrued before 18 August 1993
    • unused long service leave accrued after 17 August 1993 or unused holiday pay and other leave-related payments, where the amount was paid in connection with a payment that includes (or consists of) either        
      • a genuine redundancy payment
      • an early retirement scheme payment
      • the invalidity segment of an ETP or super benefit.
       

    For other amounts of unused leave accrued after 17 August 1993, see gross payments.

    If an amount has been included at Lump sum A, you must also complete the 'Type' box to show the circumstances the payment was made under. The only valid codes are:

    • R – if the payment was made for a genuine redundancy, invalidity or under an early retirement scheme
    • T – if the payment was made for any other reason.

    If there is no amount included at Lump sum A, do not complete the 'Type' box.

    B

    Amounts you paid for unused long service leave that accrued before 16 August 1978.

    D

    The tax-free component of a genuine redundancy payment or an early retirement scheme payment.

    E

    Amounts you paid for back payment of salary or wages that accrued more than 12 months ago or any return to work payments.

    You must include all amounts you withheld from lump sum payments in the total tax withheld.

    Do not include amounts for ETPs that were not rolled over. You must complete a separate payment summary for ETPs.

    See also:

    Exempt foreign employment income

    Income from foreign employment is exempt from tax if your payee meets certain conditions.

    See also:

    If the only income you have paid is exempt foreign employment income, you do not need to provide a payment summary.

    Allowances

    Allowances are payments you made to cover your payee's work-related expenses. For example, tool allowances and motor vehicle allowances (including car expense payments on a cents-per-kilometre basis).

    Briefly indicate the type of allowance. Where one or two allowances were paid, print them at each of the individual boxes.

    Do not include amounts you paid for living-away-from-home allowance because these amounts are not assessable income for your payee.

    For example, show two allowances as:

     BUS21978Pic11

    If you paid more than two allowances, print 'VARIOUS' and show the sum of the allowances you paid in the Total allowances field. Attach a note to your employee's payment summary showing the nature and amount of each allowance.

    You must show the total amount of all allowances you paid in the Total allowances field. Do not include these amounts in gross payments.

    See also:

    Union/professional association fees

    You must show amounts you paid to unions or professional associations on behalf of your payee in these fields. For example, show an amount of $867 to XYZ Union as:

     Example of the completed 'Union/professional association fees' field of the form

    If you have made payments to more than two unions or professional associations on behalf of the payee, print 'VARIOUS' in the Name of organisation boxes. You must give your payee a list showing the nature and amount of each payment.

    You must include these amounts in gross payments.

    Workplace giving

    Show amounts you paid to deductible gift recipients on behalf of your payee here – for example, show an amount of $532 to ABC Charity as:

     Example of the completed 'Workplace giving' field of the form.

    If you made payments to more than one deductible gift recipient on behalf of your payee, print 'VARIOUS' in the Name of organisation box. You must give your payee a list showing the nature and amount of each payment.

    You must include these amounts in Gross payments.

    Last modified: 06 Oct 2017QC 21978