End-of-year reporting

You must record back payments on your employee’s payment summary, or in a pay event when reporting under Single Touch Payroll. What payment summary you use depends on whether the back payments relate to a superannuation income stream or previous period of assessable foreign service. Use:

• PAYG payment summary – individual non-business for all back payments except those for super income streams or if they were related to a previous period of assessable foreign service
• PAYG payment summary – superannuation income stream for super income stream payments
• PAYG payment summary – foreign employment for payments related to a previous period of assessable foreign service.

For more information about payment summaries, refer to PAYG payment summaries: forms and guidelines. For more information about Single Touch Payroll, and what can and cannot be reported, refer to Single Touch Payroll employer reporting guidelines – What you need to report.

Completing the individual non-business payment summary

For payments accrued in the current financial year, include the total:

• gross amount of all payments at ‘Gross payments’
• amount withheld at ‘Total tax withheld’.

Salary and wage income (including allowances) accrued before the current financial year

For each payment accrued in a prior financial year, but not more than 12 months before the date of payment include the total:

• gross amount of the payment at ‘Gross payments’ or 'Allowances'
• amount withheld at ‘Total tax withheld’.

For each payment accrued more than 12 months before the date of payment of less than $1,200, include the total:

• gross amount of the payment at ‘Gross payments’ or 'Allowances'
• amount withheld at ‘Total tax withheld’.

For each payment accrued more than 12 months before the date of payment of $1,200 or more, include the total:

• gross amount of the payment (including allowances) at ‘Lump sum E’
• amount withheld at ‘Total tax withheld’.

For each payment that accrued before and after 12 months, apportion the payment between the two periods. If the portion of the payment that accrued after 12 months from the date of payment is $1,200 or more, include the:

• gross amount of the payment at ‘Lump sum E’
• amount withheld at ‘Total tax withheld’.

Other amounts accrued before the current financial year

These other amounts are described in Other payments you should use this schedule for.

For each payment accrued in a prior financial year of less than $1,200, include the total:

• gross amount of the payment at ‘Gross payments’
• amount withheld at ‘Total tax withheld’.

For each payment accrued in a prior financial year of $1,200 or more, include the total:

• gross amount of the payment at ‘Lump sum E’
• amount withheld at ‘Total tax withheld’.

Employee letter

You must also provide your employee with a letter specifying:

• the financial years over which the amount accrued, and
• the gross amount that accrued each financial year.

Completing the superannuation income stream payment summary

For payments accrued in the current financial year, include:

• the component amounts at both  
  • ‘Taxable component’ (both taxed and untaxed elements if applicable)
  • ‘Tax-free component’
   
• the amount withheld at ‘Total tax withheld’.

For payments accrued prior to the current financial year, include:

• the component amounts at both  
  • ‘Lump sum in arrears – taxable component’ (both taxed and untaxed elements if applicable)
  • ‘Lump sum in arrears – tax-free component’
   
• the amount withheld at ‘Total tax withheld’.

Payee letter

You must also provide your payee with a letter specifying:

• the financial years over which the amount accrued, and
• the gross amount that accrued each financial year.

Completing the foreign employment payment summary

Note: For the foreign employment payment summary, the gross payments amount is assessable foreign employment income, which includes total allowances.

For salary and wage payments accrued in the current financial year, include the total:

• gross amount of all payments at ‘Gross payments’
• amount withheld and paid to a foreign tax jurisdiction (if applicable) at ‘Foreign tax paid’
• amount withheld for Australian tax purposes at ‘Total Australian tax withheld’.

For each salary and wage payment accrued in a prior financial year, but not more than 12 months before the date of payment, include the total:

• gross amount of the payment at ‘Gross payments’
• amount withheld and paid to a foreign tax jurisdiction (if applicable) at ‘Foreign tax paid’
• amount withheld for Australian tax purposes at ‘Total Australian tax withheld’.

For each salary and wage payment accrued more than 12 months before the date of payment of less than $1,200, include the total:

• gross amount of the payment at ‘Gross payments’
• amount withheld and paid to a foreign tax jurisdiction (if applicable) at ‘Foreign tax paid’
• amount withheld for Australian tax purposes at ‘Total Australian tax withheld’.

For each salary and wage payment accrued more than 12 months before the date of payment of $1,200 or more, include the total:

• gross amount of the payment at ‘Lump sum E’
• amount withheld and paid to a foreign tax jurisdiction (if applicable) at ‘Foreign tax paid’
• amount withheld for Australian tax purposes at ‘Total Australian tax withheld’.

Employee letter

You must also provide your employee with a letter specifying:

• the financial years over which the amount accrued, and
• the gross amount that accrued each financial year.