• PAYG payment summary – foreign employment

    Use this form to provide details of payments made to Australian resident payees for their work performed:

    • overseas
    • in the Joint Petroleum Development Area (JPDA).

    Foreign earnings that do not meet any of the conditions to be exempt are assessable income and subject to the PAYG withholding requirements.

    Next steps:

    If your payee:

    See also:

    How to obtain this form

    To obtain a printed copy of the form:

    See also:

    How to complete this form

    You must:

    • print clearly using a black pen
    • use BLOCK LETTERS and print one character per box.

    You do not have to complete every field. For example, where an amount has not been paid or withheld, leave those boxes blank.

    Show all amounts in whole dollars – do not show cents. For example, show an amount of $122.76 as $122.

    Send the ATO original payment summary to us as part of your PAYG withholding payment summary annual report. We cannot accept photocopies or duplicates.

    Avoiding common errors

    Common errors and correct actions

    Error

    Correct action

    Do not include salary sacrificed amounts at Gross payments.

    Do not report salary-sacrificed amounts anywhere on the payment summary.

    Do not include amounts you paid as employment termination payments at Gross payments.

    Instead, report employment termination payments on a PAYG payment summary - employment termination payment (NAT 70868).

    Do not include cents at Reportable fringe benefit amount.

    Do not show cents at any label. Simply drop the cents from any amount before you enter it on the payment summary.

    Do not report negative amounts.

    To amend a previous year's payment summary, see Amending payment summaries

    Do not report amounts containing a decimal point.

    Do not report cents at any label. Drop the cents from any amount before you enter it on the payment summary.

    Do not provide a payment summary containing all zeros.

    If you have not paid the payee any withholding payments throughout the year, you do not need to give them a payment summary.

    At Payment summary for year ending 30 June, do not show the year as anything but a four digit figure.

    Show the year as a four digit figure. For example, show the year ending 30 June 2017 as 2017 and not 17.

    Section A: Payee details

    Tax file number

    You must show the tax file number (TFN) the payee quoted in this field. For example, show a nine-character TFN as:

    Example of the completed 'Tax file number' field on the form

    To help us process your form, you must substitute the TFN with the numbers listed below if the following applies:

    • a new payee has not made a TFN declaration, but 28 days have not passed – use 111 111 111
    • the payee is under 18 and earnings do not exceed $350 per week, $700 per fortnight or $1,517 per month – use 333 333 333
    • the payee is an Australian Government pensioner payee – use 444 444 444
    • the payee chose not to quote a TFN and has not claimed an exemption from quoting a TFN or does not fit into any of the above categories – use 000 000 000.

    Name

    Separate the surname or family name from the given names and print in the appropriate boxes.

    For example, show Jane Mary Covers as:

    Example of the completed 'Name' fields on the form

    Residential address

    You must show the street number and name, suburb/town/locality, state or territory and postcode separately in the boxes provided.

    For example, show the address 2 Bell St, Ablem WA 6999 as:

    Example of the completed 'Residential address' fields on the form

    Date of birth (if known)

    Provide this information if you have it.

    Use the format DDMMYYYY, for example:

    Example of the completed 'Date of birth' field on the form

    Section B: Payment details 

    Period during which payments were made

    Show the period during which the payments were made to the payee.

    Use the format DDMMYYYY.

    For example, show the period 25 September 2014 to 4 January 2015 as:

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

    If the payee was employed on a casual basis during the year, write the period of the year the payments were made over. If the payee worked on a casual basis 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 the payee has been employed by you for the entire 2014–15 year, show the period as 1 July 2014 to 30 June 2015.

    Total Australian 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 on the form

    Gross payments

    The gross payments amount is the assessable foreign employment income. For this payment summary it also includes total allowances.

    Show the gross payments in whole dollars.

    For example, show a gross payment of $46,844.76 as:

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

    Do not include amounts that are shown separately as:

    • reportable fringe benefit amounts
    • reportable employer superannuation contributions
    • lump sum payments.

    For this payment summary, allowances must be included in Gross payments.

    Type

    Insert the relevant income type in this field:

    • F – foreign employment income
    • J – income earned for work conducted in the Joint Petroleum Development Area (JPDA)

    Foreign tax paid

    Include all foreign tax withheld from:

    • foreign employment income
    • income earned for work in the Joint Petroleum Development Area (JPDA).

    See also:

    Reportable fringe benefit amount

    Do not complete this section if you also provide a PAYG payment summary – individual non-business (NAT 0046, PDF, 292KB)This link will download a file to the same payee for the same financial year. All reportable fringe benefit amounts will be included on that form.

    Complete this section if the total taxable value of certain fringe benefits you provided to the payee in the FBT year (1 April to 31 March) exceeds $2,000 and you are not providing a PAYG payment summary – individual non-business (NAT 0046, PDF, 292KB)This link will download a file to the employee.

    You must record the total grossed-up taxable value of those benefits on the payee's payment summary for the income year that corresponds with the reportable fringe benefit amount.

    Do not include cents in this amount.

    For example, show a reportable fringe benefit amount of $4,178.85 as:

    Example of the completed 'Reportable fringe benefit amount' field of the form

    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.

    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 on the form

    Lump sum A

    Amounts you paid for unused:

    • long service leave that accrued after 15 August 1978 but before 18 August 1993
    • holiday pay and other leave-related payments that accrued before 18 August 1993
    • long service leave accrued after 17 August 1993 or unused holiday pay and other leave related payments, where the amount includes a genuine redundancy payment, an early retirement scheme payment or the invalidity segment of an employment termination payment or superannuation benefit.

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

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

    • R – if the payment was made for 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.

    Lump sum D

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

    Do not complete this label if you also provide a PAYG payment summary - individual non-business (NAT 0046) to the same payee for the same financial year. All lump sum payment D amounts will be included on that form.

    Lump sum E

    Amounts you paid for back payment of salary and wages from foreign employment 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 employment termination payments. You must complete a separate PAYG payment summary – employment termination payment (NAT 70868) for employment termination payments.

    See also:

    Reportable employer superannuation contributions

    Do not complete this section if you also provide a PAYG payment summary – individual non-business (NAT 0046) to the same payee for the same financial year. All reportable employer superannuation contributions will be included on that form.

    Complete this section if you paid employer contributions to a superannuation fund at the request of the employee and did not provide a PAYG payment summary - individual non-business (NAT 0046). This includes amounts paid at the direction of the employee under a salary sacrifice or similar arrangement, but not contributions that are made by you to meet your superannuation guarantee obligations or industrial agreement obligations in respect of the employee.

    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:

    Union or professional association fees

    Do not complete this section if you also provide a PAYG payment summary – individual non-business (NAT 0046) to the same payee for the same financial year. All union or professional association fees will be included on that form.

    You must show amounts you paid to unions or professional associations on behalf of the payee in these fields.

    For example, show an amount of $867 to XYZ Union as:

    Example of the completed 'Union or professional association fees' field on 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 the payee a list showing the nature and amount of each payment.

    You must include these amounts in Gross payments.

    Workplace giving

    Do not complete this section if you also provide a PAYG payment summary – individual non-business (NAT 0046) to the same payee for the same financial year. All workplace giving deductions will be included on that form.

    Show amounts you paid to deductible gift recipients on behalf of the payee here.

    For example, show an amount of $532 to ABC Charity as:

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

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

    You must include these amounts in Gross payments.

    Section C: Payer details

    Australian business number (ABN) or withholding payer number (WPN)

    As a payer, you must have either an ABN or WPN.

    Show your ABN or WPN as it appears on your activity statement.

    For example, show an ABN of 12 345 678 912 as:

     Example of the completed 'ABN or WPN' fields on the form

    Branch number

    If a business has one ABN but multiple branches, each branch will have an individual branch number. Show your branch number in the boxes provided. If you do not have a branch number, leave the boxes blank.

    Name

    Show your name as it appears on your activity statement.

    For example, show ABC Pty Ltd as:

    Example of the completed 'Name' field on the form

    Declaration

    Only you as the payer, or a person authorised to sign on your behalf, can sign this form. Print the name of the person authorised to sign the form. You must keep details of the authorised person with your records.

    After you complete this form

    You must do all of the following:

    • give the payee their copy of this payment summary by 14 July following the end of the financial year you made payments to them in – however, if the payee requests a payment summary from you in writing prior to 9 June, you must provide the payment summary to them within 14 days of receiving their request
    • send us the ATO original copies of the PAYG payment summaries along with your PAYG payment summary statement as part of your PAYG withholding payment summary annual report by 14 August, following the end of the financial year – the postal address is on the PAYG payment summary statement
    • keep the payer copy for five years.

    Do not send us payment summaries printed from your payroll software. You must send us the ATO originals.

    Lodging your payment summary information online

    If you have an AUSkey and your payroll software meets our specifications, you can submit your payment summary information to us online using the Business Portal. It is a quick and secure way for you to meet your lodgment obligations. To lodge online you will need an AUSkey.

    See also:

    Amending payment summaries

    You cannot change the information on a payment summary after you have either:

    • given it to the payee
    • provided your PAYG withholding payment summary annual report to us.

    If you find a mistake after giving the payment summary to the payee or us, we recommend you complete a new payment summary, marking the amending a payment summary box as shown:

     Example of the completed 'amending a payment summary' field on the form

    When you complete amended payment summaries, you must:

    • complete all payee, payment and payer information on each amended payment summary
    • send it to us
    • give a copy to your payee.

    You must show the payee and payer information as it was on the original payment summary. You must send the ATO original to

    Australian Taxation Office
    Locked Bag 50
    PENRITH NSW 2740

    You may also need to complete and send us an amended PAYG payment summary statement (NAT 3447).

    If only the payee or payer information was incorrect, do not prepare a new payment summary. Instead, advise the payee as soon as possible. Document the correct details and keep them in your files – there is no need to advise us of the corrected details.

    You must also give a copy of the letter to the payee.

    Where payment amounts or tax withheld amounts have changed, you may also need to complete an amended PAYG payment summary statement (NAT 3447).

    If the payee loses their payment summary, do not issue a new one. Give them a photocopy of your own copy showing all the details from the lost payment summary.

    Last modified: 06 Oct 2017QC 22557