e-PayDay® Version 21
June / 25 / 2009
e-PayDay® Version 21 released on the 25 June 2009.
Version 21 contains several important ATO related reporting changes as detailed below;
Exempt Foreign Employment Income / Other Income Removal
In the past the ATO required reporting of 'Other Income' (which included Foreign Source income). This information is on longer reported to the ATO. The ATO now requests 'Exempt Foreign employment income' be reported.
The old Pay Rate Type was 'Other Income (Foreign Source, Scholarships, Bursaries, Grants, Awards) (Taxable or exempt - check with ATO)' which is no longer used, whereas the new Pay Rate Type is 'Exempt foreign employment income (Not Taxed, Reportable to ATO)' which will effectively replace the old pay rate type.
You will need to update any Pay Rates to use the new Pay Rate Type, other and error message will be displayed when you attempt to setup a payslip for processing.
Example of Old Unused Pay Type
Example of New Pay Type
Example of Error message
Union / Professional association fees
There is a small change in that the 'Union' checkbox has been renamed to Union/Professional association' in the Pay Type section. This deduction is now reported as a seperate item on the payment summary, whereas it used to be included in the Deductions listing.
Workplace giving
Workplace giving has changed in that you need to check the 'Workplace Giving' checkbox. In the past the 'Report to' dropdown had to be changed to 'Workplace Giving', but if only the 'Report to' dropdown is set then the deduction WILL NOT be reported as a Workplace Giving. This deduction is reported item on the payment summary.
Example of Workplace Giving Pay Type
Lump Sum A Payment Type
When a Lump Sum A Payment is made you need to enter what the Payment Type is. Valid values are :-
'R' - where payment was for a genuine redundancy, invalidity or under an early retirement scheme.
'T' - where payment was not a payment for a genuine redundancy, invalidity or under an early retirement scheme.
When create a payslip with a Lump Sum A Payment you will be prompted to enter the Payment Type.
Reportable Employer Superannuation Contributions
The ATO now requires reporting of certain Superannuation Contributions. §Reportable employer superannuation contributions are employer contributions made in a financial year (1 July to 30 June) to a superannuation fund for an employee. They are the portion of the employer contribution that the employee has influenced, for example superannuation contributions made by the employer under the terms of a salary sacrifice agreement.§
When setting up a deduction tick the 'Superannuation' checkbox. A new checkbox 'Report to ATO' will become visible. If this box is checked then this deduction payment will be reported to the ATO as a Reportable employer superannuation contirbution. If the 'Salary Sacrifice (Deduct BEFORE Tax is calculated)' checkbox is checked and the 'Superannuation' checkbox is checked. The 'Report to ATO' checkbox will be locked and checked.
Example of Salary Sacrifice Superannuation Contribution
Example of Non-Salary Sacrifice Superannuation Contribution
Please do not contact e-PayDay to ask for advice about Reportable Employer Superannuation Contributions. We can only help in setting up the Pay Types. e-PayDay Pty Ltd is not registered tax agent and can not give advice regarding which Superannuation Contributions should or should not be reported to the ATO.
Final Notes
All of the above mentioned values can be changed in the updated Employee Balances form. Please refer to online help for more information about the Employee Balances Form.
Employee Balances Form
§ This text was extracted from the ATO document 'Pay as you go (PAYG) withholding payment summary annual report version 9.0', dated April 2009.
These changes have been implemented so that e-PayDay is ATO compliant. Please refer to the ATO website for information regarding these changes.
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