An ATO Reporting Category is required for each superannuation payroll category. The ATO reporting categories you can choose from is based on the superannuation Contribution Type.

Here's the available ATO reporting categories for superannuation.

The ATO Reporting Category for the PAYG Withholding payroll category can only be set to PAYG Withholding.

This category reports all tax withheld from the employee, including any extra PAYG that may be deducted.

1. Go to the Payroll command centre and click Payroll Reporting.

2. Click Check Payroll Details. Employees paid in the current payroll year (including terminated employees) are included in the payroll check. You'll see a list of payroll categories you need to fix before you can connect to the ATO and start reporting using Single Touch Payroll.
   

3. Click the arrow next to a payroll category in the errors list. The payroll category Information window appears.
4. Choose the appropriate category from the ATO Reporting Category list. See above for information to help you select it, or speak to your accounting advisor or the ATO.
5. Click OK.
6. Repeat for all other payroll categories listed in the Check Payroll Details window.
7. Click Check Payroll Details to refresh the list.

Which payroll categories are not reportable?

In most cases, payroll categories that don't need to be included on an employee's tax return, are not reportable. Depending on your circumstances. this may include payroll categories for post-tax deductions and deductions that are exempt from fringe benefits tax. For example, loan or car payments

If you're not sure what reporting category to assign, talk to your accounting advisor or the ATO.

How do I assign salary sacrifice superannuation?

When reporting payroll amounts using Single Touch Payroll, gross wage amounts are reduced automatically by deduction amounts that are marked as a before-tax deductions. This includes salary sacrifice superannuation deductions.

Previously, to reduce taxable gross amount on payment summaries, you needed to assign the relevant payroll category (for example, salary sacrifice) to gross payments. You don't need to do this for single touch payroll reporting.

• For STP Phase 1 the ATO reporting category Reportable Employer Super Contributions can be used for Salary Sacrifice (deduction) superannuation categories.
• For STP Phase 2 the ATO reporting category Salary Sacrifice can be used for Salary Sacrifice (deduction) superannuation categories.

If you're not sure what reporting category to assign, talk to your accounting advisor or the ATO.

Why can't I choose an ATO reporting category for a payroll category?

Some payroll categories that exist in AccountRight by default, like Superannuation Guarantee, have the ATO reporting category set for you and cannot be changed. This ensures those critical payroll categories are reported correctly to the ATO.

What are the types of lump sum payments?

Here's a brief description of each type of lump sum payment. For more details, or to clarify if a payment you're making is a lump sum, check with your accounting advisor or visit the ATO website.

Where can I see a list of assigned ATO reporting categories?

When you view your list of payroll categories (Payroll > Payroll Categories), you'll see which ATO reporting categories have been assigned on the Wages, Superannuation and Deductions tabs.

This is a handy way to see if any ATO reporting categories are yet to be assigned.

Where do I assign an employee's income type?

To be compliant with the ATO's rules for STP Phase 2, you need to assign each of your employees an income type (Card File command centre > Cards List > Employee tab > open the employee's card > Payroll Details tab > Taxes section > Income Type).

The available choices are Salary and wages, Closely held payees, Working holiday maker, Seasonal worker program or Labour hire. If you're not sure what to choose, check with your accounting advisor or the ATO.

If you choose Working holiday maker, you also need to choose the employee's Country of origin.

Single Touch Payroll (STP) Phase 2 is an expansion of the ATO's payroll reporting system, and it started on 1 January 2022.

You'll see whether you're reporting on STP Phase 1 or Phase 2 in the STP reporting centre (Payroll command centre > Payroll Reporting > Payroll Reporting Centre > STP reports tab). How do I move to STP Phase 2?