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AccountRight Plus and Premier, Australia only

You need to assign an ATO reporting category to each of the payroll categories you use. This lets the ATO know how to treat each type of payment you're reporting through Single Touch Payroll (STP).

Get ready for

STP Phase 2

STP Phase 2 is the ATO's expansion of their payroll reporting requirements. This includes expanding the list of ATO reporting categories to better define the amounts paid to employees. For example, the ATO reporting category Gross payments is being  has been split into more specific payment types, like overtime and bonuses.

To learn more about STP Phase 2, visit the ATO website.The current list of ATO reporting categories will apply until STP Phase 2 begins. But you or your bookkeeper can start assigning the new

If you set up STP recently, you'll likely be set up for STP Phase 2. You'll know you're on STP Phase 2 if your payroll categories only have one ATO reporting category field (you won't see the "STP Phase 2 is coming" message shown below).

If you're still on STP Phase 1 you'll be prompted to move to STP Phase 2 in the coming months. Until then, you or your accounting advisor can assign the STP Phase 2 ATO reporting categories in preparation for the change. This will reduce the stress of the transition by assigning the new categories over the next few monthsgetting a headstart. Learn more about getting ready for STP Phase 2.

Which ATO reporting category should I assign?

As your business, award and employee agreement are unique, we can't tell you which ATO reporting categories you should assign to your payroll categories.

However, you can use the descriptions of reporting categories below to guide you.

For additional information and advice:

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About Single Touch Payroll reporting

Setting up Single Touch Payroll reporting

Task 1 - Check payroll details  

Task 2 - Connect to the ATO

Payroll categories

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UI Expand
titleSuperannuation

The An ATO Reporting Category is automatically assigned for superannuation categories set up with the following Contribution Types :

  • Superannuation Guarantee (expense)
  • Employee Additional (deduction)
  • Redundancy (expense)
  • Spouse (deduction)

reporting category is required for each Contribution type:

Image Modified

ATO reporting category (Phase 1)ATO reporting category (Phase 2)More information

Superannuation Guarantee

Superannuation Guarantee

This information is reported to the ATO to

check

ensure that employee super funds are receiving the correct amounts.

Reportable Employer Super Contributions
 

Superannuation Guarantee and RESC Image Added

Use this to assign superannuation guarantee payroll categories where contributions are above the mandatory 10%, and the portion above 10% is reportable according to the ATO guidelines)
Reportable Employer Super Contributions
Use this
N/A

STP Phase 1 only

This was used to assign superannuation payroll categories which

handle

handled 'reportable' superannuation payments (as classified by the ATO guidelines).

Note that this option only

appears

appeared for Employer Additional (expense)

,

and Salary Sacrifice (deduction) contribution types.

 

Salary Sacrifice and RESC Image Modified

Use this to assign salary sacrifice super payroll categories. These are classified by the ATO as reportable employer super contributions (RESC)).
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titleDeductions
ATO reporting category (Phase 1)ATO reporting category (Phase 2)DescriptionATO reference

Deduction - Work Place Giving

Deduction - Work Place GivingAssign payroll categories that are donations made under a workplace giving arrangement.Workplace giving programs

Deduction - Union/Professional Assoc Fees

Deduction - Union/Professional Assoc Fees

This might include payroll categories for:

  • union fees
  • memberships to professional associations.
Union fees, subscriptions to associations and bargaining agents fees
ETP - Tax WithholdingETP - Tax WithholdingUse this reporting category when an ETP has been made to an employee.Taxation of termination payments
 

Salary sacrifice - other employee benefits

For deductions that are for benefits from an effective salary sacrifice arrangement, including those exempt from FBT.Salary sacrifice arrangements
Not Reportable 

All other deductions are usually considered not reportable. This includes payroll categories like loan or car payments. This is because they may not need to be itemised on an employee's tax return.

If you're not sure if a deduction is reportable, check with your accounting advisor or the ATO.

 

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