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It is important to note that how some payments are classified and reported for the purposes of STP reporting differs to how some payments are classified and reported on the standard payroll reports. That is because the STP reports take into consideration payees’ payee types/income types (i.e. Individual Non Business, Labour Hire, Company Contractor) according to ATO reporting requirements.

For example, consider the following:

For example, consider the following:

• Certain types of taxable allowances attract concessional tax treatment when paid to Individual Non Business payees and are therefore not included in the gross payments amount that is reported via STP; instead such allowances are itemised separately in STP reporting when paid to Individual Non Business payees. However, on the standard payroll reports, any taxable allowance is included in the overall gross earnings value.

• Tax withheld from lump sum payments and termination payments is reported separately in STP reporting compared to tax that is withheld from other types of payments. However, on the standard payroll reports, tax withholding amounts include tax withheld regardless of the payment type.

For more information about how payments and tax are reported on the standard payroll reports, see Payroll Reports