STP Phase 2 introduces a greater level of granularity around reporting of payments. Paid leave is a particular area where there are complex rules around how a payment must be categorised for the purpose of reporting to the ATO.
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Under STP Phase 2 paid leave can be is required to be reported under any of the following categories depending on the type of leave being paid and whether the leave is paid when taken, cashed out during service or paid out on termination of employment:
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How does FastTrack360 recognise the type of leave being paid?
The Paid Leave type maintenance in the FastTrack360 Leave module will be enhanced so that any leave type that is assigned to the country of Australia will feature the ability to Type field in the header of the Leave > Maintenance > Leave Type > Edit Leave Type screen defines how …
Leave Types, which are configured in FastTrack360 under Leave > Maintenance > Leave Type
Leave type maintenance in the FastTrack360 Leave module will be enhanced so that any leave type that is assigned to the country of Australia will feature the ability to select, in the header of the leave type record, the paid leave type (P, W, A or O) to which that leave type record corresponds.
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Leave Taken | ||
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How It's Paid in FastTrack360 Pay Module | Leave Configuration Required in FastTrack360 | STP Reporting Rules |
Paid automatically at the Leave Payments pay batch stage based on either of the following:
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| Must be reported as Paid Leave - Type O |
Cash Out of Leave in Service | ||
Triggered manually at the Leave Payments pay batch stage. |
| Must be reported as Overtime. |
Payout at Termination of Employment | ||
Must be manually included in the ETP amount. |
| Must be reported as ETP |
Compassionate/Bereavement Leave, Study Leave,
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Employer Special Circumstances Leave
Leave Taken | ||
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How It's Paid in FastTrack360 Pay Module | Leave Configuration Required in FastTrack360 | STP Reporting Rules |
Paid automatically at the Leave Payments pay batch stage based on either of the following:
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| Must be reported as Paid Leave - Type O |
Cash Out of Leave in Service | ||
N/A - these leave types cannot be cashed out in service. | ||
Payout at Termination of Employment | ||
N/A - these leave types cannot be paid out on termination of employment. | ||
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Leave Taken | ||||
|---|---|---|---|---|
How It's Paid in FastTrack360 Pay Module | Leave Configuration Required in FastTrack360 | STP Reporting Rules | ||
Paid automatically at the Leave Payments pay batch stage based on either of the following:
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| Must be reported as Paid Leave - Type O | ||
Cash Out of Leave in Service | ||||
Triggered manually at the Leave Payments pay batch stage. |
| Must be reported as Paid Leave - Type C | ||
Payout at Termination of Employment | ||||
Manually triggered as payment type of Gross at Termination pay batch stage.
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| Must be reported as Paid Leave - Type U | ||
Manually Triggered as payment type Lump Sum A - Type R at Termination Pay batch stage.
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| Must be reported as Lump Sum A (Type R) | ||
Manually Triggered as payment type Lump Sum A - Type T at Termination Pay batch stage.
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| Must be reported as Lump Sum A (Type T) | ||
Manually triggered as payment type of Lump Sum B at Termination pay batch stage.
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| Must be reported as Lump Sum B | ||
What can you do to prepare?
You can start doing the following now to prepare for reporting of leave payments under STP Phase 2:
If you have not done so already, map your existing leave types to the relevant, corresponding ATO paid leave type (P, W, A, O). Note that functionality was introduced in the v12.10 Patch 3 release to allow you to perform that mapping. For more information, see Identifying Paid Leave Types.
If you pay annual leave loading, check the configuration of the leave type to ensure that the leave loading pay code for Payout deduction rules, which are used when cashing out leave during service, has a pay code type of Overtime, if the leave loading compensates for the opportunity to work overtime. Otherwise, if the leave loading does not compensate for the loss of opportunity to work overtime, ensure the leave loading pay code type is Leave.
If you pay TOIL leave, check that the configuration of the leave type to ensure that the leave loading pay code for Payout deduction rules, which are used when cashing out leave during service, has a pay code type of Overtime.
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