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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In some cases it may not be practical to set up a leave type to facilitate payment of leave. For example, for some low-occurrence leave types, such as those covered by paid leave categories P, W and A, it may be practical to pay instances of leave taken using manual pay items. There are also circumstances where manual pay items might be used to adjust an overpayment or an underpayment of leave.
To cater for such scenarios, a …
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STP Paid Leave Type field is available on Pay Code where the pay code
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type is Leave, as shown on Figure 3 below.
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The STP Paid Leave Type field on the pay code allows the corresponding STP leave type reporting category to be assigned (P, W, A, O) so that if the pay code is used for a manual pay item, in the Interpreter or in a pay batch, the payment or adjustment can be reported against the corresponding paid leave category in STP reporting. For example, if the Other Paid Leave (O) option is selected, manual payments/adjustments made using the pay code will affect the year-to-date Paid Leave Type O amount that is reported in STP.
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If a leave payment is linked to an absence item or a on an approved timesheet or an approved leave request, the system will reference the leave category that is selected in the header of the Leave Type, as highlighted in Figure 1, to determine how to report the payment irrespective of whether an option is selected in the STP Paid Leave Type field on the leave pay code itself. |
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If the payment is not linked to an absence item on a timesheet or a leave request and no option is selected in the STP Paid Leave Type field on the leave pay code is blank and the payments is not linked to an absence item or leave request, the payment is will not be reported as paid leave in STP - check what is it reported as then?? |
What are the specific payment/reporting rules for each leave type?
but instead it will be reported under general gross earnings, which means the payment might be misclassified. |
Configuration of Leave Types
The sections below describe in detail how each type of paid leave is required to be reported under STP Phase 2 depending on whether the leave is paid when taken, paid when cashed out in service or paid when paid out on termination of employment.
In each case, the leave configuration that is required in FastTrack360 to ensure that the leave payments are reported correctly is identified as is the process for making each type of leave payment in FastTrack360.
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With the exception of the ability to identify the paid leave type in the header of a leave type record, which is functionality that will be added to a future release of FastTrack360 in advance of the commencement of STP Phase 2 reporting, most of the leave types that have configured in your system may already adhere to the configuration that is required for each leave type to facilitate correct reporting under STP Phase 2. However, it is recommended that you check your current configuration against what is described below to ensure that leave payments will be reported as required.
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should be configured in FastTrack360 to ensure that leave payments for leave taken, for leave paid out during service and for leave paid out at termination of employment can be reported in STP in accordance with ATO requirements.
In each case, the leave configuration that is required in FastTrack360 to ensure that the leave payments are reported correctly is identified as is the process for making each type of leave payment in FastTrack360
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Annual Leave
Leave Taken |
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How It's Paid in FastTrack360 Pay Module | Leave Configuration Required in FastTrack360 | STP Reporting RulesHow Does FastTrack360 Report the Payment in STP? |
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Paid automatically at the Leave Payments pay batch stage based on either of the following: an approved leave request linked to the leave type an absence item, linked to the leave type, on an approved timesheet.
| Paid Leave Type in leave type record header must be set to O - Other to identify the leave type that is being paid for STP reporting purposes. Leave type must have deduction rule(s) for Leave Taken to facilitate automatic payment at the Leave Payments pay batch stage.
Must be reported | Reported as Paid Leave - Type O |
Cash Out of Leave in Service |
Triggered manually at the Leave Payments pay batch stage. | Paid Leave Type in leave type record header must be set to O - Other to identify the leave type that is being paid for STP reporting purposes. Leave type must have deduction rule(s) for Payout to facilitate cashing out the leave balance at the Leave Payments pay batch stage and the pay code referenced by the deduction rules must have a pay code type of Leave.
| Must be reported Reported as Paid Leave - Type C |
Payout at Termination of Employment |
Manually triggered as payment type of Gross at Termination pay batch stage. | Info |
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This only applies to unused annual leave that is paid out as part of a normal termination (i.e. reason for termination is not genuine redundancy, invalidity or early retirement schemes) and has accrued since 17/08/1993. |
| Paid Leave Type in leave type record header must be set to O - Other to identify the leave type that is being paid for STP reporting purposes. Leave type must have deduction rule(s) for Termination to facilitate paying out the leave balance at the Termination pay batch stage and the pay code referenced by the deduction rules must have a pay code type of Leave.
| Must be reported Reported as Paid Leave - Type U |
Manually Triggered as payment type Lump Sum A - Type R at Termination Pay batch stage. | Info |
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This only applies to unused annual leave that is paid out as part of a genuine redundancy, invalidity or early retirement scheme. |
| Paid Leave Type in leave type record header must be set to O - Other to identify the leave type that is being paid for STP reporting purposes. Leave type must have deduction rule(s) for Termination to facilitate paying out the leave balance at the Termination pay batch stage and the pay code referenced by the deduction rules must have a pay code type of Leave.
| Must be reported Reported as Lump Sum A (Type R). |
Manually Triggered as payment type Lump Sum A - Type T at Termination Pay batch stage. | Info |
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This only applies to unused annual leave that is paid out as part of a normal termination (i.e. reason for termination is not genuine redundancy, invalidity or early retirement schemes) and has accrued before 17/08/1993. |
| Paid Leave Type in leave type record header must be set to O - Other to identify the leave type that is being paid for STP reporting purposes. Leave type must have deduction rule(s) for Termination to facilitate paying out the leave balance at the Termination pay batch stage.
Must be reported | Reported as Lump Sum A (Type T). |
Annual Leave Loading
Leave Taken |
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How It's Paid in FastTrack360 Pay Module | Leave Configuration Required in FastTrack360 | STP Reporting RulesHow Does FastTrack360 Report the Payment in STP? |
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Paid automatically at the Leave Payments pay batch stage when annual leave is paid, if annual leave is configured with a leave loading, based on either of the following: an approved leave request linked to the leave type an absence item, linked to the leave type, on an approved timesheet.
| Paid Leave Type in leave type record header must be set to O - Other to identify the leave type that is being paid for STP reporting purposes. Leave type must have deduction rule(s) for Leave Taken to facilitate automatic payment at the Leave Payments pay batch stage and the leave deduction rules must have a leave loading percentage defined.
Must be reported | Reported as Paid Leave - Type O |
Cash Out of Leave in Service |
Triggered automatically when a cash out of annual leave is manually triggered at the Leave Payments pay batch stage. | Paid Leave Type in leave type record header must be set to O - Other to identify the leave type that is being paid for STP reporting purposes. Leave type must have deduction rule(s) for Payout to facilitate cashing out the leave balance at the Leave Payments pay batch stage and the leave deduction rules must have a leave loading percentage defined. The loading pay codes on the leave deduction rules for Payout must be of one of the following pay code types: Overtime - this pay code type must be used to pay the cash out of the loading if the applicable award/agreement stipulates that the loading is in compensation for the loss of opportunity to work overtime. Leave - this pay code type must be used to pay the cash out of the loading if the loading is not in compensation for the loss of opportunity to work overtime.
| If paid against pay code type of Overtime, must be is reported as Overtime. Otherwise, must be is reported as Paid Leave - Type C |
Payout at Termination of Employment |
Manually triggered as payment type of Gross at Termination pay batch stage. | Info |
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This only applies to unused annual leave loading that is paid out as part of a normal termination (i.e. reason for termination is not genuine redundancy, invalidity or early retirement schemes) and has accrued since 17/08/1993. |
| Paid Leave Type in leave type record header must be set to O - Other to identify the leave type that is being paid for STP reporting purposes. Leave type must have deduction rule(s) for Termination to facilitate paying out the leave balance at the Termination pay batch stage and the leave pay batch stage and the leave deduction rules must have a leave loading percentage defined. The leave loading pay code referenced by the deduction rules must have a leave loading percentage defined pay code type of Leave.
| Must be reported Reported as Paid Leave - Type U |
Manually Triggered as payment type Lump Sum A - Type R at Termination Pay batch stage. | Info |
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This only applies to unused annual leave loading that is paid out as part of a genuine redundancy, invalidity or early retirement scheme. |
| Paid Leave Type in leave type record header must be set to O - Other to identify the leave type that is being paid for STP reporting purposes. Leave type must have deduction rule(s) for Termination to facilitate paying out the leave balance at the Termination pay batch stage and the leave deduction rules must have a leave loading percentage defined.
Must be reported | Reported as Lump Sum A (Type R). |
Manually Triggered as payment type Lump Sum A - Type T at Termination Pay batch stage. | Info |
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This only applies to unused annual leave loading that is paid out as part of a normal termination (i.e. reason for termination is not genuine redundancy, invalidity or early retirement schemes) and has accrued before 16/08/1993. |
| Paid Leave Type in leave type record header must be set to O - Other to identify the leave type that is being paid for STP reporting purposes. Leave type must have deduction rule(s) for Termination to facilitate paying out the leave balance at the Termination pay batch stage and the leave deduction rules must have a leave loading percentage defined.
Must be reported | Reported as Lump Sum A (Type T). |
**Personal/Carers' Leave
Leave Taken |
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How It's Paid in FastTrack360 Pay Module | Leave Configuration Required in FastTrack360STP Reporting RulesRequired in FastTrack360 | How Does FastTrack360 Report the Payment in STP? |
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Paid automatically at the Leave Payments pay batch stage based on either of the following: an approved leave request linked to the leave type an absence item, linked to the leave type, on an approved timesheet.
| Paid Leave Type in leave type record header must be set to O - Other to identify the leave type that is being paid for STP reporting purposes. Leave type must have deduction rule(s) for Leave Taken to facilitate automatic payment at the Leave Payments pay batch stage.
| Must be reported as Paid Leave - Type O |
Cash Out of Leave in Service |
Triggered manually at the Leave Payments pay batch stage. | Info |
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This leave type can only be cashed out in service under some awards/agreements. |
| Paid Leave Type in leave type record header must be set to O - Other to identify the leave type that is being paid for STP reporting purposes. Leave type must have deduction rule(s) for Payout to facilitate cashing out the leave balance at the Leave Payments pay batch stage (if applicable) and the pay code referenced by the deduction rules must have a pay code type of Leave.
| Must be reported as Paid Leave - Type C |
Payout at Termination of Employment |
Must be manually added to the ETP amount at the Termination pay batch stage. | | Must be reported as ETP |
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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 RulesHow Does FastTrack360 Report the Payment in STP? |
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Paid automatically at the Leave Payments pay batch stage based on either of the following: an approved leave request linked to the leave type an absence item, linked to the leave type, on an approved timesheet.
| Paid Leave Type in leave type record header must be set to O - Other to identify the leave type that is being paid for STP reporting purposes. Leave type must have deduction rule(s) for Leave Taken to facilitate automatic payment at the Leave Payments pay batch stage.
| Must be reported as Paid Leave - Type O |
Cash Out of Leave in Service |
Triggered manually at the Leave Payments pay batch stage. | Paid Leave Type in leave type record header must be set to O - Other to identify the leave type that is being paid for STP reporting purposes. Leave type must have deduction rule(s) for Payout to facilitate cashing out the leave balance at the Leave Payments pay batch stage and the pay code referenced by the deduction rules must have a pay code type of Leave.
| Must be reported as Paid Leave - Type C |
Payout at Termination of Employment |
Must be manually included in the ETP amount. | | Must be reported as ETP |
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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 RulesHow Does FastTrack360 Report the Payment in STP? |
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Paid automatically at the Leave Payments pay batch stage based on either of the following: an approved leave request linked to the leave type an absence item, linked to the leave type, on an approved timesheet.
| Paid Leave Type in leave type record header must be set to O - Other to identify the leave type that is being paid for STP reporting purposes. Leave type must have deduction rule(s) for Leave Taken to facilitate automatic payment at the Leave Payments pay batch stage.
| Must be reported as Paid Leave - Type O |
Cash Out of Leave in Service |
Triggered manually at the Leave Payments pay batch stage. | Paid Leave Type in leave type record header must be set to O - Other to identify the leave type that is being paid for STP reporting purposes. Leave type must have deduction rule(s) for Payout to facilitate cashing out the leave balance at the Leave Payments pay batch stage and the pay code referenced by the deduction rules must have a pay code type of Overtime.
| Must be reported as Overtime. |
Payout at Termination of Employment |
Must be manually included in the ETP amount. | | Must be reported as ETP |
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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 RulesHow Does FastTrack360 Report the Payment in STP? |
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Paid automatically at the Leave Payments pay batch stage based on either of the following: an approved leave request linked to the leave type an absence item, linked to the leave type, on an approved timesheet.
| Paid Leave Type in leave type record header must be set to O - Other to identify the leave type that is being paid for STP reporting purposes. Leave type must have deduction rule(s) for Leave Taken to facilitate automatic payment at the Leave Payments pay batch stage.
| 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 |
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How It's Paid in FastTrack360 Pay Module | Leave Configuration Required in FastTrack360 | STP Reporting RulesHow Does FastTrack360 Report the Payment in STP? |
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Paid automatically at the Leave Payments pay batch stage based on either of the following: an approved leave request linked to the leave type an absence item, linked to the leave type, on an approved timesheet.
| Paid Leave Type in leave type record header must be set to P - Parental to identify the leave type that is being paid for STP reporting purposes. Leave type must have deduction rule(s) for Leave Taken to facilitate automatic payment at the Leave Payments pay batch stage.
| Must be reported as Paid Leave - Type P |
Cash Out of Leave in Service |
N/A - this leave type cannot be cashed out in service. |
Payout at Termination of Employment |
N/A - this leave type cannot be paid out on termination of employment. |
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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 RulesHow Does FastTrack360 Report the Payment in STP? |
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Paid automatically at the Leave Payments pay batch stage based on either of the following: an approved leave request linked to the leave type an absence item, linked to the leave type, on an approved timesheet.
| Paid Leave Type in leave type record header must be set to W - Workers' Comp to identify the leave type that is being paid for STP reporting purposes. Leave type must have deduction rule(s) for Leave Taken to facilitate automatic payment at the Leave Payments pay batch stage.
| Must be reported as Paid Leave - Type W |
Cash Out of Leave in Service |
N/A - this leave type cannot be cashed out in service. |
Payout at Termination of Employment |
N/A - this leave type cannot be paid out on termination of employment. |
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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 RulesHow Does FastTrack360 Report the Payment in STP? |
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Paid automatically at the Leave Payments pay batch stage based on either of the following: an approved leave request linked to the leave type an absence item, linked to the leave type, on an approved timesheet.
| Paid Leave Type in leave type record header must be set to A - Ancillary to identify the leave type that is being paid for STP reporting purposes. Leave type must have deduction rule(s) for Leave Taken to facilitate automatic payment at the Leave Payments pay batch stage.
| Must be reported as Paid Leave - Type A |
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 |
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How It's Paid in FastTrack360 Pay Module | Leave Configuration Required in FastTrack360 | STP Reporting RulesHow Does FastTrack360 Report the Payment in STP? |
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Paid automatically at the Leave Payments pay batch stage based on either of the following: an approved leave request linked to the leave type an absence item, linked to the leave type, on an approved timesheet.
| Paid Leave Type in leave type record header must be set to O - Other to identify the leave type that is being paid for STP reporting purposes. Leave type must have deduction rule(s) for Leave Taken to facilitate automatic payment at the Leave Payments pay batch stage.
| Must be reported as Paid Leave - Type O |
Cash Out of Leave in Service |
Triggered manually at the Leave Payments pay batch stage. | Paid Leave Type in leave type record header must be set to O - Other to identify the leave type that is being paid for STP reporting purposes. Leave type must have deduction rule(s) for Payout to facilitate cashing out the leave balance 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. | Info |
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This applies to long service leave accrued since 16/08/1993 that is paid as part of a normal termination (i.e. reason for termination is not genuine redundancy, invalidity or early retirement schemes). |
| Paid Leave Type in leave type record header must be set to O - Other to identify the leave type that is being paid for STP reporting purposes. Leave type must have deduction rule(s) for Termination to facilitate paying out the leave balance at the Termination pay batch stage.
| Must be reported as Paid Leave - Type U |
Manually Triggered as payment type Lump Sum A - Type R at Termination Pay batch stage. | Info |
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This only applies to unused long service leave that accrued since 16/08/1978 and is paid out as part of a genuine redundancy, invalidity or early retirement scheme. |
| Paid Leave Type in leave type record header must be set to O - Other to identify the leave type that is being paid for STP reporting purposes. Leave type must have deduction rule(s) for Termination to facilitate paying out the leave balance at the Termination pay batch stage.
| Must be reported as Lump Sum A (Type R) |
Manually Triggered as payment type Lump Sum A - Type T at Termination Pay batch stage. | Info |
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This only applies to unused long service leave that is paid out as part of a normal termination (i.e. reason for termination is not genuine redundancy, invalidity or early retirement schemes) and has accrued between 16/08/1978 and 16/08/1993. |
| Paid Leave Type in leave type record header must be set to O - Other to identify the leave type that is being paid for STP reporting purposes. Leave type must have deduction rule(s) for Termination to facilitate paying out the leave balance at the Termination pay batch stage.
| Must be reported as Lump Sum A (Type T) |
Manually triggered as payment type of Lump Sum B at Termination pay batch stage. | Info |
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This applies to long service leave accrued before August 1978. |
| Paid Leave Type in leave type record header must be set to O - Other to identify the leave type that is being paid for STP reporting purposes. Leave type must have deduction rule(s) for Termination to facilitate paying out the leave balance at the Termination pay batch stage.
| Must be reported as Lump Sum B |