STP: Income types & Phase 2 reporting | Video

A new Phase 2 requirement is to assign an income type for each payment made to an employee. There may be instances throughout the financial year where payments are reported against multiple income types. For example, a working holiday maker who has then been granted permanent residency would change from a 'Working holiday maker' income type to 'Salary and wages' income type.

Some income types also require a country code to be reported. For example, if you make a payment to an Australian resident working overseas, you'll need to provide information about the host country.

You'll find these in:

• 'STP income types' dropdown in the Pay Run Defaults screen (this is a new section that will be available to users in the coming weeks) or
• 'Tax calculation options' section in the Tax File Declaration screen 

For a detailed article on income types and country codes click here.