Payment Summary Reporting Codes

You must set up payment summary Reporting codes in UDC 06/S2 to specify where information should print on the payment summaries. Currently, the ATO allows for nine reportable allowances and deductions, and two reportable gifts (Workplace Giving). These should be numbered A1 to A9 for allowances, U1 to U9 for deductions, G1 for gifts, and F1 to F9 for foreign exempt income. The codes that you use must adhere to these guidelines to ensure that information prints in the correct area of the payment summary form:

• All reportable allowances must begin with the letter A.

  For example, you might use code A1 to specify a car allowance, and code A2 to specify a meal allowance. To comply with ATO regulations, you can set up a maximum of five codes for reportable allowances.

• All reportable deductions must begin with the letter U.

  For example, you might use code U1 to specify union fees. To comply with ATO regulations, you can set up a maximum of two codes for reportable deductions.

• All lump sum amounts must begin with the letter L.

  These codes are hard-coded in the UDC table and should not be changed. For example, codes LA, LB, LC, LD, and LE are used to specify Lump Sum A, Lump Sum B, Lump Sum C, Lump Sum D, and Lump Sum E.

• Foreign taxable income must use one of the codes listed below, depending on whether the foreign assignment is a standard taxable assignment (codes beginning with F) or a Joint Petroleum Development Area (JPDA) assignment (codes beginning with J). These codes are hard-coded and should not be changed:

  • FA: Foreign Lump Sum A

  • FD: Foreign Lump Sum D

  • FX: Foreign Tax

  • FE: Foreign Lump Sum E

  • JA: JPDA Lump Sum A

  • JD: JPDA Lump Sum D

  • JX: JPDA Tax

  • JE: JPDA Lump Sum E

• All foreign exempt income must begin with the letter F.

  For example, you might use code F1 to specify exempt foreign income for New Zealand, and code F2 to specify exempt foreign income for Japan. You can set up a maximum of nine codes for reportable exempt foreign income. For clarification on what types of foreign income must be printed on the payment summary, contact your ATO representative.

  Note:

  A software update for the 9.1 release now provides users with the ability to enter exempt foreign tax information on individual PDBAs. If you have that software update, use the instructions provided in this chapter to set up foreign exempt pay types:

  (AUS) Setting Up Foreign Employment Information.

  If you do not have that software update, use the instructions listed in this section.

After you determine whether your organization has foreign exempt income to report, you must complete the following tasks to ensure that the information prints correctly on the payment summary forms:

• Define the new reporting codes in UDC 06/S2.

  For example, set up code F1 as New Zealand to report foreign exempt income for employees who work in New Zealand.

• Create a non-taxable pay type for New Zealand exempt income, and enter F1 in the Aust. Tax Reporting field on the Tax Instructions – Australia and New Zealand form.

• Use this pay type when entering timecards for employees who receive foreign exempt income while working in New Zealand.

  For example, if an employee works in New Zealand for one month, and that work qualifies as foreign exempt income, use this pay type to enter timecards for the employee during that month. You do not use this pay type to enter timecards for the employee when they are not working in a foreign country.

• Process the timecards through the payroll cycle. The history records that are created during final update contain the F1 code, which ensures that the information will print correctly on the payment summary forms.