Understanding Payment Summaries
The Australian Tax Office (ATO) requires that all companies in Australia report detailed information about employee earnings on an annual basis. Currently, companies must submit payment summaries to comply with ATO regulations for earnings reporting.
Payment summaries must be submitted to the ATO electronically. In addition, you must provide employees with paper copies of their payment summaries. When employees submit their personal tax information to the ATO, they must include a copy of the payment summary that is provided by the organization.
In addition to creating payment summaries for regular earnings, you must also create:
Foreign employment payment summaries.
You create foreign employment payment summaries when your employees who are Australian residents work in taxable foreign assignments. These assignments can be standard foreign assignments (employment type F) or Joint Petroleum Development Area (JPDA) assignments (employment type J). Wages associated with these two types of taxable foreign assignments are taxed differently.
ETP payment summaries.
You create ETP payment summaries for any employees who have received ETPs at any time during the reporting year. ETP payment summaries provide detailed information about payments that employees receive when they are terminated from the organization.
The system creates standard and ETP payment summaries using detailed earnings and payment information that is stored in employee history tables. These tables are updated during the final update step of the payroll cycle. To create accurate payment summaries, you must extract the correct information from these history tables.
In Release 9.1 base, foreign payment summaries must be entered manually, as the JD Edwards EnterpriseOne Payroll system does not calculate tax information for foreign assignments. After the general availability of Release 9.1, a software update was made available, enabling payroll history to be created for foreign assignments. The system then generates foreign payment summaries based on this payroll history.
For information on this software update, and instructions regarding the creation of foreign payroll history, see:
To accurately create and submit payment summaries for the organization, you should verify that this information has been set up correctly:
Company address.
Company regional information.
Employee names.
Payment summary reporting codes.
Reporting codes on PDBAs that are included in payment summary reporting.
Foreign employment date records.
After you verify the information, you complete these steps to create and report payment summary information to the ATO:
Extract payment summary information.
Review payment summary data.
Revise payment summary data, if necessary.
Add fringe benefit taxable amounts, if necessary.
Enter foreign employment payment summary records, if necessary.
Print payment summaries.
Print ETP payment summaries.
Create the ATO extract file (EMPDUPE).