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This feature is available from Version X9.1 and above. Click to view the details of all the features available in the Version Release Notes X9.1. |
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Pay Event Employee File
Leave Component
Leave component in the Single Touch Payroll (STP) are payments made to an employee for their accrued leave entitlements, such as parental leave, ancillary, and defence leave. Under STP, employers are required to report these leave payments to the Australian Taxation Office (ATO) each time the payroll is run.
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The Leave Tuple is created for the employee in the pay event file who received this amount as shown in the figure below.
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Termination Payment: Lump Sum A Type R
Termination Payment as Lump Sum A Type R is the type of payment that employers make to employees when their engagement with the employer ends.
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Cessation Date - This is the date when the employee’s engagement with the employer ends
Cessation Type - When a cessation date is reported in a Pay Event, a Cessation Type code must also be reported. The Cessation Type code selected should be either ‘R' (Redundancy) or 'I’ (Ill Health)
Cessation Type Code
As per ATO guidelines for STP phase 2, it is mandatory to report the termination reason for the Lump Sum A, Type R payments.
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The Lump Sum Code Tuple is created in the pay event file for the terminated employees that show the reason as R (Redundancy), or I (Ill health ) as shown in the figure below.
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Mapping Lump Sum A Type R
In the Finance application, open the Additions and Deductions screen to declare the Lump Sum A Type R addition.
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Click STP
→Allowances Mapping and Single Touch Payroll Allowance Codes Mapping screen opensNow, you need to map Codes defined by ATO for Allowances/Deductions with the Codes available in the System for Allowances/Additions/Deductions for Lump Sum A Type R addition
Map addition type as Lump Sum Code A Sub Type R as defined by ATO
Additions that are checked as Lump Sum A type R in Addition/ Deduction Master are allowed to be mapped with Lump Sum A, Type R code in Allowance Codes Mapping screen else validation message appears
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Validations to Generate Valid Data Files
The validations for Lump Sum A type R addition are placed to generate and validate data file that helps to provide a check to set the compliance of any output as compared to the input provided 👨💻 🤓.
A. Validation for Invalid Reason Category
As per ATO guidelines for STP phase 2, it is mandatory to report the termination reason for the Lump Sum A, Type R, and the termination reason category selected should be either Ill health (I) or Redundancy (R).
If the termination reason category selected is not ‘R' or “I’ for the employee, a validation message appears while processing the STP in the Verify Employee Details (Mandatory) step. The Invalid / Missing Member Details shows the message as 'Invalid Member Termination Reason Category: “Lump Sum A, Type R” payments can only be added if the reason for member termination falls under the categories of “STP: Redundancy (R)” or STP: Ill Health(I)” with the Member ID and Member Name as shown in the figure below.
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B. Validation for Adding the Addition to Non-Terminated Member
Case 1: If the client has an addition mapped with code Lump Sum A Type R and this addition is added against a non-terminated member in the Member Payroll → Additions and Deductions screen (in the member module):
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In this scenario, when the staff clicks Update Payslip in the Payroll Manager screen, a validation message appears as ‘The member cannot receive the <Addition Name> addition due to its mapping with the STP reporting code "Lump Sum A, Type R". "Lump Sum A, Type R" payments are only permissible for terminated members, hence cannot be added for the member.’ as shown in the figure below
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C. Validation for Invalid Mapping in the ATO Allowance Codes Mapping Screen
Case 1: Additions that are checked as a Lump Sum A Type R in the Addition/ Deduction Master screen:
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🔗 Link to Single Touch Payroll (STP) – Phase 2
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