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STP Deduction Types

Owned by Jessie Du
Last updated: Jan 24, 2022
2 min read

There are components that must be reported through STP that influences the amount paid to an employee, but relate to the employee themselves rather than the kind of payment they are receiving. As pre-tax deductions reduce gross wages these would need to be reported. The reporting of deductions does not change under STP Phase 2.

There are two deduction types you can report:

  • union and professional association fees (deduction type F)

  • workplace giving (deduction type W).

Union and professional association fees (deduction type F)

Business Definition

This only report union fees and professional association fees deducted from payroll as Deduction type F.

No other post-tax deductions can be reported as Deduction type F.

Pre-tax salary sacrifice of fees should be reported as Other employee benefits ( O ).

DataPay Setup

A component will be reported under Fee’s if it is set up to output the Union/Professional Association Fee attribute:

Workplace giving (deduction type W)

Business Definition

You should only report workplace giving as deduction type W if the amount is:

  • an employee contribution made via a formal workplace giving program in accordance with ATO guidelines

  • a post-tax contribution to a charity.

No other post-tax deductions can be reported as Deduction type W.

Pre-tax salary sacrifice of workplace giving should be reported as Other employee benefits ( O ).

DataPay Setup

A component will be reported under Workplace Giving if it is set up to output the Workplace Giving attribute:

 

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