You create additions to pay allowances to your employees. When you set up the addition, you will also define it for STP reporting. Refer to the ATO's Quick reference guide for more information on STP reporting groups.
To create an addition and report it as an allowance for STP purposes:
Go to Payroll, Maintenance, General, Additions and Deductions.
Click Add.
Enter the Code, Shortcut Key, and Description.
Select Additions After/Before Tax as the Category.
Select the Type as Amount.
Enter an Amount if there is a standard amount per pay. This can be overwritten on the employee record.
If required, tick Include in EarlyPay. This field is only available where EarlyPay is enabled for the database. Ticking this will allow the addition to be imported into the EarlyPay Worksheet.
Click the STP Reporting tab.
Choose Include in Allowance (not in Gross) under STP1
For STP Phase 2, select the Reporting Group, Reporting Subgroup, and the Other Allowance Description as per the ATO's reporting guidelines.
Tick Ordinary Time Earnings (OTE) if applicable.
Click OK to save.
Attach the addition to the employee's record if it is part of their standard pay.