Please follow the steps below to create a new 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.
Once the new Additions After/Before Tax code is created, attach the new addition to the employee's record if it is part of their standard additions and deductions.
Note: Refer to the ATO's STP Phase 2 Reporting STP Phase 2 reporting – Quick reference guide | Australian Taxation Office for more information.