For Foreign Employment Income to appear in STP, the Foreign Income Payment needs to be entered for all relevant employees.
Note: For current information about Foreign Employment Income, always refer to the Australian Taxation Office website:
Enter Foreign Employment Income:
Go to Payroll, Maintenance, Employees, Employees.
Edit the employee and select Tax Details.
Click on the STP Summary and Foreign Income tab.
You will see the employee's current Income Type and any previously entered FEI.
Click Add to open the Foreign Employment Income window.
Select Transaction Paid, there are three options:
Current Financial Year is Foreign Income - all transaction values processed in MicrOpay relate to Foreign Employment Income. Selecting this option disables all fields except for Foreign Tax Paid.
Part Financial Year is Foreign Income - values entered will be taken from the processed transaction values in MicrOpay. The exception to this is Foreign Tax Paid.
Values not in System - values entered will be additional to the processed transaction values in MicrOpay.
Choose either FEI (Foreign Employment Income) or JPD (Joint Petroleum Development Area) as the Payment Type.
Enter the Country where the FEI was earned.
Enter the Foreign Tax Paid. This value will not affect the Australian Tax Paid or the total PAYGW. It should be what has been paid to the foreign government as tax.
Enter the Australian Tax Paid.
The Foreign Income box is used to enter Residual Gross, Overtime, Bonuses and Commission or Directors' Fees that are FEI.
You can add Allowances, Paid Leave, Salary Sacrifice, Lump Sum Payments and Terminations the employee received as FEI in each of the boxes. To do this:
Click Add in the box.
This will create an empty line in the box.
Use the drop-down list to select the component.
Enter the Amount.
To remove, highlight the line and click Delete.
Once all FEI payments have been entered, click OK.
The details entered in the Foreign Employment Income window will display in the grid. If you chose Current Financial Year is Foreign Income as the Transaction Paid there will be one line in the grid for FEI only. If you choose either Part Financial Year is Foreign Income or Values not in System there will be at least two entries in the grid, one of which will be FEI.
To Edit or Delete the FEI entry, highlight the line in the grid and click the button.
Click OK to save the employee record.
Review the Foreign Employment Income values:
STP Update
Go to Payroll, Transactions, Import and Export, STP Update.
Select the Payroll Company. You will need to run each company separately.
Either select the individual employee or tick All.
Select the Financial Year.
Under Reporting Special Category Employees, tick Foreign Employment Income Employees to filter for employees with FEI data.
Click Apply.
To see the amounts you can:
Right-click, Customise Grid Columns and drag the FEI or JDPA columns into the grid
Click on the Print Report button
Double click on the individual employees to see a detailed view of their STP data.
IQ-STP2FEI
Go to Common, IQ.
Double-click on IQ-STP2FEI - STP 2 FEI Report by Financial Year.
Enter the Tax Year.
To filter by Payroll Company or Pay Frequency enter the code. To see all data leave these parameters empty.
For Include Terminated enter 1 to include Terminated Employee or 0 to exclude them.
If required enter the ETP Cap for Death Benefits.
Click OK. This will extract the data in a grid.
Enter Exempt Foreign Income:
Go to Payroll, Maintenance, Employees, Employees.
Edit the employee and select Tax Details.
Enter Exempt Foreign Income.
Click OK to save.
You can review Exempt Foreign Income by using Customise Grid Columns to add the column to the Employee Grid or the STP Update window.