STP Reporting Codes
This guide lists the codes Microkeeper uses when it reports your pay runs to the ATO through Single Touch Payroll (STP). Use it to choose the right category for a payment or deduction, and to check what an employee's profile settings report.
It's part of the Single Touch Payroll guides. For what terms like Final and YTD mean, see Single Touch Payroll terms.
Payments and Deductions Classification Chart
The ATO's STP specifications are complex, so Microkeeper puts the options into one list and reports each payment from the category you choose. This chart helps you pick the right category for a payment or deduction. Other STP fields are self-explanatory or filled in by Microkeeper.
For payments, the MK Code is the STP Category field on Shift Rules and Extra Rules (the Single Touch Payroll field on Public Holiday Rules), and the MK Class is the Class field. For deductions and expenses, you choose the Class in Menu > Settings > Payroll Rules > Deductions Rules.
Gross depends on the MK Class
Gross is a dynamic STP category. When the STP code is blank ({NULL}), Microkeeper also checks the payment's MK Class to decide how it's reported.
Warning
This chart isn't legal advice, and Microkeeper can't tell you how to classify a payment. If you're not sure, check the ATO website or get professional advice.
Normal Earnings
| MK code | Title | Class | STP code | ATO description |
|---|---|---|---|---|
| {NULL} | Gross | Normal | Gross | Include all salary, wages, bonuses, and commissions paid to the employee This will go towards their Income Type, eg SAW or WHM amounts |
| Overtime | Overtime | |||
| Bonus | Bonus and commission | |||
| penalty | Penalty | ANY | Gross | All salary and wages paid to the employee. |
| gross_q0 | Gross (Qualified Earnings=0) | Reported as gross earnings for STP, but qualifying earnings are reported as $0 for super reporting. | ||
| foreign | Foreign Income | Income that was paid to the employee while working abroad, review ATO rules behind this | ||
| fr_tax | Foreign Tax | Tax that was paid to foreign countries, review ATO rules behind this | ||
| director | Directors Fees | Payments made to directors | ||
| SKIP | Skip STP reporting | The payment will not be included in STP reporting, this can be used to for a range of reason, example, director drawings, making correction, etc. |
Allowances
| MK Code | Microkeeper Title | STP Code | ATO Brief Description |
|---|---|---|---|
| Car | Cents per KM | CD | Car expense allowance. |
| Laundry | Laundry | LD | Laundry allowances. |
| Meals | Overtime Meals | MD | Award overtime meal allowance. |
| Transport | Award Transport Payments | AD | Award transport payments up to reasonable amounts. |
| Travel | Domestic or Overseas Travel | RD | Domestic or overseas travel allowance above the reasonable limit and all overseas accommodation allowances. |
| Tool | Tool | TD | Deductible allowances to compensate an employee who provides their own tools |
| Tasks | Tasks | KN | Activities that involve additional responsibilities, eg higher duties allowance, confined spaces allowance, dirty work, height money, first aid, etc. |
| Certs | Qualifications or Certificates | QN | Maintaining a qualification that is evidenced by a certificate, licence or similar, example allowances to cover registration fees, insurance, licence fees, etc. |
| Other | Other | OD | All other allowances for expected deductible expenses |
Leave Payments
| MK Code | Microkeeper Title | STP Code | ATO Brief Description |
|---|---|---|---|
| O | Other Paid | O | Annual, Personal, RDO, TIL, etc |
| C | Cash Out Leave In Service | C | Leave that is paid out above the standard work hours |
| P | Paid Parental | P | Paid parental leave. Reported as Paid Parental Leave for STP, with qualifying earnings reported as $0 for super reporting. |
| W | Workers Compensation | W | Workers Compensation |
| A | Ancillary and Defence | A | Ancillary and Defence |
| U | Unused Leave on Termination | U | Leave paid out on Termination |
Employee Termination Payments ETP
| MK Code | Microkeeper Title | STP Code | ATO Brief Description |
|---|---|---|---|
| ETP_R_T | Type R - Taxable | ETP made because of one of the following: early retirement scheme, genuine redundancy, invalidity, or compensation for personal injury, unfair dismissal, harassment, or discrimination. | |
| ETP_R_F | Type R - Tax-Free | As above line except for tax-free component. | |
| ETP_O_T | Type O - Taxable | Other ETP not described by R (for example: golden handshake, gratuity, payment in lieu of notice, payment for unused sick leave, or payment for unused rostered days off). | |
| ETP_O_F | Type O - Tax-Free | As above line except for tax-free component. | |
| ETP_S_T | Type S - Taxable | ETP code R payment received in the current year and received another ETP (code R or code O), or a transitional termination payment, in an earlier income year for the same termination of employment. | |
| ETP_S_F | Type S - Tax-Free | As above line except for tax-free component. | |
| ETP_P_T | Type P - Taxable | ETP code O payment received in the current year and received another ETP (code R or code O), or a transitional termination payment, in an earlier income year for the same termination of employment. | |
| ETP_P_F | Type P - Tax-Free | As above line except for tax-free component. | |
| ETP_D_T | Type D | Death benefit ETP paid to a dependant of the deceased | |
| ETP_B_T | Type B | Death benefit ETP paid to a non-dependant of the deceased and a termination payment was made to the non-dependant in a previous income year for the same termination. | |
| ETP_N_T | Type N | Death benefit ETP paid to a non-dependant of the deceased. | |
| ETP_T_T | Type T | Death benefit ETP paid to a trustee of the deceased estate. |
Lump Sum Payments
| MK Code | Microkeeper Title | STP Code | ATO Brief Description |
|---|---|---|---|
| Lump_A_R | Lump A - Type R | Type R = Where payment was for a genuine redundancy, invalidity or under an early retirement scheme. Lump A = The amount paid for unused long service leave that accrued after 15 August 1978 but before 18 August 1993; unused holiday pay and other leave-related payments that accrued before 18 August 1993 or unused long service leave accrued after 17 August 1993 or unused holiday pay or related payments, where the amount was paid in connection with a payment that includes or consists of a genuine redundancy payment, an early retirement scheme payment or the invalidity segment of an employment termination payment or superannuation payment. | |
| Lump_A_T | Lump A - Type T | Type T = Where payment was not a payment for a genuine redundancy, invalidity or under an early retirement scheme. Lump A = Description above. | |
| Lump_B | Lump B | The amount paid for unused long service leave that accrued before 16 August 1978. | |
| Lump_D | Lump D | The amount of genuine redundancy payment or early retirement scheme payment below the tax-free threshold. | |
| Lump_E | Lump E | The amount of back payment received including salary or wages that accrued in a period more than 12 months before the date of payment. Lump Sum Type E must include the Year This is done by adding a @{year} to the payment Title Title example Lump E @2017 |
Expenses
| MK Code | Microkeeper Title | STP Code | ATO Brief Description |
|---|---|---|---|
| {blank} | Other Salary Sacrifice | O | Other Salary Sacrifice |
| SUPER | Super Salary Sacrifice | S + R | Super Salary Sacrifice, that is also super amount above the super guarantee |
| FRINGE | Fringe Benefit - Exempt - Salary Sacrificed | O + X | Reportable Fringe Benefit Exempt from tax, that is also an Other Salary Sacrifice |
| FRING2 | Fringe Benefit - Taxable - Salary Sacrificed | O + T | Reportable Fringe Benefit that is taxable, that is also an Other Salary Sacrifice |
| FRING3 | Fringe Benefit - Exempt - Normal | X | Reportable Fringe Benefit Exempt from tax |
| FRING4 | Fringe Benefit - Taxable - Normal | T | Reportable Fringe Benefit that is taxable |
Deductions
| MK Code | Microkeeper Title | STP Code | ATO Brief Description |
|---|---|---|---|
| Workplace Giving | Workplace giving is a simple way to regularly donate to charities or organizations that are entitled to receive tax-deductible donations. | ||
| Fees | Union fees, subscriptions to associations and bargaining agents fees, can be entitled to receive a tax deduction. | ||
| Child Support PEA | D | Child Support - Protected Earnings Amount, Services Australia might call this Employer Withholding (EW). | |
| Child Support 72A | G | Child Support - Protected under 72A notice, Services Australia might call this Garnishee. | |
| Super | After Tax Super Contribution. |
Superannuation
| MK Code | Microkeeper Title | STP Code | ATO Brief Description |
|---|---|---|---|
| L | Employer Super Guarantee | L | Superannuation Liability contribution payable by a payer for the benefit of a payee as mandated by super guarantee legislation. |
| R | Additional Employer Super | R | RESC - Reportable Employer Superannuation Contribution additional, optional (not legislated or mandated by industrial, legislative or business policy instruments). |
| RESC | RESC | R | Microkeepers Additional Employer Super is a percentage, so this option provided an alternative as a dollar value. |
| R | Super Salary Sacrifice | R | Employer super contributions made on behalf of the employee, that have been influenced by the employee. Salary sacrificed super contributions are classified as employer super contributions, rather than employee contributions. |
Tax Treatment Codes
The Tax Treatment Code is a 6 character code. Each character is a different tax category.
For example, "RTSXXX" is a Regular employee with the Tax-free threshold and a Student loan.
Microkeeper builds the code from the Employee Tax section of the employee's profile: Tax Scale, Override Tax Scale, STP Income Stream Type, Tax Free Threshold Claimed, HELP-HECS Loan, Medicare Levy Surcharge and Medicare Levy Reductions. To open a profile, navigate to Menu > Settings > Employees and click Edit next to the employee.
| Character | What it shows | Values |
|---|---|---|
| 1 | Category of tax scale | See the next table |
| 2 | Option within that category | See the next table |
| 3 | Study and Training Support Loan | S = has a loan, X = not applicable |
| 4 | Medicare Levy Surcharge tier | 1, 2 or 3, X = not applicable |
| 5 | Medicare Levy exemption | H = half (Tax Scale 6), F = full (Tax Scale 5), X = not applicable |
| 6 | Medicare Levy reduction | 0 = spouse, 1 to 9 = number of children, A = 10 or more children, X = not applicable |
Characters 3 to 6 are X when the employee hasn't made a selection.
| Character 1 | Character 2 options | Uses characters 3 to 6 |
|---|---|---|
| R = Regular | T = tax-free threshold (Tax Scale 2), N = no tax-free threshold (Tax Scale 1), D = daily work pattern | Yes |
| A = Actors | T = tax-free threshold, N = no tax-free threshold, D = daily work pattern, P = promotional activity | Yes |
| C = Horticulturists and shearers | T = tax-free threshold, N = no tax-free threshold, F = foreign resident | No |
| S = Seniors and pensioners | S = single, M = married, I = illness-separated. S isn't eligible for the Medicare Levy reduction for a spouse | Yes |
| H = Working holiday makers | R = registered, U = unregistered, F = foreign resident (Tax Scale 4b) | No |
| W = Seasonal Worker Programme | P = programme | No |
| F = Foreign resident | F = foreign resident (Tax Scale 3) | Character 3 only |
| N = No TFN | F = foreign resident (Tax Scale 4b), A = Australian resident (Tax Scale 4a) | No |
| D = ATO-defined | V = downward variation, B = death beneficiary, Z = non-employee | No |
| V = Voluntary agreement | C = Commissioner's instalment rate, O = other rate | No |
The ATO's diagram below shows the same values.
Employment Basis Codes
These are the Employment Basis values the ATO accepts.
Microkeeper reports F, P or C from the employee's Employment Type (Full Time, Part Time or Casual) in the Payment and Employment section of their profile. To report L, V, D or N, choose it in Status Override in the same section. Employees set to Sub-Contractor or Sub-Contractor with Super aren't included in STP.
| Code | Employment Basis | Description |
|---|---|---|
| F | Full time | A person who is engaged for the full ordinary hours of work as agreed between the payer and the payee and/or set by an award, registered agreement or other engagement arrangement. A full-time payee has an expectation of continuity of the employment or engagement on either an ongoing or fixed term basis |
| P | Part time | A person who is engaged for less than the full ordinary hours of work, as agreed between the payer and the payee and/or set by an award, registered agreement or other engagement arrangement. A part time payee has an expectation of continuity of the employment or engagement on either an ongoing or fixed term basis |
| C | Casual | A person who does not have a firm commitment in advance from a payer about how long they will be employed or engaged, or for the days or hours they will work. A casual payee also does not commit to all work a payer may offer. A casual payee has no expectation of continuity of the employment or engagement |
| L | Labour Hire | A contractor who has been engaged by a payer to work for their client. Don't use this employment basis in relation to workers that are your employees. |
| V | Voluntary Agreement | A contractor with their own ABN who has entered into a voluntary agreement with a business to bring work payments into the PAYG withholding system. To do this, a contractor would normally complete a Voluntary agreement for PAYG withholding (NAT 2772) form. |
| D | Death Beneficiary | The recipient of an employment termination payment (ETP) death beneficiary payment who is either a dependant, non-dependant or trustee of the estate of the deceased payee. |
| N | Non-Employee | A contractor who is not in scope of STP for payments but may be included in STP for voluntary reporting of super liabilities only. If you report this employment basis, you must include the ABN of the contractor and you can't report any payments you have made to them. |
Income Stream Type Codes
You set an employee's income stream in STP Income Stream Type, in the Employee Tax section of their profile. It defaults to SAW - Salary and Wages. If it's left on SAW and the Tax Scale is Working Holiday Makers, Microkeeper reports WHM.
| Code | Income Stream Type |
|---|---|
| SAW | Salary and wages |
| CHP | Closely Held Payees |
| IAA | Inbound Assignees to Australia |
| WHM | Working Holiday Maker |
| SWP | Seasonal Worker Programme |
| VOL | Voluntary Agreement |
| LAB | Labor Hire |
| OSP | Other Specified Payments |
| FEI | Foreign Employment |
SAW and WHM are the most common in Microkeeper. The ATO website describes each option in detail.
Warning
Changing the tax scale or income stream during the financial year re-reports all of the employee's pay for the year to the ATO under the new settings. To avoid this, terminate the employee and add a new employee profile.
ATO Cessation Types
The cessation type is the reason an employee's employment ended, from the list the ATO supplies. You choose it in Cessation Type, with the Termination Date, in the Active Status section of the employee's profile.
| Code | Cessation Type | Description |
|---|---|---|
| V | Voluntary Cessation | An employee resignation, retirement, domestic or pressing necessity or abandonment of employment |
| I | Ill Health | An employee resignation due to medical condition that prevents the continuation of employment, such as for illness, ill-health, medical unfitness or total permanent disability |
| D | Deceased | The death of an employee |
| R | Redundancy | An employer-initiated termination of employment due to a genuine bona-fide redundancy or approved early retirement scheme |
| F | Dismissal | An employer-initiated termination of employment due to dismissal, inability to perform the required work, misconduct or inefficiency |
| C | Contract Cessation | The natural conclusion of a limited employment relationship due to contract/engagement duration or task completion, seasonal work completion, or to cease casuals that are no longer required |
| T | Transfer | The administrative arrangements performed to transfer employees across payroll systems, move them temporarily to another employer (machinery of government for public servants), transfer of business, move them to outsourcing arrangements or other such technical activities. |
For how STP handles employees who join, change or leave, see STP staff changes.