One of the new STP Phase 2 requirements is to report on the employment basis of each individual. For example, the change of employment circumstances may assist the ATO to better assess the correctness of PAYG amounts being withheld for a casual employee that has multiple employers, so as to potentially avoid a tax debt at the end of the financial year. For Services Australia, the change of employment circumstances may assist to determine eligibility for government programs and services as well as benefits and payments.
The employment basis is the equivalent of the 'employment type' field located in the employee's Tax File Declaration screen.
To assign the correct employment basis, follow the below process:
Step 1 - Click on "Employees"
Step 2 - Select the employee from the all employees list
Step 3 - Click on "Taxes"
Step 4 - Click on the "Employment basis" and select the appropriate employment type
Step 5 - Click on "Save"
Below is the video for your reference
The definition of each valid option currently supported in the Payroo is as follows:
Full Time: A person who is engaged for the full ordinary hours of work as agreed between the employer and employee and/or set by an award, registered agreement or other engagement arrangements. A full-time employee has an expectation of continuity of the employment or engagement on either an ongoing or fixed-term basis.
Part-Time: A person who is engaged for less than the full ordinary hours of work, as agreed between the employer and employee and/or set by an award, registered agreement or other engagement arrangements. A part-time employee has an expectation of continuity of the employment or engagement on either an ongoing or fixed-term basis.
Casual: A person who does not have a firm commitment in advance from an employer about how long they will be employed or engaged, or for the days or hours they will work. A casual employee also does not commit to all work an employer may offer. A casual employee has no expectation of continuity of employment or engagement.
Labour Hire: A contractor who has been engaged by an employer to work for their client. The hours of work and duration of engagement are not factors for consideration. This will include contractors who have provided a voluntary agreement with a payer that arranges for persons to perform work or services, or performances, directly for clients of the entity.
Other (Not Reported) Non-Employee (Superannuation only): A payee who is not in the scope of STP for payments but may be included in STP for voluntary reporting of superannuation liabilities only. Assign the employment type 'Superannuation Income Stream' to any employee that meets this definition.
Voluntary Agreement: A contractor with their own ABN and is an individual person, rather than a business. The hours of work and duration of engagement are not factors for consideration. There are no immediate plans to cater to independent contractors. This means this employment type option will not be catered for in the platform in the short to medium term.
If you have any feedback or questions, please email us at support@payroo.com.au