To configure allowance pay codes:

1. Select Module > Payroll > Payroll Employee Maintenance from the Main menu.
2. Search for pay codes used for either:
   
   - Qualification/Certificate allowances
   - Task allowances
   - Tool allowances.
   
   
3. Select a pay code in the Pay Code Selector window.
4. Select the income stream type using the Income Stream Type drop-down list.
   
   Note: Salary and Wages is selected by default. Select another income stream type if necessary.
   
   
5. Select one of the following options from the Reporting category drop-down list:
   
   - Allowance - Qualifications/Certificates
   - Allowance - Tasks
   - Allowance - Tools.
   
   
6. Click OK.
7. Repeat steps 3 to 6 to update the remaining pay codes for the current allowance type.
8. Repeat steps 2 to 7 to update additional pay codes for the remaining allowance types. 

To configure paid leave pay codes:

1. Select Module > Payroll > Payroll Employee Maintenance from the Main menu.
2. Search for all pay codes used for paid leave at your organisation.
3. Select a pay code in the Pay Code Selector window.
4. Select the income stream type using the Income Stream Type drop-down list.
   
   Note: Salary and Wages is selected by default. Select another income stream type if necessary.
   
   
5. Select Paid Leave using the Reporting Category drop-down list.
6. Select the relevant paid leave type for the pay code using the Default Paid Leave Type drop-down list. You can select:
    
   - C - Cash out leave in service
   - U - Unused leave on termination
   - P - Paid parental leave
   - W - Workers' compensation
   - A - Ancillary and defence leave
   - O - Other paid leave
   
   Note: The Default Paid Leave Type drop-down list is not displayed until Paid Leave using the Reporting category drop-down list.
   
   
7. Click OK.
8. Repeat steps 3 to 7 for the remaining paid leave pay codes.

To configure overtime pay codes:

1. Select Module > Payroll > Payroll Employee Maintenance from the Main menu.
2. Search for pay codes used for overtime at your organisation.
3. Select a pay code in the Pay Code Selector window.
4. Select the income stream type using the Income Stream Type drop-down list.
   
   Note: Salary and Wages is selected by default. Select another income stream type if necessary.
   
   
5. Select Individual - Gross Overtime using the Reporting Category drop-down list.
6. Click OK.
7. Repeat steps 2 to 6 for the remaining overtime pay codes.

To configure bonuses and commissions pay codes:

1. Select Module > Payroll > Payroll Employee Maintenance from the Main menu.
2. Search for pay codes used for bonuses and commissions at your organisation.
3. Select a pay code in the Pay Code Selector window.
4. Select the income stream type using the Income Stream Type drop-down list.
   
   Note: Salary and Wages is selected by default. Select another income stream type if necessary.
   
   
5. Select Individual - Gross Bonuses and Commissions using the Reporting Category drop-down list.
6. Click OK.
7. Repeat steps 2 to 6 for the remaining bonus and commission pay codes.

To configure directors' fees pay codes:

1. Select Module > Payroll > Payroll Employee Maintenance from the Main menu.
2. Search for pay codes used for directors' fees at your organisation.
3. Select a pay code in the Pay Code Selector window.
4. Select the income stream type using the Income Stream Type drop-down list.
   
   Note: Salary and Wages is selected by default. Select another income stream type if necessary.
   
   
5. Select Individual - Gross Directors' Fees using the Reporting Category drop-down list.
6. Click OK.
7. Repeat steps 2 to 6 for the remaining directors' fees pay codes.

To configure return to work pay codes:

1. Select Module > Payroll > Payroll Employee Maintenance from the Main menu.
2. Search for pay codes used for return to work payments at your organisation.
3. Select a pay code in the Pay Code Selector window.
4. Select the income stream type using the Income Stream Type drop-down list.
   
   Note: Salary and Wages is selected by default. Select another income stream type if necessary.
   
   
5. Select Return to Work using the Reporting Category drop-down list.
6. Click OK.
7. Repeat steps 2 to 6 for the remaining return to work pay codes.

To configure salary sacrifice pay codes:

1. Select Module > Payroll > Payroll Employee Maintenance from the Main menu.
2. Search for pay codes used for either:
   
   - superannuation salary sacrifice
   - other salary sacrifice arrangements (e.g. gym membership).
   
   
3. Select a pay code in the Pay Code Selector window.
4. Select the income stream type using the Income Stream Type drop-down list.
   
   Note: Salary and Wages is selected by default. Select another income stream type if necessary.
   
   
5. Select an option from the Reporting Category drop-down list. You can select either:
   
   - Salary Sacrifice - Super for pay codes used for superannuation salary sacrifice
   - Salary Sacrifice - Other for pay codes used for other salary sacrifice arrangements (e.g. gym membership).
   
   
6. Click OK.
7. Repeat steps 3 to 6 to update the remaining pay codes for the current salary sacrifice type.
8. Repeat steps 2 to 7 to update additional pay codes for the remaining salary sacrifice type. 

Pre-tax deduction pay codes

Pre-tax deduction pay codes require an income stream type. By default, the Income Stream Type field in Pay Code Maintenance is automatically populated with the Salary and Wages (SAW) income stream type, so you will need to update any pay codes that need a different income stream type (e.g. Closely Held Payees). 

To configure pre-tax deduction pay codes:

1. Select Module > Payroll > Payroll Employee Maintenance from the Main menu.
2. Select Deduction - Pre-Tax (non-superannuation) from the Pay Code Type drop-down list.
3. Click OK.
4. Select a pay code.
5. Select the required income stream using the Income Stream Type field.
   
   Note: Salary and Wages is selected by default. Select another income stream type if necessary.
   
6. Repeat steps 4 and 5 for additional pay codes as necessary. 

After-tax deduction pay codes

After-tax deduction pay codes do not require an income stream type. You need to check that the Income Stream Type field is blank for all pay codes with the Deduction - After-tax (non-superannuation) pay code type.

To configure after-tax deduction pay codes:

1. Select Module > Payroll > Payroll Employee Maintenance from the Main menu.
2. Select Deduction - After-Tax (non-superannuation) from the Pay Code Type drop-down list.
3. Click OK.
4. Select a pay code.
5. Ensure that the Income Stream Type field is blank.
6. Repeat steps 4 and 5 for the remaining pay codes. 

The following pay codes do not require an income stream type:

• Superannuation - Employee Voluntary After-Tax
• Superannuation - Employer Contributed.

You need to check that the Income Stream Type field is blank for all pay codes with either of these pay code types.

To check employee voluntary after-tax and employer contributed pay codes:

1. Select Module > Payroll > Payroll Employee Maintenance from the Main menu.
2. Select Superannuation - Employee Voluntary After-Tax from the Pay Code Type drop-down list.
3. Click OK.
4. Select a pay code.
5. Ensure that the Income Stream Type field is blank.
6. Repeat steps 4 and 5 for the remaining pay codes.
7. Click Criteria.
8. Select Superannuation - Employer Contributed from the Pay Code Type drop-down list.
9. Repeat steps 3 to 6.

Employee terminations must be reported using Australian Government cessation codes. These cessation codes are mapped to termination reasons using the ExternalSystemType and ExternalSystemCode fields of the luPayrollTerminationReason lookup table.

Note: Synergetic maps the cessation codes during installation, but the mapping must be checked to ensure it is correct.

Tax scales have been updated to use a four character code that combines with additional fields on the Tax tab of Payroll Employee Maintenance (see below) to define the tax treatment of each employee.

These tax scales can be viewed using the luPayrollTaxationRate lookup table. We recommend checking this lookup table to familiarise yourself with the new tax scales and understand how they relate to the previous tax scales (see the LegacyTaxScale field).

Employees terminated during the 2022 payroll year must be terminated using termination reasons linked to the new Australian Government cessation codes. We have already mapped the records of the luPayrollTerminationReason lookup table to the new cessation codes, so now we will select a valid reason for each terminated employee on the General tab of Payroll Employee Maintenance.

To check whether valid termination reasons are selected for terminated employees:

1. Select Module > Payroll > Payroll Employee Maintenance from the Main menu.
2. Select 2022 in the Payroll Year field.
3. Select Yes in the Terminated Employees field.
   
   
   
   
4. Click OK.
5. Click the General tab.
6. Select an employee using the Payroll Employee Selector.
7. Select a termination reason using the Reason drop-down list.
8. Repeat steps 5 and 6 for the remaining employees.  

Synergetic automatically converts existing taxation details to the STP2 specification during the upgrade, but you must check the following fields for each employee to ensure the conversion was successful:

• Tax scale
• Medicare Levy Surcharge
• Medicare Levy Reduction
• Tax Treatment Code
• Employment Basis
• Super Liability/OTE Submit
• Income Type.

To check employee taxation details have been correctly converted:

1. Select Module > Payroll > Payroll Employee Maintenance from the Main menu.
2. Click OK.
3. Click the Tax tab.
4. Select an employee using the Payroll Employee Selector.
5. Check whether:
   
   - Tax Scale field is populated with a valid (four character) STP2 tax scale code
   - Medicare Levy Surcharge and Medicare Levy Reduction fields are populated
   - Tax Treatment Code populates correctly
   
     Note: This read-only field is a combination of the values selected for the Tax Scale, Medicare Levy Surcharge and Medicare Levy Reduction.
   
   - Employment Basis field is populated with the employment of the payroll employee (e.g. Full Time Employee)
   - Super Liability/OTE Submit field is populated, if necessary
   - Income Type is populated with Salary or Wages.
   
   
   
   
6. Repeat steps 4 and 5 for the remaining employees.

To check whether tax rates are correct:

1. Select Module > Payroll > Payroll Configuration Maintenance from the Main menu.
2. Click the Tax Rates tab.