Previously, 

These 

• Pay Codes for Deductions and Superannuation do not need Income Stream
• Taxable Pay Codes where the Income Stream is not Salaries and Wages
• Pay Codes for Leave
  • Reporting Category
  • Default Payment

Pay Codes for Allowances (as per PowerPoint suggestions)

Checking 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 check 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.
6. Repeat steps 4 and 5 for the additional pay codes as necessary. 

Checking 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 check 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. 

Checking salary sacrifice superannuation pay codes

Pay codes with the Superannuation - Salary Sacrifice pay code type require an income stream type. Additionally, you need to select a report category of either:

• Reportable Employer Super Contribution
• Salary Sacrifice - Super.

To check salary sacrifice superannuation pay codes:

1. Select Module > Payroll > Payroll Employee Maintenance from the Main menu.
2. Select Superannuation - Salary Sacrifice 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.
6. Select one of the following options from the Reporting Category drop-down list:
   
   • Reportable Employer Super Contribution
   • Salary Sacrifice - Super.
   
   
7. Repeat steps 4 and 5 for the additional pay codes as necessary. 

Checking employee voluntary after-tax and employer contributed superannuation 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.

Paid leave pay codes must have the Paid Leave reporting category. Additionally, a default paid leave type must be selected using the Default Paid Leave Type drop-down list.

To check whether paid leave pay codes are correctly configured:

1. Select Module > Payroll > Payroll Employee Maintenance from the Main menu.
2. Search for the pay codes used by your organisation for paid leave.
3. Select a pay code.
4. Select Paid Leave using the Reporting category drop-down list.
5. Select a default paid leave type using the Default Paid Leave Type drop-down list.
6. Repeat steps 3 to 5 for the remaining pay codes.
   
   Note: The Default Paid Leave Type drop-down list is not displayed until Paid Leave using the Reporting category drop-down list.

These 

• Pay Codes for Deductions and Superannuation do not need Income Stream
• Taxable Pay Codes where the Income Stream is not Salaries and Wages
• Pay Codes for Leave
  • Reporting Category
  • Default Payment

Pay Codes for Allowances (as per PowerPoint suggestions)

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.

Review the Pay Codes used and update where new Pay Codes have been created per the STP 2 guidelines