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Foreign Employment Income (FEI) is reported via Single Touch Payroll (STP) to the Australian Taxation Office (ATO) and is recorded as Year-To-Date (YTD) Pay Details, not as part of the pay run process.

The key point for the reporting of FEI is that this is to reporting foreign income for an employee being paid in australia, there is no processing via Pay Run its the case of creating the FEI amounts calculated and paid elsewhere and creating them as YTD PSD to then include on the STP reporting in AU for the tax year. To do this you are not altering the employee setup.

Setup

Edit the employee record to exclude from Pay Run:

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1. Navigate to the employee record and then Payroll > Payslip Detail > New Payslip YTD Detail

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2. Change the Type field to Tax and the Sub Type field to FEI Tax Paidstep 3

3. Set Income Type to Foreign Employment Income (FEI) and the AU Income Country to the country the employee worked in

4. Add amount, set pay date and save

FEI Tax Exempt

When to use

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1. Navigate to the employee record and then the Payroll > Payslip Detail > New Payslip YTD Detail

2. Change the Type field to Tax

3. Change the Sub Type field to FEI Tax Exempt

STP Reporting

FEI Paid Leave

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