Introduction

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:

1. Navigate to the employee record and then Payroll > Pay Frequency and select “Exclude from Pay Run”

2. Click “OK” on the popup and and save the employee record

   

FEI Tax Paid

When to use

When an employee has an FEI and pays tax on that income, the tax they pay must be reported along with their FEI to prevent the employee from being taxed twice.

How to add to an employee record

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

   

2. Change the Type field to Tax and the Sub Type field to FEI Tax Paid
   

3. step 3

FEI Tax Exempt

When to use

When an employee performs work in another country that is exempt from tax.
Reasons work may be exempt can be found on the ATO website.

How to add to an employee record

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

Customer to set up.