STP V2 Employee Integration / CSV Mapping Changes
- Paul Hooker (Unlicensed)
Overview
The introduction of Single Touch Payroll V2 has brought updates to the employee record for AU employees. This article provides details on these changes to assist with updating CSV imports, and 3rd Party Integrations.
The changes can be summarised as follows:
Addition of new AU tax fields
Deprecation of existing AU tax fields
Change in business logic for setting tax scales
The impact of this will mean that you will need to:
Understand some fields are now deprecated and will not produce the expected behaviour in terms of setting employee tax scale
Additional STP V2 employee fields now need to be set
Certain employee tax scales are being deprecated
- 1 Overview
- 2 Employee Field Changes
- 3 Change to Employee Tax Scale
- 4 Integration Use Cases
- 5 Termination Reason Codes
- 6 Data Dictionary
- 6.1 Tax Category
- 6.2 Tax Option
- 6.3 Medicare Surcharge
- 6.4 Medicare Exemption
- 6.5 Medicare Reduction
- 6.6 Employment Basis
- 6.7 Income Stream
- 6.8 Termination Reason
- 7 Frequently Asked Questions:
Employee Field Changes
The following table outlines the field changes on the employee record.
Field Name | Field ID | Field Type | Change | Details |
|---|---|---|---|---|
Has STSL | custentity_pr_au_has_stsl | Checkbox | Add | Replaces the deprecated “HELP/VSL/FS/SSL/TSL TYPE” field and is used to set the employee tax scale |
Tax Treatment Code | custentity_pr_au_tax_code | Text | Add | This is a string that represents 1 char for each of the following fields: |
Tax Category | custentity_pr_au_tax_category | List / Record | Add |
|
Tax Option | custentity_pr_au_tax_option | List / Record | Add |
|
Medicare Levy Surcharge | custentity_pr_au_medicare_surcharge | List / Record | Add | Replaces “APPLY MEDICARE LEVY SURCHARGE”, Field would only be set based on a Medicare Levy Variation Form. |
Medicare Levy Exemption | custentity_pr_ml_exemption | List / Record | No Change | Field would only be set based on a Medicare Levy Variation Form. |
Medicare Levy Reduction | custentity_pr_au_medicare_reduction | List / Record | Add | New option Field would only be set based on a Medicare Levy Variation Form |
Employment Basis | custentity_pr_au_employment_basis | List / Record | Add | The employment basis automatically sources from the “Payroll Employment Status” field for Full Time, Part Time and Casual. |
Income Stream | custentity_pr_au_income_stream | List / Record | Add | New field |
Home Country (WHM Only) | custentity_pr_au_income_country | List / Record
| Add | Currently only required for Working Holiday Makers, sources onto payslip details. |
Income Type | custentity_pr_income_type | List / Record | Deprecated | Automatically sourced from Resident Status: |
HELP/VSL/FS/SSL/TSL TYPE | custentity_pr_help_sfss_var | List / Record | Deprecated | No longer used see has STSL checkbox. |
APPLY MEDICARE LEVY SURCHARGE | custentity_pr_include_mls | Checkbox | Deprecated | No longer used see medicare levy surcharge. |
CLAIM SENIOR AUSTRALIAN TAX OFFSET | custentity_pr_claim_senior_tax_offset | Checkbox | Deprecated | No longer used senior couple information is now represented by:
|
Senior Couple Status | custentity_pr_senior_couple_status | Checkbox | Deprecated | |
Termination Type | custentity_pr_termination_reason | List / Record | Updated Values | We have added additional options and split Normal Termination (Dismissal) into its own type |
Payroll Employment Status | custentity_employment_status | List / Record | Updates Type | Change from Custom list to Custom Record to allow defaulting of employment basis. No change required |
Change to Employee Tax Scale
With the introduction of our STP V2 release the employee tax scales have been simplified the key changes:
Update the client side logic that sets Employee Tax Scale to work with the new Tax Category / Tax Option
Deprecate duplicate legacy tax scales
Simplify Working Holiday Maker Tax Scale and support Un registered
Remove Flat Tax Scale
Supported Tax Scales
With the introduction of our STP V2 release the employee tax scales have been simplified the following table are now supported, these should be referenced by external ID in integrations as the internal ids may differ between accounts.
Employee Tax Scale | Resident Status | External ID | Status |
|---|---|---|---|
Tax-free threshold claimed (2) | Resident | 2 | No Change |
Tax-free threshold claimed (2a) with STSL debt | Resident | 2a | No Change |
No tax-free threshold (1) | Resident | 1 | No Change |
No tax-free threshold (1a) with STSL debt | Resident | 1a | No Change |
No tax file number (4) | Resident | 4 | No Change |
Foreign resident (3) | Non-Resident | 3 | No Change |
Foreign resident (3a) with STSL debt | Non-Resident | 3a | No Change |
No tax file number (4a) | Non-Resident | 4a | No Change |
Full Medicare exemption (5) | Resident | 5 | No Change |
Full Medicare exemption (5a) with STSL debt | Resident | 5a | No Change |
Half Medicare exemption (6) | Resident | 6 | No Change |
Half Medicare exemption (6a) with STSL debt | Resident | 6a | No Change |
Senior Australian:Couple | Resident | s3 | No Change |
Senior Australian:Illness-Separated Couple | Resident | s2 | No Change |
Senior Australian:Single | Resident | s1 | No Change |
Working Holiday Maker (WHM-UREG) | Working Holiday Maker | hu | New |
Working Holiday Maker (WHM-REG) | Working Holiday Maker | hr | New |
Seasonal Worker Programme | n/a | wp | New |
Nil Tax Withheld | Non Resident | nil |
|
Manual Tax Component | n/a | mt | New |
Merged Tax Scales
The following employee tax scale are now deprecated, integrations and csv imports should be updated to match the supported list above but will be supported for the 22/23 Tax Year.
Deprecated Tax Scale | Migrate to Tax Scale |
|---|---|
No tax-free threshold (1b) with STSL debt | No tax-free threshold (1a) with STSL debt |
No tax-free threshold (1c) with STSL debt | |
Tax-free threshold claimed (2.) | Tax-free threshold claimed (2) |
Tax-free threshold claimed (2.a) with STSL debt | Tax-free threshold claimed (2a) with STSL debt |
Tax-free threshold claimed (2b) with STSL debt | |
Tax-free threshold claimed (2.b) with STSL debt | |
Tax-free threshold claimed (2c) with STSL debt | |
Tax-free threshold claimed (2.c) with STSL debt | |
Foreign resident (3b) with STSL debt | Foreign resident (3a) with STSL debt |
Foreign resident (3c) with STSL debt | |
Full Medicare exemption (5b) with STSL debt | Full Medicare exemption (5a) with STSL debt |
Full Medicare exemption (5c) with STSL debt | |
Half Medicare exemption (6b) with STSL debt | Half Medicare exemption (6a) with STSL debt |
Half Medicare exemption (6c) with STSL debt |
Deprecated Tax Scales
Flat Tax Scales (12) | ||
50% Flat Tax Rate | 30% Flat Tax Rate | 15% Flat Tax Rate |
45% Flat Tax Rate | 25% Flat Tax Rate | 10% Flat Tax Rate |
35% Flat Tax Rate | 20% Flat Tax Rate | 5% Flat Tax Rate |
7% Flat Tax Rate | 47% Flat Tax Rate | 49% Flat Tax Rate |
Redundant WHM Threshold Scales (4) | ||
H - Working Holiday Maker to 45000 (WHM1) | H - Working Holiday Maker 45001 to 120000 (WHM2) | H - Working Holiday Maker 120001 to 180000 (WHM3) |
H - Working Holiday Maker over 180000 (WHM4) |
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Integration Use Cases
For integrations and CSV Imports the following examples provide the most common variations that need to be supported, and less common including the medicare levy variations.
Common
TFN | Resident Status | Claim Tax Free | Cat (Char 1) | Option (Char 2) | Has STSL (Char 3) | MLS (Char 4) | MLE (Char 5) | MLR (Char 6) | Tax Code | Employee Tax Scale |
|---|---|---|---|---|---|---|---|---|---|---|
Valid | Resident | Yes | Regular (R) | Tax Free Threshold (T) | No | None | None | None | RTXXXX | Tax-free threshold claimed (2) |
Valid | Resident | No | Regular (R) | No Tax Free Threshold (N) | Yes | None | None | None | RNSXXX | No tax-free threshold (1a) with STSL debt |
Valid | Working Holiday Maker | No (N/A) | Working Holiday Maker (H) | Registered Payer (R) | No (N/A) | None | None | None | HUXXXX | Working Holiday Maker (WHM-REG) |
Valid | Non Resident | No (N/A) | Foreign Resident (F) | Foreign Residency (F) | Yes | None | None | None | FFSXXX | Foreign resident (3a) with STSL debt |
Invalid (000000000) | Resident | No (N/A) | No TFN (N) | Australian Resident (A) | No (N/A) | None | None | None | NAXXXX | No tax file number (4) |
Invalid (000000000) | Non Resident | No (N/A) | No TFN (N) | Non Resident (F) | No (N/A) | None | None | None | NFXXXX | No tax file number (4a) |
Less Common Medicare Variation
Medicare variations are only available to employee’s who are Resident, and only the surcharge tier can be claimed if the employee is not claiming the tax free threshold. As a result the typical variations are as follows:
TFN | Resident Status | Claim Tax Free | Cat (Char 1) | Option (Char 2) | Has STSL (Char 3) | MLS (Char 4) | MLE (Char 5) | MLR (Char 6) | Tax Code | Employee Tax Scale |
|---|---|---|---|---|---|---|---|---|---|---|
Valid | Resident | No | Regular (R) | No Tax Free Threshold (N) | Yes | 1% (Tier 1) | None | None | RNS1XX | No tax-free threshold (1a) with STSL debt |
Valid | Resident | Yes | Regular (R) | Tax Free Threshold (T) | No | 1% (Tier 1) | None | None | RTX1XX | Tax-free threshold claimed (2) |
Valid | Resident | Yes | Regular (R) | Tax Free Threshold (T) | No | None | Full Exemption | None | RTXXFX | Full Medicare exemption (5) |
Valid | Resident | Yes | Regular (R) | Tax Free Threshold (T) | No | None | Half Exemption | None | RTXXHX | Half Medicare exemption (6) |
Valid | Resident | Yes | Regular (R) | Tax Free Threshold (T) | No | None | Half Exemption | 1 Children (1) | RTXXH1 | Half Medicare exemption (6) |
In Summary:
If an employee is making a Medicare Levy Surcharge they cannot also claim an exemption or reduction
If an employee is claiming a full or half exemption they cannot pay a surcharge
If an employee is claiming a full exemption they cannot claim a medicare levy reduction
Termination Reason Codes
With the introduction of the STP V2 release the termination reason codes custom list has been updated to reflect a more granular approach of reporting termination reasons. The supported list is now as follows:
Data Dictionary
Tax Category
Custom Record: AU Tax Treatment Category (customrecord_au_tax_treatment_category) | ||
|---|---|---|
| ||
Internal ID | Name | Notes |
1 | Regular | Set For Resident |
4 | Seniors & Pensioners (S) |
|
5 | Working Holiday Makers (H) | Set For Working Holiday Maker |
6 | No TFN (N) | Set For No TFN |
7 | ATO-Defined (D) |
|
8 | Voluntary Agreement (V) |
|
10 | Foreign Resident (F) | Set For Non Resident |
Tax Option
Custom Record: AU Tax Treatment Option (customrecord_au_tax_treatment_option) | ||
|---|---|---|
The Tax Option is filtered by the Tax Category Option, attempting to set a tax option which is not available for a tax category will result in an invalid record ref error | ||
Internal ID | Name | Tax Category Available For |
2 | Tax Free Threshold (T) | Regular (R) |
3 | No Tax Free Threshold (N) | Regular (R) |
4 | Single (S) | Seniors & Pensioners (S) |
5 | Member of Couple (M) | Seniors & Pensioners (S) |
6 | Illness Seperated Couple (I) | Seniors & Pensioners (S) |
7 | Registered Payer (R) | Working Holiday Makers (H) |
8 | Unregistered Payer (U) | Working Holiday Makers (H) |
9 | Australian Resident (A) | No TFN (N) |
10 | Downwards Variation (V) | ATO-Defined (D) |
11 | Death Beneficiary (B) | ATO-Defined (D) |
12 | Non Employee (Z) | ATO-Defined (D) |
13 | Commissioners Instalment Rate (C) | Voluntary Agreement (V) |
14 | No Commissioners Instalment Rate (O) | Voluntary Agreement (V) |
16 | Foreign Residency (F) | Foreign Resident (F),No TFN (N),Working Holiday Makers (H) |
Medicare Surcharge
Custom Record: AU Medicare Surcharge Tier (customrecord_au_medicare_surcharge_tier) | ||
|---|---|---|
| ||
Internal ID | Name | Notes |
1 | None (default) |
|
2 | Tier 1 (1%) |
|
3 | Tier 2 (1.25%) |
|
4 | Tier 3 (1.5%) |
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Medicare Exemption
Custom List: Medicare Levy Variable Type (customlist_pr_ml_var_type) | ||
|---|---|---|
| ||
Internal ID | Name | Notes |
1 | None (default) |
|
2 | Full Exemption |
|
3 | Half Exemption |
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Medicare Reduction
Custom List: AU Medicare Reduction Code (customlist_au_medicare_reduction_code) | ||
|---|---|---|
| ||
Internal ID | Name | Notes |
1 | None (default) |
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2 | Spouse (0) |
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3 | 1 Children (1) |
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4 | 2 Children (2) |
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5 | 3 Children (3) |
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6 | 4 Children (4) |
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7 | 5 Children (5) |
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8 | 6 Children (6) |
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9 | 7 Children (7) |
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10 | 8 Children (8 ) |
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11 | 9 Children (9) |
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12 | 10+ Children (A) |
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Employment Basis
Custom Record: ATO STP Type Code (customrecord_stp_type_code) | ||
|---|---|---|
The STP Type Code record is used for multiple types, the only values shown here are those for type code “Employment Basis” | ||
Internal ID | Name | Notes |
1 | Full time (F) | Set from Employment Status Full Time |
2 | Part time (P) | Set From Employment Status Part Time |
3 | Casual (C) | Set From Employment Status Casual |
4 | Labour hire (L) | Set From Employment Status Labour Hire |
5 | Voluntary agreement (V) |
|
6 | Death beneficiary (D) |
|
7 | Non-employee (N) |
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Income Stream
Custom Record: ATO STP Type Code (customrecord_stp_type_code) | ||
|---|---|---|
The STP Type Code record is used for multiple types, the only values shown here are those for type code “Income Stream Type” | ||
Internal ID | Name | Notes |
15 | Salary and wages (SAW) | Set For All But Working Holiday Maker |
16 | Closely held payees (CHP) | Not Supported |
17 | Inbound assignees to Australia (IAA) | Not Supported |
18 | Working holiday makers (WHM) | Set For Working Holiday Maker |
19 | Seasonal worker programme (SWP) | Not Supported |
20 | Foreign employment income (FEI) | Not Supported |
21 | Joint petroleum development area (JPD) | Not Supported |
22 | Voluntary agreement (VOL) | Not Supported |
23 | Labour hire (LAB) | Not Supported |
24 | Other specified payments (OSP) | Not Supported |
Termination Reason
Custom List: Termination Reason (customlist_pr_termination_reason) | ||
|---|---|---|
| ||
Internal ID | Name | Notes |
1 | Normal Termination (Resignation/Retirement) | Existing but Dismissal now split out into own option |
2 | Genuine Redundancy | No Change |
3 | Invalidity | No Change |
4 | Approved Early Retirement Scheme | No Change |
5 | Death of Employee | No Change |
6 | Normal Termination (Dismissal) | New |
7 | Contract Cessation | New |
8 | Transfer | New |
Frequently Asked Questions:
Q: We currently use a 3rd Party Integration to set employee TFN, resident status, claim tax free threshold and student loan do we need to update our integration ?
A: Yes, at a minimum you need to ensure that you are setting the new student loan checkbox, and setting the new Tax Category, Tax Option and Tax Treatment Code fields.
Q: The employee tax scale field on the employee record is disabled, how can I change it ?
A: The field can no longer be set manually, and will automatically update based on other tax fields.
Q: Why are the fields still visible in the Deprecated field group ?
A: This is to help with migration, in a later release these fields will be made inline or removed altogether
Q: Are the deprecated fields automatically updated from the fields ?
A: Only the Income Type field is set as its sourced from the Resident Status field
Q: I can’t see the new fields on my employee form how do I make them visible ?
A: If you are using an administrator role or you have a custom payroll employee form (not advisable), the new fields will not have been automatically added. Either change your form to the payroll bundle employee form or get your NetSuite administrator to update the record.
Q: Why are these new fields not mandatory?
A: We are not enforcing STP V2 compliance, so whilst we are trying to ensure fields are populated to make the process of migration cleaner, we are not enforcing. This will change in a future release.
Q: Why was the employee record I am looking at not migrated?
A: The bundle migration process only updated active employees at the point of bundle update, the employee record will either not have an active payslip detail in the current tax period, or has a combination of employee tax scale, resident status, claim tax free threshold that is invalid (for example: employee is non resident but claiming a tax free threshold)
Q: I used to be able to select a flat tax rate in the employee tax scale list how do I do this now ?
A: We have deprecated the use of flat tax rates, if you need to support something non-standard you should create a manual tax component ( Note: ATO now requires an employee with a downward variation to be reported with a seperate tax category and option)
Q: As the Income Type field is now deprecated how are thresholds on WHM working ?
A: The application of working holiday maker tax scales now happens dynamically at process / recalculate. The YTD earnings are calculated at this point and the appropriate flat percentage is applied. If you have opted into STP V2 on the branch there two options:
Registered Payer (this is what has always happened in the past)
Non Registered Payer (this applies a different tax scale)
Q: I need more time to update our integration what can we do in the meantime?
A: The easiest approach would simply be to stop sending tax information, and enter on the employee form directly where the logic will apply to ensure appropriate fields are set.
Q: Are TFN declaration forms being updated ?
A: There are no changes currently. STP v2 no longer reports any details from the TFN declaration form, so the record in NetSuite is now only there as reference.