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.

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 save the employee record

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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

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

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

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 and the Sub Type field to FEI Tax Exempt

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

Foreign income where no tax is paid

Where an employee works in another country and no amount is withheld for tax in that country, the foreign income is to be reported as regular income using the relevant income type (such as Salary and Wages (SAW)). See the STPv2 guidelines.