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GeraldineF(Enthusiast)Enthusiast
4 June 2021

Hi Team,

In FY2019/2020, we reported the below earnings to one of our employees:

Payee Gross PaymentsPayee Total INB PAYGW Amount
562,081.15 238,319.00

Then, we received an instruction from our client's 3rd party KPMG to reduce the Gross as per below:

Payee Gross PaymentsPayee Total INB PAYGW Amount
511,307.00 238,319.00

The reduction in Gross of $50,774.00 is to be reported as FEI income, including the tax withheld of $12,693.00 (in the Philippines):
Payee Gross Payments Foreign EmploymentPayee Foreign Employment Income Foreign Tax PaidPayee Total FEI PAYGW Amount
50,774.00 12,693.00

It was explained by KPMG that the bonus amount ($50,774.00) that we paid and taxed in Australia payroll, was also taxed in the Philippines. And in order to claim a foreign tax credit in Australia for the tax paid in the Philippines, we need to amend STP as per above.

The question is: In the STP reporting it seems like the "Payee Total FEI PAYGW Amount" is also required to be reported. However, we are not sure what this column pertains to. Would you be able share some explanation regarding this?

Thanks,

Geraldine

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CaroATO(Community Support)Community Support
9 June 2021

Hi @GeraldineF,

Thank you for your patience while we researched your question.

The Payee Total FEI PAYGW Amount column relates to FEI assailable income paid to payees. They are Australian tax residents, subject to tax in another country, for work preformed in that country, if the qualification period is met.

Take care and stay safe.

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Most helpful reply

CaroATO(Community Support)Community Support
9 June 2021

Hi @GeraldineF,

Thank you for your patience while we researched your question.

The Payee Total FEI PAYGW Amount column relates to FEI assailable income paid to payees. They are Australian tax residents, subject to tax in another country, for work preformed in that country, if the qualification period is met.

Take care and stay safe.

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