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Re: Personal services attributed income and Single Touch Payroll

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Hi Community,

 

I am trying to figure out whether STP is applicable when payment and super liability relate to Personal Services Attributed Income (a payment type of the "PAYG payment summary - business and personal services income").

 

This is what I have found so far:

 

In the ATO website, "Mandatory reporting" section does not include any payment type of the "business and personal services income".

 

"Voluntary reporting" section includes 3 payment types of the "business and personal services income":

  • "A payment that is covered by a voluntary agreement" (Business and personal services income – 003).
  • "A payment under a labour hire arrangement or a payment specified by regulations" (Business and personal services income – 001 or 002).

"Cannot be reported" section includes the following:

  • "Alienated personal services payments" (Business and personal services income – 004).

 

Question 1:  Is "Alienated personal services payments" the same as "Personal services attributed income" (the fourth payment type in the "PAYG payment summary - business and personal services income")?

 

Question 2:  If the answer is Yes for the above question, then does it mean STP is not applicable in this case, and no changes to the way of reporting?

 

Question 3:  What about the super guarantee component?  Every time a "Personal services attributed income" payment is made, the super guarantee contribution liability is also calculated.  Is this super liability relevant to STP even though the PSI is not?

 

Thanks in advance for your help!!

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Hi @Dario,

 

Thanks for your questions!

 

Alienated personal services payments are a specific type of personal services income, so provided that you do not have any of those payments, you should be able to report all of your personal services income payments using STP, if you wish to do so.

 

As this is voluntary reporting, if you choose not to report the payments using STP then your usual payment summary and superannuation obligations will still apply. If you are reporting the Personal Services Income using STP, then you must report the super liability with each pay event as well.

 

Hope this helps,

 

Rachael B.

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Hi @Dario,

 

Thanks for your questions!

 

Alienated personal services payments are a specific type of personal services income, so provided that you do not have any of those payments, you should be able to report all of your personal services income payments using STP, if you wish to do so.

 

As this is voluntary reporting, if you choose not to report the payments using STP then your usual payment summary and superannuation obligations will still apply. If you are reporting the Personal Services Income using STP, then you must report the super liability with each pay event as well.

 

Hope this helps,

 

Rachael B.

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Hi Rachel B

 

If you do report this income through STP how does the ATO then know that it is personal services/business income rather than standard PAYG income?  We have both types of payments and I am not sure that our software can report it properly.

 

Thanks

Charlotte B

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Hi @CharlotteB,

 

Thanks for getting in touch!

 

As mentioned, business and personal services income payments can be reported via STP as a voluntary option. If you choose not to report these payment through STP, you'll need to report the information in a PAYG payment summary - business and personal services income form and report it in your annual PAYG report to us.

 

If you wish to report these payments via STP but you're not sure how to report using your STP software, it's best to contact them directly.

 

Thanks, JodieH.

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Thanks Jodie

All the software companies I've spoken to are unable to answer the question.  It seems as if since they've moved to STP all they understand is standard payments.  Is there an ATO lit of STP providers?

 

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Hi @CharlotteB,

 

Sorry to hear that you've had that experience!

 

You can find an extensive list of STP enabled software providers here. This list does not specify which providers support the reporting of personal services income, so it may take you some time to locate a suitable product.

 

I hope this is of some help, but please let me know if you have any other questions.

 

Rachael B.