Allocate STP Codes to your Allowances and Deductions

!If you are unsure what STP Code to assign to your Allowances, please visit Withholding for allowances on the ATO’s website.

!We also recommend contacting your Accountant / Bookkeeper for further advice if you are unable to determine the correct set up (after referring to the ATO’s website).

1. Click Pay Types from the Side Bar
2. Navigate to Pay Type, click on the drop-down menu and change to Allowance.
3. Select the Allowance to edit (click once to highlight).
4. Click Edit.
   1. If the Tax Treatment is set to Non Reportable (The ATO publishes an annual Ruling that set out the reasonable allowances amounts)
      1. Leave STP Code as Not Set.
      2. Ensure Taxable, Include in W1 and Payroll Tax are not selected.
   2. If the Tax Treatment is set to Show Allowance in Gross Payment box
      1. Leave STP Code as Not Set.
   3. If the Tax Treatment is set to Show Allowance separately in Allowance box
      1. Navigate to STP Code.
      2. Click on the drop-down menu and select the appropriate STP Code: Car, Transport, Laundry, Meals, Travel or Other,
   4. If the Tax Treatment is set to Show Allowance separately in Allowance box and tax the allowance at the Rate detailed in the Notice of Variation
      1. Navigate to STP Code.
      2. Click on the drop-down menu and select the appropriate STP Code: Car, Transport, Laundry, Meals, Travel or Other,
5. Click Save then Exit.
6. Repeat the above steps for each Allowance.

1. Next, navigate to Pay Type, click on the drop-down menu and change to Deduction.
2. Select the Deduction to edit (click once to highlight).
3. Click Edit.
   1. If the Deduction is for Fees or Workplace Giving.
      1. Navigate to STP Code.
      2. Click on the drop-down menu and select the appropriate STP Code.
   2. If the Deduction is for anything other than Fees or Workplace Giving (eg. Concessional (Before Tax) and Non-Concessional (After Tax) Superannuation Contributions),
      1. Leave STP Code as Not Set.
      2. Navigate to Tax Treatment
      3. Select DO NOT itemise this Deduction for reporting to the ATO.
4. Click Save then Exit.
5. Repeat above steps for each Deduction.