Important notice

Information provided by Deputy is intended for general guidance purposes only and is not a substitute for professional legal or financial advice. Deputy does not accept liability for actions taken based on this information.
Employers are responsible for ensuring their employees are paid correctly in line with the applicable award/s, industrial instrument/s and relevant employment agreements.
For specific issues or if you are unsure about your employee/s’ entitlements, please consult a legal, financial or employment relations specialist. Deputy does not offer advice on employment law or taxation matters, including payroll specifics.

This article provides information of each Class and STP Category and how it operates in Deputy Payroll.

Class
STP Category

Class

Here is an overview of each Class and how it operates in Deputy Payroll:

Deputy's naming convention	Ordinary hours	Overtime hours	Leave entitlements	Super guarantee*	Tax
Normal	✅	❌	✅	✅	✅
Overtime	❌	✅	❌	⚠️	✅
Bonus	❌	❌	❌	✅	✅
Extra	❌	❌	❌	❌	✅
Allowance	❌	❌	❌	❌	✅
Tax Free Allowance	❌	❌	❌	❌	❌
Reimbursement	❌	❌	❌	❌	❌

Note: This chart outlines the treatment of the extra payment type you select. For example,
When the class selected is Normal, payment of this will be treated as ordinary hours and not overtime hours, will accrue leave, will have superannuation applied to any payments of the rule, and will have PAYG withholding considered in the payment of the rule.

In comparison, when you select Bonus, the rule will be treated as a bonus; not ordinary hours, not overtime hours, and will not accrue leave, but will have superannuation applied to any payments of the rule and will have PAYG withholding considered in the payment of the rule.

Note: By default, Overtime payments will not earn superannuation, but you can change this in the employee's profile in the Payroll section.

Note: This chart is a guide only. Deputy does not provide advice on employment law or taxation matters, including payroll specifics. Please seek professional advice from your legal/tax adviser to validate the approach for the specific circumstances of your business.

STP Category

Here is an overview of each Class and how it operates in Deputy Payroll.

Please ensure that you refer to the Single Touch Payroll guide or the ATO website for assistance with selecting the correct category.

Type	Title	ATO brief description
Normal earnings	Gross	Include all salary, wages, bonuses, and commissions paid to the employee This will go towards their Income Type, eg SAW (Salary and Wages) or WHM (Working Holiday Maker) amounts
	Exempt Foreign Income	Income that was paid to the employee while working abroad, review the ATO rules behind this.
	Foreign Tax	Tax that was paid to foreign countries, review the ATO rules behind this.
	Directors Fees	Payments made to directors
	RESC	Reportable Employer Super Contributions
	Skip STP Reporting	The payment will not be included in STP reporting, this can be used for a range of reasons, such as director drawings, making corrections, etc.
Allowances	Cents per KM	Car expense allowance.
	Laundry	Laundry allowances.
	Overtime Meal	Award overtime meal allowance.
	Award Transport Payments	Award transport payments up to reasonable amounts.
	Domestic or Overseas Travel	Domestic or overseas travel allowance above the reasonable limit and all overseas accommodation allowances.
	Tool	Deductible allowances to compensate an employee who provides their own tools.
	Tasks	Activities that involve additional responsibilities, eg higher duties allowance, confined spaces allowance, dirty work, height money, first aid, etc.
	Qualifications or Certificates	Maintaining a qualification that is evidenced by a certificate, licence or similar, for example allowances to cover registration fees, insurance, licence fees, etc.
	Other	All other allowances for expected deductible expenses.
Leave	Other Paid - Annual, Personal, RDO, TIL etc	Annual, Personal, RDO, TIL, etc.
	Cash Out Leave in Service	Leave that is paid out above the standard work hours.
	Paid Parental	Paid Parental.
	Workers Compensation	Workers Compensation.
	Ancillary and Defence	Ancillary and Defence.
	Unused Leave on Termination	Leave paid out on Termination.
Termination (ETP)	Type R - Taxable	ETP made because of one of the following: early retirement scheme, genuine redundancy, invalidity, or compensation for personal injury, unfair dismissal, harassment, or discrimination.
	Type R - Tax-Free	As above line except for tax-free component.
	Type O - Taxable	Other ETP not described by R (for example: golden handshake, gratuity, payment in lieu of notice, payment for unused sick leave, or payment for unused rostered days of
	Type O - Tax-Free	As above line except for tax-free component.
	Type S - Taxable	ETP code R payment received in the current year and received another ETP (code R or code O), or a transitional termination payment, in an earlier income year for the same termination of employment.
	Type S - Tax-Free	As above line except for tax-free component.
	Type P - Taxable	ETP code O payment received in the current year and received another ETP (code R or code O), or a transitional termination payment, in an earlier income year for the same termination of employment.
	Type P - Tax-Free	As above line except for tax-free component.
	Type D	Death benefit ETP paid to a dependent of the deceased.
	Type B	Death benefit ETP paid to a non-dependant of the deceased and a termination payment was made to the non-dependant in a previous income year for the same termination.
	Type N	Death benefit ETP paid to a non-dependant of the deceased.
	Type T	Death benefit ETP paid to a trustee of the deceased's estate.
Lump Sum	Lump A - Type R	Type R = Where payment was for a genuine redundancy, invalidity or under an early retirement scheme. Lump A = The amount paid for unused long service leave that accrued after 15 August 1978 but before 18 August 1993; unused holiday pay and other leave-related payments that accrued before 18 August 1993 or unused long service leave accrued after 17 August 1993 or unused holiday pay or related payments, where the amount was paid in connection with a payment that includes or consists of a genuine redundancy payment, an early retirement scheme payment or the invalidity segment of an employment termination payment or superannuation payment.
	Lump A - Type T	Type T = Where payment was not a payment for a genuine redundancy, invalidity or under an early retirement scheme. Lump A = Description as above.
	Lump B	The amount paid for unused long service leave that accrued before 16 August 1978.
	Lump D	The amount of genuine redundancy payment or early retirement scheme payment below the tax-free threshold.
	Lump E	The amount of back payment received, including salary or wages that accrued in a period of more than 12 months before the date of payment. Lump Sum Type E must include the Year This is done by adding a @{year} to the payment Title Title example Lump E @2017
	Lump W	A return to work amount paid to induce an employee to resume work (for example, to end industrial action or to return from working for another employer). These payments have a different tax rate to other payments.

Important Note: Deputy does not provide advice on employment law or taxation matters, including payroll specifics. Please seek professional advice from your legal/tax adviser if you are unsure what to select in these fields.

It is your responsibility to ensure that you are correctly classifying and reporting payment types through Single Touch Payroll. It is also your responsibility as an employer to ensure that you are paying your employees correctly in line with applicable award/s and industrial instrument/s and so it is important that you carefully review (and if necessary, make any adjustments to) the payslips generated for each of your team members before "completing" the pay run.

Additionally you may want to visit the ATO website for assistance with selecting the correct class and STP category.

Class

STP Category

Related articles