This income type relates to income paid to payees for work performed in Australia, excluding income earned via other income types. Unless otherwise identified, you would classify most employees as salary and wages. This is the most common income type. There is no requirement to assign a country code or additional settings to this income type.

A closely held employee is someone directly related to the entity from which they receive payments, such as family members of a family business, directors or shareholders of a company, or beneficiaries of a trust.

There is no requirement to assign a country code to this income type. Once you select this income type, you will need to choose the reporting option you want to use for this employee on Employment Hero Payroll classic, as explained in this article.

The ATO identifies a working holiday maker as a foreign resident employee working in Australia on a Visa subclass 417 (Working Holiday) or 462 (Work and Holiday) only. You must link employees classified as working holiday makers to the country of their home country, i.e. the country of the employee’s visa.

When employees declare they are a working holiday maker in their tax file declaration and select their home country, this would then flow over to the employee’s pay run details tab.

Employees that are employed by an Australian entity, and are Australian tax residents but receive paid income that is subject to tax in another country for work performed in that country, would fall under this category.

Employees classified as foreign employment must also have their income linked to the host country of the foreign country where the employee is working, for the qualifying period.

You would assign the country code assigned for this income type at the location level as opposed to the individual employee level. Please ensure you assign this employee to a location in a foreign country. You would manage locations in Employment Hero Payroll classic.

You would use this category when you have an employee employed by an offshore entity, seconded to work in Australia and where they receive payment of all or part of their base salary and other remuneration by said offshore entity. You must assign employees classified as inbound assignees to a foreign (overseas) entity in Employment Hero Payroll classic.

These employees are engaged in regional programmes for government-approved employers, administered by the Department of Employment, Skills, Small and Family Business. This does not include workers under the Pacific Labour Scheme.

It does not include tax residents of Papua New Guinea or Kiribati AND in Australia for less than 90 days in the financial year, as there is no PAYG withheld and therefore not in scope of STP. There is no requirement to assign a country code to this income type.

You would use this category when employees belong to a business that arranges for persons to perform work or services, or performances, directly for clients of the entity. This pertains to income for contractors only, not employees. There is no requirement to assign a country code to this income type.

This income type relates to individuals who receive any of the following payments as specified by regulation 27 of the Taxation Administration Regulations 2017:

• Payments for tutorial services that are provided to improve the education of Indigenous people and receive financial support directly or indirectly by the Commonwealth;
• Payments for translation and interpretation services provided for the Translating and Interpreting Service (also known as TIS) conducted by the Department administered by the Minister administering the Migration Act 1958;
• Payments under a contract to an individual engaged as a performing artist to perform in an activity in which the individual (i) endorses or promotes goods or services, or (ii) appears or takes part in an advertisement - unless the individual is engaged primarily because he or she is a sports person;
• Payments of green army allowance within the meaning of the Social Security Act 1991.

This pertains to a written agreement between a payer and a contractor payee to bring work payments into the PAYGW system. The payer does not have to withhold amounts for payments they make to contractors.

However, the payer and a contract worker (payee) can agree to withhold an amount of tax from each payment they make to the contractor. The contractor must have an ABN and is an individual person. We do not support this income type in Employment Hero Payroll classic.