Non resident payroll setup (no STP reporting)

Question

We have an employee who lives and works overseas and is NOT AU resident for tax purposes. The ATO have confirmed that we should not be withholding PAYG and SG does not apply.

I want to pay this employee via MYOB payroll to ensure that they receive a payslip (they will need this for lodging taxes etc in their country of residence) and also to record and manage all of their leave entitlements.

I have set up the payroll card with Employment Basis - Other (Not reportable) and new expense accounts specifically linked to the new payroll categories (overseas wages not reportable) but when I go to record the pay I get an STP reporting error:

PaymentsBasisCode Error: Employment Basis Code is invalid (ATO error code: CMN.ATO.PAYEVNTEMP.000272)

From what I can see this might be due to MYOB insisting the hourly paid employees must be linked to the Base Hourly pay wage category (which in turn is linked to STP reporting). I have this category on the employee card but am paying via my new wage category of Wages O/S hourly that has an ATO reporting category of Not Reportable (& exempt from PAYG).

How do I set up the payroll card to just not report the pay through to the ATO via STP?

genreve_s · Answer

Hi V1cki1C,&nbsp;
&nbsp;
Thanks for running me through the situation. Since that employee’s overseas, they’ll need to be set up a bit differently so their pay runs don’t get sent to the ATO.
Quick fix: open their employee card, select “Save and request employee details”, then switch the Employment basis to “Other (not reported)”.&nbsp;
&nbsp;
Regards,
Genreve&nbsp;

v1cki1c · Answer

Thanks Genreve&nbsp;I've already done that &amp; the employment basis is showing as other (no reported) but I'm still getting the error message.&nbsp;

genreve_s · Answer

Hi V1cki1C,&nbsp;
&nbsp;
Thanks for checking in. If the pay run is set to Other (not reported), it should go through without any errors, and you should see an option to skip the declaration. To be safe, try running that employee’s pay run on its own, separate from the others. If the error sticks around, give our support team a shout and we’ll take a closer look.
&nbsp;
Regards,Genreve&nbsp;

v1cki1c · Answer

Yes, I've tried as a separate run and its still giving me the error message.&nbsp; Will refer to support team

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Non resident payroll setup (no STP reporting)

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