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Basketball's avatar
Basketball
Experienced Cover User
2 years ago

Working directors wages - Gross Payments in STP2

Hi there,

Just need confirmation please that Working directors salary is classified as ATO Gross Payments category for STP2?

Thanks

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  • gavin12345's avatar
    gavin12345
    Ultimate User
    2 years ago

    Hi Basketball 

     

    Best to check this sort of thing with your Accountant or tax adviser. Generally speaking (and this may or may not apply in your situation) a salary (whether paid to a director or any other employee) is assigned to Gross Payments. Directors Fees on the other hand should be assigned to Director's Fees.

     

    The Income Type for a Director (on Taxes tab of Payroll Details on Employee Card) might be Salary and Wages or Closely Held Employee. Again best to check this with your tax adviser.

     

    Regards

    Gavin