PAYG Payment Summary

This ATO compliance method has been replaced by Single Touch Payroll (STP) reporting.
Do not use this feature unless you have approval from the ATO to do so instead of using STP.

Prior to the Single Touch Payroll Employers are required to submit a PAYG Payment Summary Statement each financial year electronically using the Australian Taxation Office’s Online Services or via an approved storage device. This Wizard allows you to prepare the PAYG Payment Summaries for employees.

NOTE: You must use Payroll Transactions in Saasu to enter Pays. Any payroll transactions that have been entered using other transaction types will not be captured in PAYG Payment Summaries.

Which Method should you use?

  1. Reports to the ATO electronically…
    This is for Printing plain paper PAYG Payment Summaries to give to your employees. You also produce an “EMPDUPE” file and send it to the ATO on electronic media such as a CD-ROM. Alternately, you can use the ATO’s Online Services such as ECI to submit information. You will need to have registered and have received your security key to use it so leave yourself plenty of time to meet deadlines.
  2. Tax Accountant reporting to the ATO electronically…
    For Tax Accountants who are preparing Plain Paper Payment Summaries using Saasu and Reporting electronically to the ATO using Saasu to create an EMPDUPE file.

Mapping Your Pay Items

Payment summaries display total for pay items in specific fields in the form according to the laws and regulations for your industry and specific situation. We provide some default mappings but recommend that you seek advice from a registered tax agent or the ATO as to how these mappings should be for your business.

Verify the Payer (Employer) Details

The Payer is the Organisation who is issuing the Payment Summaries to their Employees. It is the Tax Entity who pays employees and withholds PAYG Withholding Tax on their payments.

Organisation Name *The Organisation (Tax Entity) who is employing and withholding tax for employees for whom you are issuing PAYG Payment Summaries.
Trading Name *The name the “Organisation” trades as.
ABN *The validity (not accuracy) of the ABN will be tested automatically.
ABN BranchIf you do not operate multiple branches in your business this will automatically be set to “1”. Otherwise input a branch number. If a business has one ABN but multiple branches, each branch will have an individual branch number.
Email AddressContact email for your organisation.
Street Address Line 1 *If you have more than 3 lines for the Address field then you will need to select which you prefer to be the first line.
Street Address Line 2If you have more than 3 lines for the Address field then you will need to select which you prefer to be the second line.
City *City, Suburb or Town of residence for the organisation.
State *Must be one off, ACT, NSW, NT, QLD, SA, TAS, VIC, WA, or OTH if your company is a non-resident of Australia.
CountryLeave this field blank if your company is an Australian resident. Else, complete this field.
Postcode *Four digit postcode is only accepted. If you are from another country it will automatically set to 9999.

* = required

The Payer Contact is the person who is preparing this PAYG Payment Summaries. It is a person whom the ATO can contact if they have any queries regarding the information provided.

Select a Contact for the ATO *Choose a Contact for the ATO from your Contacts List. Usually an authorised representative allowed to communicate with the ATO on matters for this organisation.
First Name *pre-set from the contact you have selected.
Last Name *pre-set from the contact you have selected.
Phone *pre-set from the contact you have selected. An Australian phone number is expected
Faxpre-set from the contact you have selected

* = required

Verify Employee Details

The Employee is the person your organisation is issuing “PAYG Payment Summary – Individual Non-Business” forms to. They are Payees who you have recorded payroll transactions for this Financial Year.

Employee Name *First Name and Last Name are required in that order. Second name is optional. Include it in the First Name field if you wish to include it.
TFN *The Employees Tax File Number that the employee provided your organisation when they completed their TFN Declaration form on entry to duty at your organisation. Saasu will check the validity but not accuracy of the TFN.
Street Address Line 1 *If you have more than 3 lines for the Address field then you will need to select which you prefer to be the first line.
Street Address Line 1If you have more than 3 lines for the Address field then you will need to select which you prefer to be the second line.
City *The City, Suburb or Town of residence for the employee (payee).
State *Either ACT, NSW, NT, QLD, SA, TAS, VIC, WA, or OTH if the employee (payee) is a non-resident of Australia.
Postcode *Four digit postcode are only accepted. If your employee (payee) is resident in a country other than Australia it will be set to 9999.
RFBAReportable Fringe Benefits Amount (‘RFBA’) is to be completed if the total taxable value of certain fringe benefits provided to the employee (payee) in the FBT year (1 April to 31 March) exceeds the ATO published threshold.

TFN for specific circumstances

These might be where your employee hasn’t provided a tax file number, you are doing some tests or other reasons. The ATO has designed in these TFN’s to facilitate:

111 111 111has not made a TFN Declaration, but 28 days have not passed since hire.
333 333 333under 18 years of age and earns $112 or less a week.
444 444 444Commonwealth Government pensioner payee.
000 000 000payee chooses not to quote a TFN and has not claimed an exemption from quoting a TFN, or does not fit into any of the above categories.

Printing the employees PAYG Payment Summaries

  1. Click the “View/Print Employee PAYG Payment Summaries” link to load them into Adobe Acrobat Reader.
  2. Review each Payment Summary for each employee individually for accuracy. Note that the ATO requires that you to give every employee who has transactions in a payroll financial year a PAYG Payment Summary.
  3. Click the print icon to print these Payment Summaries to Plain Paper (Note: Do not use letterhead or coloured paper).
  4. Have the appropriate Authorised Signature sign each form after they have verified the information in them against any other Payroll reports and/or the totals on this Screen as required.

NOTE: PAYG figures may differ slightly from Payroll entries due to reporting requirements. All PAYG figures report in whole dollars. Any cents will be dropped.

Getting Your Payment Summary Information to the ATO

Create and Save the EMPDUPE file by clicking the “Save EMPDUPE File to Send to ATO” link. Options to submit electronically include:

  1. ATO portal > Using the business portal to lodge a file.
  2. Lodge via your accounting advisor
  3. Legacy system > ECI software facility

Payment Summary Best Practise Checklist

Before beginning the process of producing PAYG Payment Summary check these things:

  • Completed all pays for the financial year.
  • Payroll summary report for the full year matches what you submitted to the ATO via BAS’s.
  • Employees details are current. Goto employees in the main menu to update them.
  • Ex employees have a termination date in their employee details area.
  • Your organisation details are current. Goto Settings > Main > Manage File Identity
  • Have the written approvals needed to pay employees untaxed amounts. e.g. Allowances.


Excluding Deductions

Certain Deduction pay items may need to be excluded from the gross payments reported in the PAYG payment summary for an employee. Mapping a Deduction pay item to the Gross Payments field removes it from Gross Payments (the deduction being a mathematical subtraction).

To exclude Deductions pay items from Gross Payments:

  1. Click Reports in the main menu.
  2. Click PAYG Payment Summary in the report list.
  3. Select the appropriate reporting method and financial year.
  4. Click Next.
  5. When you are in the mappings screen, select Gross Payments from the pick list for the particular Deduction Pay item you want excluded from gross payments.

If you map a Deduction pay item to the Deductions or Workplace Giving summary fields (rather than Gross Payments), the YTD amount for the pay item will display under additional details in the PAYG Payment Summary as specified by the ATO. If you map it to Gross Payments, it’s YTD amount will be deducted from the gross payments.

Saasu saves your mappings every time you click Next in the Mappings screen. If you realise your PAYG payment summaries are incorrect, late, or lost, visit the ATO help page for further instructions.

Non-Deductible Allowance and Expense

Allowances or expenses paid to cover non-deductible items for an employee can be items such as normal home-to-work transport expenses. Verify with your Taxation Advisor what is deductible and non-deductible for your specific circumstance. When adding a Payroll transaction, there is a section called Other Pay Types. In this section, you will find Non-Deductible Allowance & Expense.

For example, you want to deduct $200/month from an employee’s salary to pay for their motor vehicle lease. The vehicle is owned by the employee and isn’t being used for work purposes in this situation (or if it is, the employee may be claiming a tax deduction for the work use portion themselves in their own tax return).

Before the employee had the vehicle:

$2000Base Pay
$2000Gross Pay (i.e. pay before tax)
$260Less Tax Withheld (PAYG withholding tax)
$1740Net Pay After Tax

After the employee had the vehicle:

$1800Base Pay
$200Non-deductible Allowance & Expense
$2000Gross Pay (i.e. pay before tax)
$260Less Tax Withheld (PAYG withholding tax)
$1740Net Pay After Tax