Employment Basis

(from the ATO's Business Implementation Guide)

The purpose of this field is to not only satisfy the requirements to provide details of the TFND form, but to inform the other data supplied in the Pay Event. This field becomes critical to provide context to the changes in the financial amounts for each Pay Event and Update Event for government recipients of this data.

The values permitted in the Employment Basis code (PAYEVNTEMP282) are:

• Full time – a person who is engaged for the full ordinary hours of work as agreed between the Payer and the Payee and/or set by an award, registered agreement or other engagement arrangement. A full-time Payee has an expectation of continuity of the employment or engagement on either an ongoing or fixed term basis

• Part time – a person who is engaged for less than the full ordinary hours of work, as agreed between the Payer and the Payee and/or set by an award, registered agreement or other engagement arrangement. A part time Payee has an expectation of continuity of the employment or engagement on either an ongoing or fixed term basis

• Casual – a person who does not have a firm commitment in advance from a Payer about how long they will be employed or engaged, or for the days or hours they will work. A casual Payee also does not commit to all work a Payer may offer. A casual Payee has no expectation of continuity of the employment or engagement

• Labour Hire – a contractor who has been engaged by a Payer to work for their client. The hours of work and duration of engagement are not factors for consideration
  
  
• Voluntary Agreement – a contractor with their own ABN and is an individual person. The hours of work and duration of engagement are not factors for consideration
  
  
• Death Beneficiary – the recipient of an ETP death beneficiary payment who is either a dependant, non-dependant or trustee of the estate of the deceased Payee
  
  
• Non-Employee – a Payee who is not in scope of STP for payments but may be included in STP for voluntary reporting of superannuation liabilities only.

The business rules for employment basis are:

1. The employment basis must be reported in every Pay Event and Update Event.
   
   
2. The employment basis must be reflected as at the pay/update date for Pay Events and current FY Update Events and the run date/time stamp for the prior FY Update Events.
   
   
3. The values reported for employment basis must align with income type for default values for voluntary agreement and death beneficiaries.
   
   
4. The value reported for non-employees may only be reported for Payees with no income reported for the financial year and a value for super liability amount only.
   
   
5. If the Payee no longer has an employment/engagement relationship with the Payer for the period reported, report the value from the last employment/engagement relationship.
   
   
6. For those Payees who have concurrent employment with the Payer that includes different types of employment bases, then report the basis in priority of 1) full time, then 2) part time, then 3) casual. If the concurrent employment includes these work patterns plus another type of employment basis (such as labour hire), then report the other type.

STP Creator - MYOB Users

In STP Creator, the above information is entered/selected on the Employment Details screen, accessible from the Payee Details screen. STP Creator will extract the details from the Employee's Card in MYOB and this can be used to pre-fill the selections. Also if changes are made to the Employee Card, you will be required to update the Employment Details screen to ensure it reflects the changes.

STP Creator - non MYOB Users

In STP Creator, the above information is entered/selected on the Employment Details screen, accessible from the Payee Details screen. .