Payment types (disaggregation of gross)¶

In the earlier version of Single Touch Payroll (STP), you reported one big "gross" figure for each employee. STP Phase 2 changed that. Now the pay must be split into separate payment types. The ATO calls this disaggregation of gross — a formal way of saying "break the total into parts".

Each part is reported on its own. Together they add up to the pay, but the ATO can now see what each amount was for.

In one line

STP Phase 2 splits pay into separate payment types instead of one gross figure — this is called disaggregation of gross.

Why this matters¶

Different kinds of pay are treated differently — for tax, for super, and by Services Australia when it works out welfare payments. Reporting one lump gross figure hid those differences. Splitting the pay into labelled parts lets each amount be handled correctly. Getting each amount into the right payment type keeps your employee's records accurate.

What you will learn¶

What disaggregation of gross means
The main payment types reported in STP Phase 2
How salary sacrifice is reported

Understanding the concept¶

The main payment types, in plain terms, are:

Gross (ordinary earnings) — the residual amount of normal pay left once the separately itemised parts below are taken out.
Paid leave — leave paid to the employee, such as annual leave, personal leave and long service leave.
Allowances — extra amounts such as travel, laundry, tools or task allowances, each reported on its own.
Overtime — pay for hours worked outside ordinary hours.
Bonuses and commissions — performance or one-off payments.
Directors' fees — payments to a company director.
Salary sacrifice — an amount an employee agrees to swap from their pay (for example, into super, or for other benefits like a novated lease).

Salary sacrifice is reported differently from the rest. It is a separate positive amount. Because of that, all the other payment types are reported at their pre-sacrifice values — that is, the amounts before any salary sacrifice was taken out.

For accountants & bookkeepers

Salary sacrifice is a discrete payment type reported as a positive amount, with types S (superannuation) and O (other employee benefits). All other payment types are reported at their pre-sacrificed YTD values. Directors' fees are reported at the full pre-sacrifice value. The ATO allows certain payment types to hold negative YTD amounts when a correction produces one, but the sum of the payment types less the salary sacrifice amount must be zero or positive.

Example¶

Maya earns ordinary wages, takes some annual leave, works overtime, and salary sacrifices $200 each pay into super. In STP Phase 2 her employer reports her ordinary earnings, her paid leave and her overtime as separate payment types — each at the value before her sacrifice. The $200 sacrifice is reported on its own as a positive salary sacrifice amount.

Common mistakes¶

Reporting one combined gross figure — Phase 2 needs pay split into payment types.
Reporting other amounts after taking out the sacrifice — the other types are reported at their pre-sacrifice values.
Treating salary sacrifice as a deduction — it is a separate positive payment type.

How this works in myaccountant¶

In the app — you manage pay items under Pay items. Each item is tied to a fixed pay-item type behind the scenes, so when you run a pay it lands in the right payment type automatically. Renaming an item does not change where it is reported.

Key points¶

Disaggregation of gross means splitting pay into separate payment types.
The main types include gross, paid leave, allowances, overtime, bonuses and commissions, directors' fees, and salary sacrifice.
Salary sacrifice is reported as a separate positive amount.
All other payment types are reported at their pre-sacrifice values.
myaccountant routes each pay item to the correct payment type for you.

Learn next¶

General information only — not tax, super or financial advice.

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