PAYG Payment Summary Generator

What is a PAYG payment summary?

A PAYG (Pay As You Go) payment summary is a document that records the gross payments made to an employee and the tax withheld during a financial year. It was formerly called a group certificate. Since Single Touch Payroll (STP) became mandatory for most employers from 1 July 2019 (and for small employers from 1 July 2020), the ATO's income statement in myGov has replaced the payment summary for standard employment. Employers reporting through STP are no longer required to issue payment summaries to employees.

That said, payment summaries are still needed in specific circumstances, and employees sometimes request a formatted PDF for mortgage applications, rental applications, or their own records. This generator creates a properly formatted document with all the fields the ATO requires: payer and payee details, gross payments, total tax withheld, allowances, deductions, reportable fringe benefits, reportable employer superannuation contributions (RESC), and lump sum payment categories.

When do you still need a payment summary?

Three situations still require a PAYG payment summary rather than relying on the STP income statement:

• Closely held payees. Directors, shareholders, and family members of private companies who are not yet reported through STP may still need a payment summary. The ATO granted extensions for closely held payees, but the concession has been narrowing each year.
• Foreign employment income. If an employee earned income from foreign employment that was subject to PAYG withholding, the payment summary captures this separately for their tax return.
• Employee requests. Banks and property managers regularly ask for a payment summary as proof of income. While an ATO income statement serves the same purpose, not all institutions accept it yet. A formatted PDF payment summary is often the path of least resistance.

What each field means

Gross payments is the total salary, wages, commissions, bonuses, and director's fees paid before tax. It includes overtime and shift loadings. It does not include superannuation contributions (employer or salary-sacrificed) unless they are reportable employer super contributions (RESC).

Total tax withheld is the sum of all PAYG withholding amounts deducted from the employee's pay across the financial year. This should reconcile to the amounts reported on your BAS (label W1 for gross payments, label W2 for amounts withheld).

Allowances cover separately identified payments like car allowances, travel allowances, tool allowances, and laundry allowances. These are included in gross payments but reported separately because the employee may be able to claim a deduction for the expense the allowance covers.

Reportable fringe benefits (RFB) is the grossed-up taxable value of fringe benefits provided to the employee where the total exceeds AU$2,000. RFB does not create additional income tax for the employee, but it is used in income tests for Medicare levy surcharge, HELP/HECS repayments, child support assessments, and government benefit eligibility. Getting this figure wrong can affect the employee's obligations in those areas.

Reportable employer superannuation contributions (RESC) covers employer super contributions above the mandatory Superannuation Guarantee rate. If the employer contributes 12% when the SG rate is 12%, RESC is zero. If the employer contributes 15%, the extra 3% is reportable. Salary-sacrificed super is also reportable.

Lump sum payment categories

• Lump Sum A: Back payments of salary or wages owed for prior financial years. Taxed at marginal rates but the employee can request the ATO to assess the payment across the years it relates to, which often reduces the tax.
• Lump Sum B: Back payments where the employer was not obliged to pay during the relevant prior year. Less common. Typically arises from court orders or industrial tribunal decisions.
• Lump Sum D: The tax-free component of a genuine redundancy or early retirement scheme payment. The tax-free limit for 2025-26 is AU$12,524 plus AU$6,261 for each completed year of service. Amounts above this limit are taxed as an employment termination payment (ETP).
• Lump Sum E: Back payments of salary or wages arising from a return-to-work arrangement. Reported separately for the same reason as Lump Sum A.

Worked example

A small construction company in Sydney employs an office manager on a salary of AU$85,000. During the 2025-26 financial year:

• Gross payments: AU$85,000
• Total tax withheld: AU$18,067 (based on resident tax rates, no HELP debt)
• Car allowance: AU$3,600 (AU$300/month for using their car for site visits)
• Reportable fringe benefits: AU$3,800 (grossed-up value of a gym membership and meal entertainment)
• RESC: AU$2,550 (employer contributes 15% super, SG rate is 12%, so 3% of AU$85,000 is reportable)

The car allowance of AU$3,600 is already included in the AU$85,000 gross figure. It is reported separately so the employee knows they can claim a deduction for actual car expenses if they exceed the allowance. The RFB of AU$3,800 does not change the employee's income tax, but it increases their income for Medicare levy surcharge purposes to AU$88,800 (gross + RFB), which may trigger the surcharge if they do not hold private health insurance.

Common mistakes on payment summaries

Including super in gross payments. Employer superannuation contributions are not included in gross payments on the payment summary. Only salary-sacrificed super is included (because it was salary before the sacrifice arrangement redirected it). This is the most common error on manually prepared payment summaries.

Missing the RFB reporting threshold. Reportable fringe benefits are only reported when the grossed-up taxable value exceeds AU$2,000 for the FBT year (1 April to 31 March, not the financial year). If the total is AU$1,950, nothing is reported. If it is AU$2,050, the full grossed-up amount is reported. The threshold is a reporting trigger, not an exemption.

Not reconciling to the BAS. The total gross payments and total tax withheld on all payment summaries issued should reconcile to the totals reported on your quarterly or monthly BAS (labels W1 and W2). If they do not match, either the payment summaries or the BAS contain an error. The ATO cross-references these figures automatically.

Frequently asked questions

What is the difference between a payment summary and an income statement?

An income statement is the ATO's term for the year-end tax information reported through STP. It appears automatically in the employee's myGov account and pre-fills their tax return. A payment summary is the older paper or PDF equivalent. Since STP became mandatory, the income statement has replaced the payment summary for most standard employment situations.

When do you still need a PAYG payment summary?

Payment summaries may still be needed for closely held payees (directors and family members of small businesses not yet on STP), foreign employment income, or when an employee needs a formatted record for mortgage or rental applications where the institution does not accept an ATO income statement.

What are reportable fringe benefits?

Reportable fringe benefits are the grossed-up taxable value of fringe benefits provided to an employee where the total exceeds AU$2,000. They do not create additional income tax but are used for income tests affecting Medicare levy surcharge, HELP repayments, child support, and government benefit eligibility. The employer calculates and reports this amount.

Do I still need to give employees a payment summary if I use STP?

No, for most employees. If you report through STP, the ATO makes an income statement available in your employees' myGov accounts. You are not required to provide a separate payment summary. The exceptions are closely held payees not yet on STP and certain foreign employment situations.

What are lump sum payments on a payment summary?

Lump sum payments are back payments or termination amounts that are reported separately because they may be taxed differently from regular salary. Lump Sum A covers back pay for prior years. Lump Sum B covers back pay where no obligation existed in the prior year. Lump Sum D is the tax-free component of a genuine redundancy. Lump Sum E covers return-to-work back payments.