Over the last week, we have released an update to our Study and Training Support Loan (STSL) feature on our Payroll Platform. Read on below to see the details of what this change entails.
Users can now choose whether STSL calculations use taxable earnings or repayment income.
- Repayment income: Is taxable earnings plus any amount of salary sacrificed to super (RESC) and any exempt foreign employment income.
- Taxable earnings: Are the gross earnings paid to employees less any salary sacrifice amounts and earnings that are tax exempt.
Based on the most recent guidance from the ATO, you calculate STSL on an employee's taxable earnings. However, we recognise some customers have sought their own advice and calculate STSL based on repayment income.
For this reason, there is the capability in the system for users to choose whether they want to calculate STSL on either taxable earnings or repayment income. This is to be configured individually for each employee with an STSL debt.