Select the pay items reportable at W1 on your activity statements

Choose the pay items used to calculate W1 - Total salary, wages and other payments on your activity statements and activity reports.

Items such as pre-tax super contributions are excluded from W1 automatically.

Mark an earnings rate as reportable in W1

  1. In the Settings menu, select Payroll Settings.
  2. Click the Pay Items tab.
  3. Click Earnings.
  4. Click the pay item you want to include as W1 (for example, Ordinary Hours).
  5. Click the Reportable as W1 on Activity Statement checkbox.

    Included W1 Item

  6. Click Save.

Mark a deductions type as excluded from W1

Excluded deductions will reduce the amount reportable at W1.

  1. From Settings, click General Settings.
  2. Under Features, click Payroll Settings.
  3. Click the Pay Items tab.
  4. Click Deductions.
  5. Click the pay item you want to exclude from W1 (for example, Salary Sacrifice).
  6. Click the Excluded from W1 on Activity Statement checkbox.

    Excluded W1 Item

  7. Click Save.

Contact the ATO if you're unsure what to include or exclude from W1.

Completing the PAYG withholding labels (ATO website)