| ATO - This section records the employee's selections in the TFN declaration
provided when they commence employment. This information is required for
the ATO, and is included in the electronic PAYG
declarations generated byReady Pay. |
| TaxFileNo |
Enter the employee's tax
file number (TFN) as advised on their TFN declaration. Ready Pay validates
TFN's to ensure they are correct.
If you receive an Invalid TFN message, confirm with the employee they have supplied the correct number. Ready Pay will not accept a TFN unless it is valid. |
Step 5 of the Employee Creation Wizard - "Personal Details" ATO section |
| TFN |
Specify their TFN category using the options in the drop-down list.
This field will auto-fill if you have valid TFN's.
EG: 111-111-111 is a temporary TFN if the employee has applied for a TFN.
|
| Country |
Only used for a Working Holiday Maker (WHM). Select the resident country of the employee. |
| TFN Notification |
Select this box if the employee supplied their
TFN when commencing with the company. |
| Resident |
Select this box if the employee answers yes to the question on the TFN Declaration
(resident for tax purposes). |
| Working Holiday Maker |
Tick this for a WHM. This option is only active if the Resident checkbox is off. |
| Claim Tax Free Threshold |
Select this box if the employee answers yes to the question on the TFN Declaration
(claim the tax-free threshold from this employer). |
| Claim Zone or Special Rebate |
Select this box if the employee answers yes to the question on the TFN Declaration
(zone or special tax offset). |
| Rebate |
If the employee is claiming Zone or Special Rebate, enter the annual rebate amount here. |
| Spouse |
Select this box if the employee answers yes to the question on the TFN Declaration
(spouse tax offset). |
| No. Dependants |
Specify the number of dependants this employee has. |
| Super Pension / Annuity |
Select this box if the employee answers yes
to the question on the TFN Declaration (tax offset for annuity). No action needs to be taken in Ready Pay to calculate the entitlement. |
| Basis of Payment |
This relates to the question (basis of payment)
on the TFN Declaration. Select the appropriate basis of payment from the
drop-down list eg: Full Time. |
| Signature Present |
Select this box if the employee has signed
their TFN declaration. |
| Declared Date |
Enter the date on which the employee signed
the declaration. Ready Pay uses this date when generating electronic PAYG
declarations for submission to the ATO. |
| Income Stream Type Code |
This is auto-filled based on what has been entered above for STP2 purposes. |
| Tax Treatment Code |
This is auto-filled based on what has been entered above for STP2 purposes. |
| Tax - This section holds information used by Ready Pay to calculate this employee's tax contributions. |
| Employee Type |
Select the employee type from the list. Most
employees are Individual non-business.
Other options are Labour hire, Contractor Voluntary Agreement Closely Held Payee and Inbound Assignee to Australia |
Step 5 of the Employee Creation Wizard - "Personal Details" Tax section |
| ABN |
Complete only if the employee type is voluntary agreement or contractor. |
| Withholding Rate |
Complete only if employee
type is voluntary agreement or contractor. payroll will calculate withholding tax at this rate. |
| Tax Scale |
Select the applicable tax scale, for example tax free threshold
claimed. If the employee has a HELP or SFSS debt, select the tax scale with the
relevant weighting, for example the Tax Free Threshold Claimed + STSL. |
| Tax Exempt |
Tick this box if the employee is exempt from
paying income tax. Ready Pay will not calculate any tax for this employee when this box is ticked. |
| HELP |
Select this box if the employee has answered
yes to having a HELP, VSL, FS, SSL or AASL debt on the TFN Declaration. (This applies to all the debt types.)
You must also select the appropriate Tax Scale (above) with weighting for STSL |
| Commissioner Rate |
Selecting Voluntary Agreement as Employee Type with a valid ABN will allow this Check Box to be ticked. The ATO has the rate applicable to the payee.
This is a reporting requirement for STP2 to identify that the payee has provided the rate to the payer.
There is no requirement to identify the rate here as it is already known by the ATO.
|
| Tax Averaging |
Select this if the employee's pay varies greatly from pay to pay, for example due to commissions. Tax will be calculated on year-to-date earnings, rather than on the current pay only. This setting is designed to be on or off for the duration of the financial year, and should not be used on an ad-hoc basis. |
| SFSS |
Select this box if the employee has answered
Yes to having a HELP, VSL, FS, SSL or AASL debt on the TFN Declaration.
You must also select the appropriate Tax Scale (above) with weighting for HECS/HELP and/or SFSS. |
| TaxVariation |
Tick this box if the employee has a letter from the ATO stating that they have a tax variation. |
| Start |
Enter the start date given in the ATO letter. |
| Finish |
Enter the finish date specified in the ATO letter. Note that this may be the end of the financial year - the employee may then be given a new letter from the ATO with new information for the next financial year. |
| Rate |
Enter the tax percentage as specified in the employee's ATO letter. |
| Medicare Levy Surcharge Additional Tax |
The Medicare Levy Surcharge is an additional tax on top of the Medicare Levy for Australian taxpayers who are high-income earners and don’t have private hospital cover.
Tick this box if an employee advises they wish to have additional Tax taken.
|
| Tier |
Select the Tier 1, Tier 2, or Tier 3 to calculate the additional tax. |
| Rebates - This section deals with any rebates this employee is claiming.
|
| Rebate |
Click on the drop down to select the type of rebate from the list or click <<Add New>> to create a new rebate type. |
Step 5 of the Employee Creation Wizard - "Personal Details" Rebates section |
| Amount |
Enter the annual amount of the rebate. Ready Pay will apply the correct portion to each pay. |
| Effective Date |
The rebate will take effect in the first payrun with a period end date later than the effective date. |
You should only enter Rebate details if you have received official notification directly from the ATO.