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Tax

This screen contains all taxation information for the selected employee. Here you can enter all PAYG details and all settings used to calculate withholding tax. Rebates can also be managed here.

Open the Employee File.

Viewing or Amending Employee Tax Information:

Once the employee file is open, select the Employee Name on the left.
On the right click on the Tax tab.
Complete the following information as required:

Field	Explanation	Wizard
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 by payroll.
TaxFileNo	Enter the employee's tax file number (TFN) as advised on their TFN declaration. payroll validates TFN's to ensure they are correct. If you receive a warning message, confirm with the employee they have supplied the correct number. If they confirm the TFN, then you are obliged to accept it.	Step 5 of the Employee Creation Wizard - "Personal Details" ATO section
TFN	Specify their TFN category using the options in the drop-down list.
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 question 7 on the TFN Declaration (resident for tax purposes).
Working Holiday Maker	Also known as 'Backpacker Tax'. This option is only active if the Resident checkbox is off.
Claim Tax Free Threshold	Select this box if the employee answers yes to question 8 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 question 10 on the TFN Declaration (zone, spouse or special tax offset).
Rebate	If the employee is claiming Zone or Special Rebate, enter the rebate here.
Spouse	Select this box if the employee answers yes to question 10 on the TFN Declaration (zone, spouse or special tax offset).
No. Dependants	Specify the number of dependants this employee has.
Super Pension / Annuity	Select this box if the employee answers yes to question 9 on the TFN Declaration (tax offset for annuity). No action needs to be taken in payroll to calculate the entitlement.
Basis of Payment	This relates to question 6 (basis of payment) on the TFN Declaration. Select the appropriate basis of payment from the drop-down list.
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. payroll uses this date when generating electronic PAYG declarations for submission to the ATO.
Tax	This section holds information used by payroll 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 and Voluntary Agreement	Step 5 of the Employee Creation Wizard - "Personal Details" Tax section
ABN	Complete only if the employee type is voluntary agreement.
Withholding Rate	Complete only if employee type is voluntary agreement. 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 HECS or SFSS debt, select the tax scale with the relevant weighting, for example the Tax Free Threshold and HECS.
Tax Exempt	Tick this box if the employee is exempt from paying income tax. payroll will not calculate any tax for this employee when this box is ticked.
HELP/HECS	Select this box if the employee has answered 'Yes' at question 11 (a) of the TFN Declaration. (This applies to HELP and HECS.) You must also select the appropriate Tax Scale (above) with weighting for HECS/HELP and/or SFSS.
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' at question 11 (b) of 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.
Rebates	This section deals with any rebates this employee is claiming.
Rebate	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. payroll 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.