Description
To support the ATO requirement to report tax treatment for PAYG Payees who are subject to Seniors/Pensioners Tax Offset (SAPTO), new settings have been created in the Pay Module Payee record. These will apply where the payee is: 66 years or older at the end of a financial year
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may be eligible for a seniors and pensioners tax offset (SAPTO) for that financial year.
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The offset that applies depends on the payee’s status which can be one of the followingThat is, such payees may be eligible to a reduced rate of tax withholding, where the extent of the reduction is dependent on whether the payee is:
single
part of a couple
part of an illness separated couple.
The new fields include:
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Description
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Details
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Seniors & Pensioners Tax Offset
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If a payee is eligible for SAPTO and their tax withholding is being reduced accordingly, it is a requirement under STP Phase 2 to report a tax treatment code that identifies that the payee is subject to SAPTO and which of the three abovementioned categories apply to the payee.
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This setting is used to report the relevant tax treatment code in the STP report.
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To cater for this, a new option labelled Seniors & Pensioners Tax Offset has been added to the PAYG Tax Details section of the Payroll > Payee > Payee Entry screen, as shown in the example below.
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When the Seniors & Pensioners Tax Offset option is ticked, a secondary field labelled Status is enabled and it becomes mandatory to select an option from the field to indicate if the payee is single, part of a couple or part of an illness separated couple.
The Seniors & Pensioners Tax Offset option is only available if the payee’s tax scale is one of the following:
Tax Scale 2
Tax Scale 5
Tax Scale 6.
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This setting does not affect the tax calculation process, so it is editable even if the corresponding payee validity period has been used in a pay batch.
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Status
Indicates the payee’s marital status.
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Flagging a payee as being subject to SAPTO allows FastTrack360 to automatically report the relevant tax treatment code |
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This field is mandatory where you have ticked ‘Seniors & Pensioners Tax Offset’.
You will need to define one of the Payee as one of following options:
Single
Couple
Illness Separated Couple
As above, this setting does not impact the tax calculation process, so it can be edited at any time.
In the example Payee record below the ‘Seniors & Pensioners Tax Offset’ setting has been ticked and the Status has been defined as Couple.
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Please be aware that the new fields added to the Payee PAYG Tax Details section are for STP reporting purposes only. The application of the relevant tax offset needs to be calculated manually and then applied via a manual tax adjustment in a pay batchATO via STP reporting to indicate that the payee is subject to SAPTO. However, it is important to note that FastTrack360 will not calculate and apply the relevant tax offset to the payee’s tax withholding automatically when tax is calculated at the Tax pay batch stage. Therefore, the Seniors & Pensioners Tax Offset option should only be enabled if tax is being manually adjusted at the Tax pay batch stage to apply the relevant tax offset. |
We have also provided additional search options to allow you to find Payees that payees who have the ‘Seniors & Pensioners Tax Offset' setting applied, via the Search Payee > Payroll Details Tab, Tax Details section.
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