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Max Ciereszko

Max Ciereszko

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Benefits

This enhancement adds the ability to identify payees who are eligible for the Seniors & Pensioners Tax Offset so that If a payee is subject to SAPTO and their tax withholding is being manually adjusted to account for the offset, this enhancement allows the relevant tax treatment can to be reported to the ATO via STP reporting if a payee’s tax withholding is being adjusted to apply the offsetPhase 2 to inform why the tax withholding is lower than what it otherwise would be.

Click here for more information about reporting tax treatment codes in STP Phase 2.

Configuration

On upgrade to V12.17, the ‘Seniors Seniors & Pensioners Tax Offset' setting option is available in Payee Record for PAYG Payees, in and can be enabled in the PAYG Tax No section. By default, this item is not ticked and these settings can be updated at any time in the existing payee. Where ticked the Status value must be applied to one of the following options:

  • Single

  • Couple

  • Illness Separated Couple

The SAPTO values can be edited even where the Payee’s corresponding validity period has been included in a pay batch.

Where set this information will be included in the STP information reported to the ATO for reporting purposesDetails section of the Payroll > Payee > Payee Entry screen if the payee’s tax scale is set to Tax Scale 2, 5 or 6.

Info

To be subject to SAPTO, a payee must be an Australian resident, must provide a TFN and must be claiming the tax-free threshold. Therefore, Seniors & Pensioners Tax Offset option is available only if the tax scale that is selected is Tax Scale 2, 5 or 6.

On enabling the Seniors & Pensioners Tax Offset option, the secondary field Status is enabled, and it is mandatory to select the SAPTO status that applies to the payee (i.e. single, part of a couple, part of an illness separate couple), which identifies the extent of the tax offset that is being applied to the payee.

Because the Seniors & Pensioners Tax Offset option does not automatically affect tax calculation in FastTrack360, it is possible to toggle the Seniors & Pensioners Tax Offset option on or off without adding a new validity period to the Payee record.