Description
Payees who are 66 years or older at the end of a financial year may be eligible for a seniors and pensioners tax offset (SAPTO) for that financial year. That 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:
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We have also provided additional search options to allow you to find payees who that have the ‘Seniors Seniors & Pensioners Tax Offset' setting option applied , via the Payroll > Payee > Search Payee > Payroll Details Tab, Tax Details section.
The ‘SAPTO’ filter is editable within the Tax Details section of Search Payee if Payee’s Tax Type criterion has been set to Any or PAYG. You can apply filters of:
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Any (default)
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Yes
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screen. When the option in the Tax Scale field is set to Tax Scale 2 or Tax Scale 5 or Tax Scale 6, an SAPTO search filter option is enabled as shown in the example below.
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Benefits
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 to be reported to the ATO via STP Phase 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 & Pensioners Tax Offset option is available and can be enabled in the PAYG Tax Details section of the Payroll > Payee > Payee Entry screen if the payee’s tax scale is set to Tax Scale 2, 5 or 6.
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