Company tax details apply to payees in Australia who are company contractors and have a tax type of Company. The tax details of such payees can be viewed and updated in the Payroll > Payee > Payee Maintenance > Payee Entry screen.
The company tax details must be recorded on the payee record before the payee can be assigned to a pay group and therefore before the payee can be paid.
Once defined, a payee's company tax details can be modified if necessary so long as the payee is not currently included in an open pay batch.
However, once the payee has been paid (included in a closed pay batch) their company tax details, with the exception of the company address details, are locked down for the corresponding payee details validity period and cannot be modified for that period. If you need to modify a payee's company tax details after the payee has been paid in one or more pay batches, you must create a new payee details validity period.
How to Record the Company Tax Details
To record a payee's company tax details, follow the procedure below.
How to Record the Company Tax Details | |
If you do not already have the relevant payee record open in the Payee Entry screen, search for and open the relevant payee record in edit mode. | |
2. | Navigate to the Payee Details > Company Tax Details section of the Payee Entry screen. |
3. | In the Company Name field, key in the name of the payee's company. |
4. | In the Business Name/Trading Name field, key in the registered trading name under which the payee's company operates. This may be the same as the company name |
5. | If the payee is registered to collect Goods and Services Tax, click GST Registered and key in the Australian Business Number of the payee's company in the ABN field. |
6. | If the payee has their own insurance policy, click Insurance. |
7. | If the payee is subject to a voluntary agreement to have tax withheld under the PAYG system, click Voluntary Agreement and key in the Commissioner's Instalment Rate or agreed withholding percentage in the CIR/Withholding % field. |
8. | Optionally, key in the address details of the payee's company in the Company Address field grouping. |
9. | At the top of the Payee Entry screen, click Save. The changes you have made are saved. |