Working with the Payee Entry Screen (Payroll AU)

Pay Group

Defines the pay group to which the payee belongs. Pay groups group together payees whose pay is to be processed together in the same pay batch.

It is mandatory to assign a payee to a pay group before the payee can be paid in a pay batch.

This field is locked down and cannot be edited while the payee is being processed in a pay batch and remains locked down after the payee has been processed in a closed pay batch. To assign the payee to a different pay group once the payee has been processed in a closed pay batch you must create a new payee details validity period.

For more information, see also Important Information About Switching Pay Groups.

Payment Method

Defines the method by which the payee is paid (EFT, cash or cheque). This defaults to EFT and where the EFT payment method is to apply, it is mandatory to define a set of bank account details against the payee record before you can save the payee record.

Employment Type

Defines the employment type that applies to the payee. An employment type groups payees who are subject to the same or similar employment conditions and determines, for example, the types of leave the payee is eligible to take.

This field defaults to the default employment type for the pay company by which the payee is employed, if a default employment type has been defined for that pay company, but can be changed if required.

It is mandatory to select an employment type before the payee record can be saved.

This field is locked down and cannot be edited while the payee is being processed in a pay batch and remains locked down after the payee has been processed in a closed pay batch. To change the payee’s employment type once the payee has been processed in a closed pay batch you must create a new payee details validity period.

Pay Frequency

Displays the frequency with which the payee is paid (for example: weekly, fortnightly, monthly). The pay frequency is dependent upon the pay group to which the payee is assigned and therefore this field displays the relevant frequency based on the option selected in the Pay Group field.

Payee Rate

Defines the pay rate that will be used to determine the rate at which the payee will be paid when taking paid leave while not placed in a job order.

This field is optional and applies only if the payee is eligible to take paid leave while not placed in a job.

This field is locked down and cannot be edited while the payee is being processed in a pay batch and remains locked down after the payee has been processed in a closed pay batch. To change the payee’s rate of pay once the payee has been processed in a closed pay batch you must create a new payee details validity period.

Payee Rate Type

Defines whether the payee’s default rate of pay, as specified in the Payee Rate field, is defined on a per hour or per day basis.

This field is available only if a pay rate is defined on the Payee Rate field, in which case it is mandatory to select an option in this field.

This field is locked down and cannot be edited while the payee is being processed in a pay batch and remains locked down after the payee has been processed in a closed pay batch. To change the payee’s rate type once the payee has been processed in a closed pay batch you must create a new payee details validity period.

Enquiry Office

Defines the agency office to which the payee directs any enquires regarding their pay.

A payslip format can be configured to print the enquiry office details instead of, or in addition to, the pay company details. If the payslip format is configured to print the enquiry office details the system refers to this field to determine which agency office the details are taken from.

Review Date

Defines the date on which the payee’s employment details or conditions are due to be reviewed. This field is optional and does not affect how or when the payee is paid.

Payslip Delivery Method

Defines the means by which the payee prefers to receive their payslips. This can be one of the following:

Portal Only

Indicates that the payee will access their payslips via the Candidate Portal only and their payslips will not be emailed or printed and physically delivered to the payee.

Note that a payee’s payslips are always accessible via the Candidate Portal regardless of the payee’s preferred method of delivery.

Print

Indicates the payee’s payslips will be printed and physically distributed to the payee.

Email

Indicates the payee’s payslips will be emailed to the payee.

The option in this field defaults to the delivery method that has been configured as the default for the pay company by which the payee is employed but can be changed as required.

Payslip Format Group

Defines the pay document format group that defines the document format that is used to generate the payee's payslip and any supplementary documents that are to be issued along with the payee's payslip.

The option in this field defaults to the document format group that is defined as the default for the payee's pay company or the payee's employment type, as defined in the pay company default settings. However, a different document format group can be selected if necessary.

Source

Displays the source of the payslip format that is selected in the Payslip Format field. This can be one of the following:

Pay Company

Indicates that the payslip format that applies to the payee is the default format for the payee’s pay company.

Employment Type

Indicates that the payslip format that applies to the payee is the default format for the payee’s employment type.

Payee

Indicates that the payslip format that applies to the payee is not the default format for the payee’s pay company or employment type.

Payment Summary Delivery Method

Defines the means by which the payee prefers to receive their payment summaries. This can be one of the following:

Portal Only

Indicates that the payee will access their payment summaries via the Candidate Portal only and their payment summaries will not be emailed or printed and physically delivered to the payee.

Note that a payee’s payment summaries are always accessible via the Candidate Portal regardless of the payee’s preferred method of delivery.

Print

Indicates the payee’s payment summaries will be printed and physically distributed to the payee.

Email

Indicates the payee’s payment summaries will be emailed to the payee.

The option in this field defaults to the delivery method that has been configured as the default for the pay company by which the payee is employed but can be changed as required.

Payslip Message

Defines a textual message that is to appear on the payee’s payslips. This field is optional.

Proforma Remittance

If ticked, indicates that the payee is to be issued an interim pay advice document, prior to being paid, whenever any of their timesheets are interpreted and are released for processing in a pay batch. For more information, see Supplying Proforma Remittance Advice.

If this field is ticked, make sure that the document format group that is selected in the Payslip Format Group field includes a format for proforma remittance documents. For more information, see Document Format Groups.

(Proforma Remittance) Delivery Method

Identifies how proforma remittance documents are to be delivered to the payee.

This field is only available if the Proforma Remittance field is ticked, in which case it is mandatory to select one of the following options in this field:

Email - proforma remittance advice will be automatically emailed to the payee and will also be available for download via the payslip list in the Candidate Portal

Portal Only - proforma remittance will be available to download via the payslip list in the Candidate Portal but will not be emailed automatically to the payee.

(Proforma Remittance) Email Template

Identifies the email template that is to be used to deliver proforma remittance documents to the payee via email.

This field is only available if the (Proforma Remittance) Delivery Method field is set to Email, in which case it is mandatory to select an option in this field.

Note that the templates listed in this field are configured under Pay/Bill Email Template Maintenance.

(Proforma Remittance) Starting Proforma Remittance ID

Identifies the starting value for proforma remittance IDs that are to be printed on the payee’s proforma remittance documents.

For example, keying a value of 0001 in this field means that the first proforma remittance document that is generated will have an ID of 0001, the second document will have an ID of 0002 and so on.

The ID can be used to uniquely identify a specific proforma remittance document when there is a payment enquiry and can be used to cross reference with the corresponding payslip, once the payee is paid.

This field is only available if the Proforma Remittance field is ticked, in which case it is mandatory to key a numeric value in this field.

If a value has already been keyed in this field and one or more proforma remittance documents have already been generated, the value can be changed so long as it is a number greater than the value displayed in the Last ID field (for more information, see below).

(Proforma Remittance) Next ID

Displays the proforma ID that will be printed on the next proforma remittance document that will be generated for this payee.

This field is display-only and is blank until at least one proforma remittance document has been generated for this payee.

Note that the next available ID will be one number greater than the value displayed in the Last ID field (for more information, see below) unless the starting ID is updated after proforma remittance documents have already been generated for this payee, in which case there could be a gap between the last ID that has been generated and the next ID that will be generated.

(Proforma Remittance) Last ID

Displays the proforma ID that was printed on the last proforma remittance document that was generated for this payee.

This field is display-only and is blank until at least one proforma remittance document has been generated for this payee.

Tax Scale

Defines the tax scale that determines the amount of tax that is withheld from the payee’s pay. It is mandatory to select a tax scale before the payee can be assigned to a pay company and therefore before the payee can be paid in a pay batch.

Seasonal Worker Programme

If ticked, indicates that the payee is a foreign resident who is working in Australia under the seasonal worker programme (SWP).

This field is only available if the Variation - Approved Withholding Variation option is selected in the Tax Scale field.

Payees working under SWP are either subject to a flat rate of tax, in which case the applicable tax rate must be keyed in the Withholding Variation % field, or can be exempt from tax, in which case the Exempt From Withholding field must be ticked (for more information, see below).

Exempt From Withholding

If ticked, indicates that the payee is working under the seasonal worker programme and is exempt from tax being withheld from their earnings and therefore:

- no tax will be calculated and withheld from the payee’s earnings when the payee is included in a pay batch

- the payee will not be reported in Single Touch Payroll reports.

This field is only available if the Seasonal Worker Programme field is ticked.

Horticulturalists/Shearers Tax

If ticked, indicates that the payee is subject to a special, flat rate of tax because they are work assignments of no longer than 6 months for the same host employer in the horticultural and shearing industries.

This field is only available if all the following conditions apply:

- the Variation - Approved Withholding Variation option is selected in the Tax Scale field

- the Australian Resident or Foreign Resident option is selected in the Tax Status field (for more information, see below)

- a tax file number has been keyed in the TFN Number field or the TFN Application in Process option has been selected in the No TFN Reason field (for more information, see below).

Withholding Variation %

Defines the tax rate that applies to the payee if the payee is:

- subject to a withholding variation that increases or decreases the amount of tax to be withheld form their earnings

- working under the seasonal worker programme.

This field is only enabled if the Variation - Approved Withholding Variation option is selected in the Tax Scale field and is mandatory unless the Exempt From Withholding field is ticked.

Variation Type

If the payee is subject to a withholding variation, this field identifies whether the variation increases (upwards variation) or decreases (downwards) the amount of tax that is withheld from their earnings.

If the payee is subject to a downward variation, this field populates a specific tax treatment code in Single Touch Payroll reports that allows the ATO to identify why the payee’s tax withholding is less than otherwise expected.

This is field is only available and is mandatory if the Variation - Approved Withholding Variation option is selected in the Tax Scale field and the Seasonal Worker Programme or Horticulturalists/Shearers Tax fields are not ticked.

Medicare Levy Adjustment

If ticked, indicates the payee is a low-income earner with dependents and is eligible for a Medicare levy adjustment. This is also known as a Medicare levy reduction.

This field can be ticked to record the fact that a payee is eligible for a Medicare Levy adjustment. However, the system will not calculate and apply the adjustment automatically; the adjustment amount must be calculated manually, factoring in the number of dependents (see below), and must be applied manually at the Tax stage of a pay batch to reduce the payee's tax withholding accordingly.

Dependents

Defines the number of the payee’s dependents based on which the payee is claiming a Medicare levy adjustment.

This field is available only if the Medicare Levy Adjustment field is ticked, in which case it is mandatory to specify the number of dependents.

Medicare Levy Surcharge

If ticked, indicates that the payee has provided a Medicare levy declaration form (NAT 0929) to request that an additional amount of tax be withheld from their earnings to cover their Medicare levy surcharge (MLS) liability.

If ticked, the tax treatment code that is reported to the ATO in Single Touch Reporting will indicate that an MLS is being applied to the payee's PAYG withholding. However, FastTrack360 does not apply the additional withholding automatically and a manual tax adjustment is required to factor in the surcharge each time tax is withheld in a pay batch. If a payee does require additional withholding to contribute towards the MLS, a deduction type of Extra Tax can be added to the Payee record to deduct the additional percentage (see Surcharge Tier below) from each pay.

For an MLS to be applicable the payee must be an Australian resident for tax purposes, must provide tax file number and cannot be subject to a Medicare levy reduction or any tax offsets. Therefore, this field is only available when the following conditions apply:

- the Tax Scale 1 or Tax Scale 2 options are selected in the Tax Scale field

- the Medicare Levy Adjustment and Tax Offset Claimed fields are not ticked.

Surcharge Tier

Identifies the Medicare levy surcharge (MLS) tier that applies to the payee, whereby the selected tier determines the rate at which the surcharge applies as follows:

- Tier 1 - 1%

- Tier 2 - 1.25%

- Tier 3 - 1.5%

This field is available only if the Medicare Levy Surcharge field is ticked, in which case it is mandatory to select an option in this field.

FastTrack360 does not withhold the additional tax automatically and a manual tax adjustment is required to factor in the surcharge each time tax is withheld in a pay batch. This field only identifies the relevant surcharge tier/percentage for information purposes and so that the relevant tax treatment code can be reported to the ATO via Single Touch Payroll if the payee’s tax is adjusted manually to factor in the MLS.

Tax Offset Claimed

If ticked, indicates that the payee is claiming a low-income tax offset. Tick this field if the payee has submitted a Withholding Declaration form (NAT 3093) form and has answered YES to question 7 on the form.

Offset Amount

The estimated total low-income tax offset amount that the payee is claiming. This field is only available if the Tax Offset Claimed field is ticked, in which case the total tax offset amount that the payee has specified under question 7 of the Withholding Declaration form (NAT 3093) form must be keyed into this field.

Click here for more information about how low-income tax offsets are applied in FastTrack360.

Seniors & Pensioners Tax Offset

If ticked, indicates that the payee is subject to a seniors and pensioners tax offset (SAPTO).

If ticked, the tax treatment code that is reported to the ATO in Single Touch Reporting will indicate that SAPTO is being applied to the payee's PAYG withholding. However, FastTrack360 does not apply the relevant tax offset automatically and a manual tax adjustment is required to factor in the offset each time tax is withheld in a pay batch. Therefore, this option must only be ticked if manual tax adjustments will be applied to the payee’s tax to factor for the offset.

For SAPTO to be applicable the payee must be at least 66 years old at the end of the financial year in which they are claiming the offset. The payee must also be an Australian resident for tax purposes, must provide a tax file number and must be claiming the tax-free threshold. Therefore, this field is only available if tax scales 2, 5 or 6 are selected in the Tax Scale field.

Status

Identifies the payee’s seniors and pensioners tax offset (SAPTO) status, which defines the extent of the tax offset that the payee can claim and can be one of the following:

- Single

- Couple

- Illness Separated Couple.

This field is available only if the Seniors & Pensioners Tax Offset field is ticked, in which case it is mandatory to select an option in this field.

The option selected in this field affects the tax treatment code that is reported to the ATO in Single Touch Reporting and records the applicable SAPTO status so that the relevant tax offset can be applied manually to the payee’s tax withholding. FastTrack360 does not automatically offset tax based on the option that is selected in this field. A manual tax adjustment is required to factor in the offset each time tax is withheld in a pay batch.

Exempt From No TFN 28 Day Rule

If ticked, indicates that the Australian Taxation Office (ATO) have given the payee an exemption from providing their tax file number (TFN) within 28 days of commencing employment. The system will not automatically tax the payee at the highest rate if a TFN is not provided within 28 days of commencing employment.

If un-ticked, the system will automatically change the payee's tax scale to 4a (for Australian residents) or 4b (for non-residents) if a TFN is not provided within 28 days of the payee's employment start date. That means the system will begin to tax the payee at the highest tax rate after 28 days have elapsed since commencing employment, as required by the ATO, and will continue to do so until the payee provides a TFN or a TFN exemption.

No TFN Provided (28 day rule applied)

If ticked, indicates that the payee failed to provide a tax file number (TFN) or a TFN exemption within 28 days of commencing employment. In such circumstances, the system automatically changes the payee's tax scale to 4a (for Australian residents) or 4b (for non-residents), resulting in the payee being taxed at the highest rate according to the requirements of the Australian Taxation Office (ATO).

This field is automatically set by the system if the abovementioned conditions apply and remains ticked until the payee's tax scale is changed manually and a TFN is keyed in the TFN Number field.

TFN Number

Defines the payee’s tax file number (TFN) that uniquely identifies the payee to the Australian Taxation Office (ATO). This field is mandatory unless an option is selected in the No TFN Reason field.

No TFN Reason

Defines the reason why the payee has not provided a TFN.

This field is available only if a TFN has not been keyed in the TFN Number field, in which case it is mandatory to select the relevant option from this field.

The options available in this field are:

- TFN Application In Process - select this option if the payee’s TFN Declaration states that the payee has applied to obtain a TFN. Note that if this option is selected but no TFN number is keyed in the TFN number field after 28 days of the employment start date, the system will automatically change this option to the Declined TFN Number Declaration (for more information, see below) unless the Exempt From No TFN 28 Day Rule field has been ticked.

- Exempt - Under 18 - Low Income - select this option if the payee is exempt from providing a TFN because they are under 18 and their earnings are insufficient to have tax withheld.

- Exempt - Receive Pension/Benefit or Allowance - select this option if the payee is exempt from providing a TFN because the payee is receiving a social security or service pension or benefit (other than Newstart, sickness allowance, special benefits or partner allowance).

- Declined TFN Number Declaration - select this option if the payee has declined to provide a TFN within 28 days of commencing employment. If this option is selected the payee will be taxed at the highest rate that applies to their tax residency status.

Basis of Payment

Defines the basis under which the payee is employed. This field is mandatory and defaults to L-Labour hire but can be changed to the relevant option based on the basis of payment as indicated on the payee’s TFN Declaration form.

This field is locked down and cannot be edited while the payee is being processed in a pay batch and remains locked down after the payee has been processed in a closed pay batch. To change the payee’s basis of payment once the payee has been processed in a closed pay batch you must create a new payee details validity period.

Tax Status

Defines if the payee is an Australian resident, foreign resident or working holiday maker for tax purposes.

The options that are available in this field depend on the tax scale that is selected. For example, if you have selected Tax Scale 1, 2, 4a, 5 or 6, the only option that is available in the Tax Status field is Australian Resident because those tax scales apply to Australian residents only.

STSL 

Indicates that a payee has a study and training support loan (STSL) debt such as a Higher Education Loan Program (HELP), VET Student Loan (VSL), Financial Supplement (FS), Student Start-up Loan (SSL) or Trade Support Loan (TSL) debt. This field is locked down and cannot be edited while the payee is being processed in a pay batch and remains locked down after the payee has been processed in a closed pay batch. To change the payee’s STSL status once the payee has been processed in a closed pay batch you must create a new payee details validity period.

TFN Declaration Signed

If selected, indicates that the payee has signed off on their TFN declaration.

This field is locked down and cannot be edited while the payee is being processed in a pay batch.

TFN Declaration Signed Date

Defines the date on which the payee signed off on their TFN declaration.

This field is locked down and cannot be edited while the payee is being processed in a pay batch.

TFN Reported Date

Displays the date on which the payee’s TFN declaration information was reported. The date in this field is set automatically when the payee is included on a TFN Declaration report.

Note that the date displayed in this field indicates that the payee’s TFN declaration details have been included on an electronic TFN Declaration report but not necessarily the date the report was submitted to the ATO.

Company Name

Defines the company name under which the payee is employed. This field is mandatory when assigning the payee to a pay group and therefore the payee cannot be paid in a pay batch until this field is filled in.

This field is locked down and cannot be edited while the payee is being processed in a pay batch and remains locked down after the payee has been processed in a closed pay batch. To change the company name once the payee has been processed in a closed pay batch you must create a new payee details validity period.

Business Name/Trading Name

Defines the registered trading name of the company under which the payee is employed. This field is mandatory when assigning the payee to a pay group and therefore the payee cannot be paid in a pay batch until this field is filled in.

This field is locked down and cannot be edited while the payee is being processed in a pay batch and remains locked down after the payee has been processed in a closed pay batch. To change the trading name of the payee’s company once the payee has been processed in a closed pay batch you must create a new payee details validity period.

GST Registered

If selected, indicates the payee’s company is registered to collect GST and therefore GST will be calculated for the payee at the GST stage of the pay batch process.

This field is locked down and cannot be edited while the payee is being processed in a pay batch and remains locked down after the payee has been processed in a closed pay batch. To change the GST registered status once the payee has been processed in a closed pay batch you must create a new payee details validity period.

ABN

Defines the Australian Business Number that uniquely identifies the payee’s company.

This field is available only when the GST Registered option is ticked, in which case it is mandatory to specify the ABN.

This field is locked down and cannot be edited while the payee is being processed in a pay batch and remains locked down after the payee has been processed in a closed pay batch. To change the ABN once the payee has been processed in a closed pay batch you must create a new payee details validity period.

Insurance

If selected, indicates that the payee is covered by their own insurance policy.

This field is locked down and cannot be edited while the payee is being processed in a pay batch and remains locked down after the payee has been processed in a closed pay batch. To change the insurance status once the payee has been processed in a closed pay batch you must create a new payee details validity period.

Policy Expiry Date

Defines the date on which the payee’s insurance policy expires and acts a prompt to obtain updated insurance policy documents from the payee.

This field is available only if the Insurance option is ticked, in which case it is mandatory to specify a policy expiry date.

Voluntary Agreement

If selected, indicates the payee is subject to a voluntary agreement to have tax withheld from their pay by their pay company.

This field is locked down and cannot be edited while the payee is being processed in a pay batch and remains locked down after the payee has been processed in a closed pay batch. To change the voluntary agreement status once the payee has been processed in a closed pay batch you must create a new payee details validity period.

CIR Applies

If selected, indicates that the payee is subject to a voluntary agreement to have tax withheld and the rate of withholding is a Commissioner’s Instalment Rate rather than the standard 20% voluntary withholding rate.

Ticking this option allows the relevant tax treatment code to be reported in Single Touch Payroll reporting to indicate to the ATO why the payee is having tax withheld at a rate other than the standard 20% voluntary rate.

This field is available only if the Voluntary Agreement field is ticked.

CIR/Withholding %

Defines the commissioner’s installment rate or withholding percentage that determines the percentage of the payee’s gross pay that is withheld as tax under the applicable voluntary withholding agreement.

This field is available only if the Voluntary Agreement option is ticked, in which case it mandatory to specify the withholding percentage in this field.

This field is locked down and cannot be edited while the payee is being processed in a pay batch and remains locked down after the payee has been processed in a closed pay batch. To change the withholding percentage once the payee has been processed in a closed pay batch you must create a new payee details validity period.

Contractor Payment Terms

If an option is selected in this field, payment of the payee’s timesheets are deferred until the payment terms due date, as defined by the payment terms option that is selected in this field, has been reached.

For more information, see Paying Company Contractors According to Payment Terms.

Address Line 1

Defines the first line of the company’s registered street address.

Address Line 2

Defines the second line of the company’s registered street address.

Suburb

Defines the suburb in which the company’s registered address is located.

State

Defines the state in which the company’s registered address is located.

Postcode

Defines the postcode in which the company’s registered address is located.

Country

Defines the country in which the company’s registered address is located.