FastTrack360 Version 12 Online Help

Recording the Payee's TFN Declaration Information

Owned by Max Ciereszko
Last updated: 01 September 2023
3 min read

Where a payee has a tax type of PAYG the payee's Tax File Number (TFN) declaration must be recorded on their payee record before the payee record can be saved.

On commencing employment with a pay company a payee who will be subject to PAYG withholding must complete a TFN Declaration form. The information from the payee's TFN Declaration form should be used to record the payee's PAYG tax details so that the system can withhold the appropriate amount of tax from the payee's pay.

How to Record the Payee's TFN Declaration Information

To record the payee's TFN Declaration information, follow the procedure below.

How to Record the Payee's TFN Declaration Information

  1.  

On the Payee Entry screen, navigate to the Payee Details > PAYG Tax Details section.

2.

In the Tax Scale field, select the tax scale that applies to the payee based on the information they have provided on their TFN Declaration form.

For more information, see Explanation of Tax Scales.

3.

If the payee has provided their TFN, key in the number in the TFN Number field and skip directly to step 5.
Otherwise, skip this step and proceed to step 4.

4.

In the No TFN Reason field, select the reason why the payee has not provided a TFN. For example, if the payee has indicated on their TFN Declaration form that they have applied for a TFN, select TFN Application in Progress.

5.

If the payee has been granted an extension by the ATO that allows them more than 28 days to provide their TFN, tick the Exempt From No TFN 28 Day Rule field.
Otherwise skip this step.

If the Exempt From No TFN 28 Day Rule field is not ticked and the TFN Application in Progress option has been selected in the No TFN Reason field, the following occurs automatically if a TFN is not provided and keyed in the TFN Number field within 28 days of the payee's employment start date:

  • the No TFN Provided (28 day rule applied) field becomes ticked to indicate the payee has failed to provide a TFN within 28 days of commencing employment

  • the tax scale is set to 4a (if the payee is an Australian resident) or 4b (if the payee is a non-resident)

  • the No TFN Reason field is automatically set to Declined TFN Number Declaration

  • tax is withheld from the payee's pay at the highest rate from that point onwards until the payee's tax scale is changed manually and a TFN is keyed in the TFN Number field.

6.

In the Tax Status field, select the applicable option depending on whether the payee has indicated that they are an Australian resident for tax purposes, a foreign resident for tax purposes or a working holiday maker on their TFN declaration.

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.

If you select Working Holiday Maker you will also need to select an option in the Passport Country field and there may be other actions you need to take depending on your status as an employer of working holiday makers. For more information, see Employing Working Holiday Makers.

7.

If the payee has indicated that they have a Higher Education Loan Program (HELP), VET Student Loan (VSL), Financial Supplement (FS), Student Start-up Loan (SSL) or Trade Support Loan (TSL) debt, click STSL (exc. SFSS).

8.

Unless you selected the TFN Application in Progress option at step 3 or the payee has decline to provide a signed TFN declaration, tick the TFN Declaration Signed field and select the date on which the payee signed their TFN Declaration form in the TFN Declaration Signed Date field.

 

 

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