Contractor Voluntary Withholding Agreement Rate (AU Only)

Description

A new field labelled CIR Applies has been added to the Company Tax Details section of the Payroll > Payee > Payee Entry screen to identify company contractors (payees with a tax type of Company) who are subject to voluntary tax withholding at a Commissioner's Installment Rate (CIR).

A company contractor is deemed to be subject to CIR if they have an agreement to have tax withheld from their earnings and their withholding rate is anything other than the standard voluntary withholding agreement rate of 20%.

The new CIR Applies field is highlighted in the example below.

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Benefits

Under Single Touch Payroll (STP) Phase 2 it is mandatory to report if a payee has a voluntary withholding agreement that is at the standard rate of 20% or at a CIR rate. Therefore, this enhancement allows you to configure Payee records accordingly in preparation for STP Phase 2 reporting.

Configuration

On upgrade, the CIR Applies field will be ticked automatically for all company contractors who have a voluntary withholding agreement and have a withholding rate that is anything other than 20%. Therefore, it should not be necessary to update existing Payee records to cater for this.

However, when creating new Payee record or editing existing Payee records after upgrading, the CIR Applies field must be ticked manually if applicable to a company contractor.