Pay Australia > Pay Process > EFT Pay - ABA Transaction Code now determined by Payee Tax Type (v12.15p2)

Description

Currently when generating the EFT Pay file, we hard-code the ABA Transaction Code field in each detail record in EFT files to a value of 53, which represents a payroll payment. Depending on the bank, this can result in the transaction being prefixed by text such as ‘Salary’ on the payee’s bank statement. This can cause some confusion or create a false impression that there is an employer/employee relationship between the pay company and the payee even if the payee is an independent contractor and therefore does not technically get paid a salary or wages.

In this release we have added some logic to the file generation process for EFT Pay to interrogate the Payee’s Tax Type and assign the ABA Transaction Code by Tax Type which will now be:

• 53 for PAYG

• 50 for Company

Benefit

This change will reduce the risk of Payees of Tax Type Company seeing confusing information against payment transactions in their bank statements.

Configuration

No additional configuration is required.