Enhancement to SAPTO Status Validation (Payroll AU only)

Description

A validation has been added to prevent a Payee record from being saved if all the following conditions apply to the PAYG Tax Details for the payee:

• The Seniors & Pensioners Tax Offset field is ticked and the Status field has been set to Single

• The Medicare Levy Adjustment field is ticked and Dependents field has been set to 0.

An example of this is shown below.

Open

This validation has been added because where a payee is configured as described above, it indicates that the payee is subject to a Medicare Levy adjustment and a Seniors and Pensioners tax offset (SAPTO) but:

• they are claiming SAPTO based on being a single individual

• they are claiming Medicare Levy adjustment based on having a dependent spouse but no children.

This is an invalid combination of tax treatment options since an individual cannot be single and have a dependent spouse.

If this new validation prevents a Payee record from being saved, the following action can be taken:

• If the payee is genuinely eligible for a Medicare Levy adjustment, the option in the Status field for SAPTO must be updated to an option other than Single.

• If the payee does not have a dependent spouse or any dependent children, the Medicare Levy Adjustment option must be ticked off.

Benefits

This enhancement prevents incorrect tax treatment combinations being applied to a payee and therefore this prevents errors when reporting payees' earnings to the ATO via Single Touch Payroll reporting.

Configuration

No configuration required.