Removal of Voluntary Agreement Options for Company Contractors (AU Only)

Description

Previously, it was possible to flag a company contractor payee (i.e. a payee with a tax type of Company) as being subject to a voluntary withholding agreement. Where that was the case, tax was withheld from the payee’s earnings when the payee was paid in a pay batch.

Because voluntary withholding agreements do not apply to company contractors, changes have been made to the Payroll > Payee > Payee Entry > Company Tax Details screen to remove the Voluntary Agreement field and the associated secondary CIR/Withholding % and CIR Applies fields, which are highlighted in Figure 1 below.

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Figure 1: Payee Entry > Company Tax Details > Voluntary Agreement fields.

Benefits

This enhancement prevents a voluntary withholding agreement from being applied to company contractors because voluntary withholding agreements can be entered into by individuals (sole traders) only and as such do not apply to company contractors.

Configuration

No configuration required.