Description
To support the ATO requirement to report tax treatment for PAYG Payees who are subject to Seniors/Pensioners Tax Offset (SAPTO), new settings have been created in the Pay Module Payee record. These will apply where the payee is:
66 years or older at the end of a financial year
eligible for a seniors and pensioners tax offset (SAPTO) for that financial year.
The offset that applies depends on the payee’s status which can be one of the following:
single
part of a couple
part of an illness separated couple.
The new fields include:
Field | Description | Details |
Seniors & Pensioners Tax Offset | If ticked, indicates that the payee is subject to SAPTO. This setting is used to report the relevant tax treatment code in the STP report. | Must only be available if Tax Scale is set to one of the following:
This setting does not affect the tax calculation process, so it is editable even if the corresponding payee validity period has been used in a pay batch. |
Status | Indicates the payee’s marital status. This setting is used to report the relevant tax treatment code in the STP report. |
|
In the example Payee record below the ‘Seniors & Pensioners Tax Offset’ setting has been ticked and the Status has been defined as Couple.
Please be aware that the new fields added to the Payee PAYG Tax Details section are for STP reporting purposes only. The application of the relevant tax offset needs to be calculated manually and then applied via a manual tax adjustment in a pay batch.
We have also provided additional search options to allow you to find Payees that have the ‘Seniors & Pensioners Tax Offset' setting applied, via the Search Payee > Payroll Details Tab, Tax Details section.
The ‘SAPTO’ filter is editable within the Tax Details section of Search Payee if Payee’s Tax Type criterion has been set to Any or PAYG. You can apply filters of:
Any (default)
Yes
No
Benefits
This enhancement adds the ability to identify payees who are eligible for the Seniors & Pensioners Tax Offset so that the relevant tax treatment can be reported to the ATO via STP reporting if a payee’s tax withholding is being adjusted to apply the offset.
Configuration
On upgrade to V12.17 the ‘Seniors & Pensioners Tax Offset' setting is available in Payee Record for PAYG Payees, in the PAYG Tax No section. By default, this item is not ticked and these settings can be updated at any time in the existing payee. Where ticked the Status value must be applied to one of the following options:
Single
Couple
Illness Separated Couple
The SAPTO values can be edited even where the Payee’s corresponding validity period has been included in a pay batch.
Where set this information will be included in the STP information reported to the ATO for reporting purposes.