Enforcement of Valid Tax Treatment Combinations (Payroll AU only)

Description

The following fields, which are available on the Payroll Australia > Payee > Payee Entry > PAYG Tax Details screen, can no longer be selected when a new payee is created or when a new validity period is added to an existing payee record depending on the tax scale and tax status that applies to the payee:

• Medicare Levy Adjustment - this field cannot be selected if any of the following applies:

  • the payee’s tax status is Working Holiday Maker or Foreign Resident

  • the payee’s tax scale is anything other than Tax Scale 2 or Tax Scale 6

• Tax Offset Claimed - this field cannot be selected if any of the following applies:

  • the payee’s tax status is Working Holiday Maker or Foreign Resident

  • the payee’s tax scale is anything other than Tax Scale 2, Tax Scale 6 or Tax Scale 6

• STSL (exc. SFSS) - this field cannot be selected if any of the following applies:

  • the payee’s tax status is Working Holiday Maker

  • the payee’s tax scale is anything other than Tax Scale 4a, Tax Scale 4b or Variation (where the variation type is Downward).

The abovementioned fields are highlighted in the example below.

Open

Benefits

This enhancement helps to ensure that only valid tax treatment combinations can be applied to payees so that tax is applied correctly based on a payee’s tax scale and tax status and that a valid tax treatment code can be reported to the ATO via Single Touch Payroll reporting.

For example, a payee who has not supplied a Tax File Number cannot claim a tax offset and hence, where the tax scale is Tax Scale 4a - TFN Not Provided - Resident or Tax Scale 4b - TFN Not Provided - Foreign Resident

Configuration

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