Employee Tax Configuration - Australia

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The SGC Min/Max check field checks for the Minimum/Maximum SGC thresholds which is used in the automatic reconciliation of SGC amounts. These amounts are stored on Module Control. As part of the Create Payments process, Greentree checks these values, and amends the pay if needed. A warning displays when any pay is amended this way once the payments are created.

Tax File Number

Enter the employee's tax file number (TFN).

When entering tax file numbers for employees, ensure the numbers are entered as a string with no separating characters such as spaces, dashes, slashes and the like. You can enter these numbers if the employee meets the criteria:

• 000000000 - No TFN quoted by the payee, the payee chooses not to quote a TFN, or fails to provide one within 28 days.
• 111111111 - A TFN is applied for, the employee commenced work in mid- to late June, and payment summaries needed to be issued.
• 333333333 - The employee is under 18 and earns $350 a week or less, $700 a fortnight or less, $1517 a month or less.
• 444444444 - The employee is a pensioner.
• 987654321 - The TFN quoted has alpha characters.

This field is mandatory when:

• You select the option Include in the next submission to the ATO on this form.
• The company reports payroll using Single Touch Payroll.

Payroll Tax Trans Type

This field defines the rate of payroll tax that is applicable for this employee. Enter or select the payroll tax transaction type to use with the employee.

SGC Min/Max Check

Enter an SGC (Superannuation Guarantee Charge) Employer Cost Transaction Type for this employee. This field checks for the Minimum/Maximum SGC thresholds which is used in the automatic reconciliation of SGC amounts.

SGC Custom Threshold

Select a SGC Custom Threshold from the dropdown list box. The default is No custom threshold, which if selected uses the SGC Threshold Standard ATO requirement) as specified under HR System > Module Control > Payroll > Super > SGC Thresholds. If a Custom SGC Threshold is selected, Greentree uses the custom SGC Thresholds specified in System > Payroll > SGC Custom Threshold Maintenance.

Normal Gross Earnings

You can set this option to Module Control Default, or select to either of:

• Average for year - Defaults the Normal Gross Earnings from the average of all paid pays for the last financial year for the employee.
• Last Pay - Defaults the Normal Gross Earnings from the last non future dated paid pay for the employee.

Foreign Employment Type

Select the income type for the foreign employment payment summary.

Payment Summary

Select the payment summary form to print at the end of the financial year for this employee. The default is Individual Non Business.

If you select Voluntary Agreement (indicating that the employee is a contractor or freelancer) from the Payment Summary dropdown list, the options in the Onboarding section become read only.

Income Type

Select one of these:

• S - Salary or wages.
• H - Working holiday maker.

Payment Summary is Amended

Select this option if the details that make up the payment summary have been amended and a new Payment Summary Annual Return file must be submitted to the ATO.

Allow TFN disclosure

Select this option if the employee has authorised you to disclose their Tax File Number to third parties such as Superannuation Authorities. The TFN will be printed on the Authority remittance report and is included in the export.

Onboarding

Enter details from a new employee's Tax File Number (TFN) declaration form when the TFN's are being electronically submitted to the ATO.

Notes:

• You only need to enter these details when onboarding a new employee.
• If you select Voluntary Agreement (indicating that the employee is a contractor or freelancer) from the Payment Summary dropdown list, the options in the Onboarding section become read only.

Previous Name

Enter the employee's previous name (if there is one) from their TFN declaration.

Employment Basis

Select one of these options from the dropdown list:

• Full Time
• Part Time
• Casual
• Labour Hire
• Pension/Annuity

Payee Tax Status

Select one of these options from the dropdown list:

• Australian resident
• Foreign resident
• Working holiday maker

Do they want to claim the tax-free threshold?

Select this option if the employee is claiming the amount of income they earn each year which isn't taxed.

Do they have a Higher Education Loan Program (HELP), Student Start-up Loan (SSL), or Trade Support Load (TSL) debt?

Select this option if the employee has an Accumulated HELP, SSL, or TSL debt. Income Contingent loans are included in the Accumulated HELP debt.

Do they have a Financial Supplement (SFSS) debt?

Select this option if the employee has an Accumulated Financial Supplement debt.

Do they want to claim or vary their tax offset by reducing the amount withheld from payments made to you?

Select this option if the employee is claiming an amount that will reduce the tax they pay on their annual income.

Estimate total tax offset amount

If you selected the previous option, enter the amount by which the employee can reduce the tax they must pay.

Do they want to claim or vary the seniors or pensioners tax offset entitlement by reducing the amount withheld from payments made to you?

Select this option if the employee is a senior or is receiving a pension and is claiming an amount that will reduce the tax they pay on their income.

Do not select this option if the employee's income is from more than one source.

Payee Signed Declaration

Enter the date that the payee signed the declaration.

Include in next submission to the ATO

Select this option to include the employee's information in the next TFN declaration file you send to the ATO.

• Working Holiday Maker
• HR Module Control
• Super (Australia Only)
• Create TFN Declaration

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