Higher Education Contribution Scheme (HECS)

Individuals with a HECS debt may be required to have additional tax instalment deductions taken from their pay to cover the debt. Use a HECS tax scale for an employee that has provided you with an TFN Declaration, and:

$image\bullet.gif$ Has answered Yes to the HECS;

$image\bullet.gif$ Hasn't crossed box A;

$image\bullet.gif$ Has weekly earnings exceeding the minimum threshold; and

$image\bullet.gif$ Hasn't claimed a HECS exemption a Medicare Levy Variation Declaration.

Applying a HECS tax scale

1 From the Lists menu, choose Employees.

2 Click to select the employee and then click Employee>Edit. The Edit Employee window is displayed.

3 Click the Taxation tab.

4 Select þ HECS Employee and then select the employee’s normal tax scale. Elite Payroll will apply the HECS tax tables and deduct the required HECS repayments.

5 Click OK.