Calculate the rebate amount the employee will receive each pay period.Enter the employee's Taxation details. These details must be set up before a pay run is commenced. If you change these details after a pay run, the previous pays won't be affected.
1 Tax File Number – Enter the employee's Tax File Number without spaces or dashes. For example, enter 123456789, not 123-456-789.
If the employee does not have a TFN, make sure you select the Tax File Number Not Provided tax scale. If an employee does not provide a Tax File Number (TFN), you must deduct tax at the top marginal rate plus the Medicare levy, unless the employee is exempted from providing a TFN.
ABN number – Enter an ABN (Australian Business Number) number for contractors. You must withhold PAYG at the top marginal rate plus the Medicare levy from payments made to a contractor that does not supply you with a valid ABN.
Use Contractor status when a worker enters into a Voluntary Agreement to have their payments fall under the new PAYG system of tax withholding.
2 Exclude Pays From Payroll Tax – select ž to exclude wages from payroll tax. If the employee is an apprentice, their wages may need to be excluded from your state's payroll tax.
3 Exclude From Payment Summary – Select ž if you don't need to prepare a Payment Summary for this employee.
4 Extra Tax / Rebate – If the employee wants to pay additional tax, enter it as a positive number. If the employee receives a rebate, such as a zone rebate or family allowance you will need to:
Calculate the rebate amount the employee will receive each pay period.
Enter the rebate as a negative figure in Extra Tax Contribution or Rebate (-ve).
5 CDEP Funding – Wages paid with funds from Community Development Employment Projects (CDEP) must be tracked and recorded on a separate line on the employee Payment Summary. When this option is ž selected, a CDEP pay rate will appear in the Employee Record – Pay Rates tab.
6 HECS Debt – Individuals with a HECS debt may be required to have additional tax instalment deductions taken from their pay to cover their debt. See Higher Education Contribution Scheme (HECS) for the conditions under which you must withhold HECS payments.
If you must withhold HECS payments, select ž HECS debt to apply HECS calculations to the employee’s tax scale. Elite Payroll will apply the HECS tax tables and deduct the required HECS repayments.
SFSS Repayment – Students may obtain additional loans to cover educational expenses. These additional cost are called Financial Supplement debts and are separate from HECS debts. If you must withhold SFSS Repayments, select ž SFSS Repayment.
7 Labour Hire – Select this option if you are in the business of contracting workers out to other organisations. If you select this option, the contractor’s earnings will be reported on a Payment Summary – Labour Hire and Specified Payments.
If this option isn't selected for a contractor, the contractor’s earnings will be reported on a Payment Summary – Voluntary Agreement. Voluntary agreements enable businesses to withhold amounts from payments they make to workers (such as contractors) to help the workers pay their income tax.
8 Extra Tax Contribution or Rebate (-ve) – If the employee needs to or wants to pay extra tax to the ATO, enter it as a positive figure. Enter a rebate as a negative figure.
9 Tax Scale – Select the tax scale the employee is to be taxed under. This tax scale will vary depending their TFN Declaration. If you need to enter a custom tax scale, add it later. Custom tax scales can be used for sub-contractors or employees who have received a special scale from the ATO.
10 WorkCover – If you are in South Australia or Queensland, select the WorkCover rate the employee is under. This will enable Elite Payroll to calculate the amount of WorkCover to pay. If this is set incorrectly the WorkCover Report will calculate the wrong amounts. You can add additional WorkCover rates through the WorkCover List.