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Purpose

The purpose of this quick reference guide is to step through the process of creating an AU PAYG Payee Withholding. The intended audience for this document is system administrators / standard users.

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Steps

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Create a new AU PAYG Payee Withholding record

The AU PAYG Payee Withholding record holds the General Information, TFN, and Tax Offset Details for a Payee. Create an AU PAYG Payee Withholding by following the below steps:
  1. Navigate to the Payee record.
    1. To identify a Payee record from an Employee record, enter the Employee name into the Global Search (see Figure 1).
    2. Select the Employee record from the suggestions provided.
    3. Open the Related tab.
    4. Identify the Payee related list.
    5. Select the Payee record (see Figure 2).
Screenshot from QRG Create Payee Withholdings - AU PAYG
Screenshot from QRG Create Payee Withholdings - AU PAYG
  1. Click Withholdings from the tab options (see Figure 3)
  2. Click New
Screenshot from QRG Create Payee Withholdings - AU PAYG
  1. Select AU PAYG from the available record types and click Next (see Figure 4).
Screenshot from QRG Create Payee Withholdings - AU PAYG
  1. Populate the following required fields to provide the base details of the Payee Withholding (see Figure 5):
    1. Employee
    2. Payee
    3. Effective Date
    4. ATO Income Classification
    5. Australian Resident
    6. Claim Tax Free
    7. STSL
    8. Approved Working Holiday Maker
    9. Basis of Payment
    10. Additional Week/Fortnight
    11. Medicare Levy Exemption
  2. Populate the following optional fields as needed:
    1. If the Payee is PAYG exempt, detail the reason for the exemption in the PAYG Exempt Reason field.
    2. To ensure PAYG Withholdings are recorded with the ATO against the Payee’s existing TFN, populate the Tax File Number field. If the TFN is not available, leave this field blank and instead select from the picklist options provided in the Reason TFN Not Provided field.
    3. To apply an ATO variation to PAYG Withholdings for this Payee, populate the Tax Variation Percentage field.
    4. To ensure any eligible tax offsets are calculated against Payee PAYG Withholdings, select from the picklist options for the Seniors Offset and Zone Offset fields. Populate the Zone Offset or Other Amount field with the annual offset amount, if applicable (Figure 6).
    5. If the Tax File Number has not been provided and the Employer is now going to apply the higher rate of PAYG, the No TFN Apply Higher Rate field must be populated. To action this change, Payroll Users need to create a new PAYG Payee Withholding record reflecting these changes, with the original Withholding record expiring the day prior to the Effective Date of the new record.
    6. To set a fixed term for the Payee Withholding record, or if the details are no longer applicable and should be replaced with a new record, populate the Expiry Date field. If left blank, no expiry date will apply.
    7. To prevent the Status of the Payee Withholding from being automatically updated by the automatic status update scheduled job, check the Exclude From Auto Update checkbox.
    8. If the Payee is an Approved Working Holiday Maker or Inbound Assignee to Australia, or if they are a Foreign Employment Income, the field Country of Visa/Work needs to be populated with the relevant country from the list available.
Payroll Users are reminded again that if 28 days have expired since the original PAYG Payee Withholding has been completed, and the Employee has not provided their Tax File Number, Payroll Users need to expire the existing Payee Withholding and create a new one effective the following day, with the No TFN Apply Higher Rate field populated as Yes.
Screenshot from QRG Create Payee Withholdings - AU PAYG
The Pay Batch Event field will be automatically populated upon saving the record, and should not be manually entered.
The Status of the record will be automatically updated upon saving the record, based on the Start Date and End Date (see Figure 5).
The External ID field will be automatically populated if required for system integration.
  1. Click Save .
Screenshot from QRG Create Payee Withholdings - AU PAYG
A new AU PAYG Payee Withholding record is now created (see Figure 7).
Screenshot from QRG Create Payee Withholdings - AU PAYG
Payee Withholding records CANNOT be deleted if they have related records or are used in other records. Deleting records is not recommended unless absolutely essential.
  1. To modify an existing Payee Withholding record, open the required record and select the Edit button available on the top right side of the page. You can also double click within fields that need editing or just click on the pencil icon that appears within fields when hovering with your cursor.
  2. When complete, click on the Save button.

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Field Descriptions

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Further Information