Tax Treatment Regular is applicable when the Payee is An Australian resident for tax purposes, has provided a valid Tax File Number or using a relevant Exemption Tax File Number per the Tax File Number Declaration (NAT 3092).

 

 

 

Tax Treatment Code is disabled and automatically generates a unique Identifier based on the ATO's requirements, which determines the applicable ATO Taxation Schedule for the appropriate Pay Rates, Allowances and Deductions. 

👉 If the second identifier is;

• T: PAYGW is calculated per Schedule 1 - Tax Scale 2 (NAT 1004). 
• N: PAYGW is calculated per Schedule 1 - Tax Scale 1 (NAT 1004). 

 

👉 If the third identifier is S;

• Schedule 8 - Tax-free threshold claimed or foreign resident (NAT 3539) is applicable if the second identifier is T.
• Schedule 8 - No tax-free threshold claimed (NAT 3539) is applicable if the second identifier is N.

 

👉 If the fifth identifier is;

• F: PAYGW is calculated per Schedule 1 - Tax Scale 5 (NAT 1004).
• H: PAYGW is calculated per Schedule 1 - Tax Scale 6 (NAT 1004).

 

👉 If the sixth identifier is 0 - 9 or A, Schedule 1 - Medicare Levy Parameters is applicable.

 

Income Stream defaults to Salary and Wages and allows you to select Closely Held Payee if required (an individual who is directly related to the entity from which they receive payment).

 

Add to Tax allows you to define the set dollar amount or the percentage of the Total Gross to be added to PAYGW in Process (Step 3 of the Pay Run).

 

Tax Free Threshold assists in determining the applicable Tax Scale under Schedule 1.

 

Student and Training Support Loans (STSL) is used to define that the Payee has returned the relevant documentation to advise they are repaying a Student and Training Support Loan.

 

Employment Basis is based on the Payees' regularity of work and entitlement to Leave.

 

Date Signed and Payee Signature Present? indicate the date the Payee signed and returned the physical Tax File Number Declaration to you.