- Tax Details Changes
- Closely Held Payees
As part of STP Phase 2, the Personal Details page will include more fields to be completed. The migration of the new look page will be carried out gradually for all current clients. You should have already completed Stage 1, but if not, please refer to Stage 1 - to be completed before your first payroll in July.
You will receive a message on your Dashboard when your organisation has been changed over. We recommend you review and complete the new necessary fields on the Personal Details page for each employee, as soon as you receive this notification on the Dashboard.
You are currently already providing some employment information through STP to ATO, such as an employee’s start and finish date, then the additional information through an employee's Tax File Number (TFN) declaration.
Once you are STP Phase 2 enabled, which will be Stage 3 in CloudPayroll, you will no longer be required to provide the TFN declaration to the ATO, as this will be reported through STP to the ATO when you process a payroll.
To accommodate these changes, CloudPayroll has released a new look Tax Details section in your employees' Personal Details page, to align with the current TFN declaration.
Employment basis is now a new mandatory field, so you will need to mark under each employee whether the employee is:
- Full Time
- Part Time
The following new fields should automatically default based on the employees current tax scale, but if you have any Working Holiday Makers you will need to check and complete an extra field.
The most common selection will be Australian resident for tax purposes, if your employees are currently set up on tax scale 1 or 2, the tax treatment and tax-free threshold will automatically update to the correct fields. However please change if required.
By selecting Foreign resident for tax purposes, the tax treatment and tax scale will automatically update to the correct fields.
The final option is Working Holiday Maker, by selecting this type, the tax treatment and tax scale will automatically update to the correct fields. However, you will now be required to complete the employees Country of Origin.
This field will default for all current employees, based on their current tax scale. For new employees, you will need to select from the Tax Free Threshold option, if the employee has Claimed or Not Claimed the tax free threshold. This is identified on the current TFN declaration under question 9 (as at the 01/10/2021).
If your employee has a Higher Education Loan Program (HELP), VET Student Loan (VSL), Financial Supplement (FS), Student Start-up Loan (SSL) or Trade Support Loans (TSL) debt, you will notice this has been merged into one option, rather than the previous two options. This is because all the above are treated the same when it comes to tax deductions. This is identified on the current TFN declaration under question 10 (as at the 01/10/2021).
After making any changes please ensure you press Save at end of Personal Details page, to save your changes.
If you have any employees that are Closely Held, you will now need to mark these employees in CloudPayroll and start reporting them through STP.
To mark an employee as closely held, please firstly go to Setup > Organisation > Defaults. Under New Person Default Values, tick the Allow closely held payees box and then scroll to the bottom of the page to Save.
If you no go into the employees personal details page, you will see a new tick box appear under Tax Details, to tick the employee as Closely Held Payee, tick this and save the page.