Taxation and Medicare
(Payee Master File)

Taxation and Medicare

Contains four sections - Taxation, Medicare, Payroll Tax and Beneficiary.

Taxation

Tax Treatment is based on the Residency for Taxation Purposes and the Tax File Number.

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. .

Income Stream defaults to Salary and Wages and allows you to select Closely Held Payee if required (an individual 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).

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

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

Tax Free Threshold is disabled if;

Tax Free Threshold is hidden if

Tax Treatment is set to No TFN.

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

Student and Training Support Loans (STSL) is disabled if;

TFN Exemption Code 333-333-333 is entered, or
Tax Treatment is set to Working Holiday Maker, Horticulturists and Shearers or Seasonal Worker Programme.

Student and Training Support Loans (STSL) is hidden if

Tax Treatment is set to No TFN.

Senior Australians and Pensioners Tax Offset (SAPTO) defines that the Payee has returned the relevant documentation to advise they are a Senior and Pensioner and the offset they need to claim,

Single
Member of a Couple
Member of an Illness-separated Couple.

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

Medicare

🎯 Medicare is only available when Tax Treatment is Regular or Seniors and Pensioners.

Medicare Levy Surcharge (MLS) is applicable when the Payee, their spouse and dependent children do not have an appropriate level of private patient hospital cover and earn above a certain income.

🎯 Medicare Levy Exemption (MLE) and Medicare Levy Reduction (MLR) are disabled if Tax Free Threshold is not selected or Medicare Levy Surcharge (MLS) is selected.

Medicare Levy Exemption is applicable when the Payee is claiming an exemption from paying the Medicare Levy due to a Medical exemption, the number of Dependants they maintain, being a Foreign resident or not being entitled to Medicare benefits.

🎯 Medicare Levy Exemption (MLE) is disabled if Tax Free Threshold is not selected.

🎯 Medicare Levy Surcharge (MLS) is disabled if Medicare Levy Exemption (MLE) is selected.

🎯 Medicare Levy Reduction (MLR) is disabled if Medicare Levy Exemption (MLE) is set to Full.

Medicare Levy Reduction is applicable when the Payees' or families' taxable income is below a certain threshold.

🎯 Medicare Levy Reduction (MLR) is disabled if Tax Free Threshold is not selected.

🎯 Medicare Levy Surcharge (MLS) is disabled if Medicare Levy Reduction (MLR) is selected.

Payroll Tax

State/Territory (Payroll Tax): allows you to select the State or Territory the wages paid to this Payee must be reported to in the Payroll Tax (SRO) Report.

Apprentice / Trainee: enables you to select if this Payee is an Apprentice or Trainee for Payroll Tax Purposes

Assign Prior Pay Runs: enables you to change the State/Territory assigned to the current Pay Runs to the option selected in State/Territory (Payroll Tax).

If pay runs can be changed, the Reassign (Payroll Tax) Details On Prior Pay Runs is shown.

If no pay runs can be changed, the Unable To Assign (Payroll Tax) To Prior Pay Runs is shown.

Beneficiary

Type of Beneficiary: defines the person or entity your Payee has named in their will or insurance policy to receive the death benefit payment.

STP Payee Payroll ID: Unique Payee Identifier which may differ from the Payee Code. Typically alphanumeric (Aa - Zz, 0 - 9).

Beneficiary TFN: Unique Identifying Number assigned to the Beneficiary by tax authorities OR an Exemption Number (Trustee ONLY) if the Beneficiary has not provided their TFN.