How do I change the Tax File Number (TFN) for a Payee?

How to change the Tax File Number (TFN) for a Payee.

Select Payees from the side navigation menu.

Locate the Payee you require by manually scrolling through the Payee List, entering the name into Search or using Show Advanced Filters.

Once the Payee has been located, select Actions > Edit.

🎯 Edit is unavailable if the Payee is included in an unposted Pay Run. To edit the Payee, the Payee must either be removed from the Pay Run or the Pay Run must be posted/reported to the ATO.

Select the Pencil (Edit) Icon to change the Tax File Number (TFN), as required.

The Tax File Number is Invalid Alert Text is displayed when an invalid Tax File Number is entered, regardless of the setting in Residency for Taxation Purposes.

The Commenced working more than 28 days ago Alert Text is displayed when Exemption TFN 111-111-111 is entered when Residency for Taxation Purposes is set to either Working Holiday Maker or Australian Resident.

The Equal to or older than 18 Years of Age Alert Text is displayed when Exemption TFN 333-3333-333 is entered when Residency for Taxation Purposes is set to Australian Resident.

The Younger than 60 Years of Age Alert Text is displayed when Exemption TFN 444-444-444 is entered when Residency for Taxation Purposes is set to Australian Resident.

Tax File Number Not Quoted Information Message

The Tax File Number Not Quoted Information Message is displayed when Exemption TFN 000-000-000 is entered.

Once Acknowledge is selected, the Payee's Tax Treatment is updated. If the Payee's Tax Treatment was;

Regular, Seniors and Pensioners, Horticulturists and Shearers or Foreign Resident,
- Tax Treatment is changed to No TFN. Until a valid Tax File Number is entered, any payments made to the Payee will be taxed per Schedule 1, Scale 4.
Seasonal Worker Programme,
- Tax Treatment remains set to Seasonal Worker Programme per the ATO's requirements.
Working Holiday Maker,
- Tax Treatment remains set to Working Holiday Maker per the ATO's requirements.

Tax File Number Updated Information Message

The Tax File Number Updated Information Message is displayed when the Tax File Number has been changed.

Once Acknowledge is selected, Taxation and Medicare will be updated based on the new TFN.

Next, select Taxation and Medicare.

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

Confirm the Income Stream.

Deselect Tax Free Threshold if required per the Tax File Number Declaration (NAT 3092) or Withholding Declaration (NAT 3093).

The Tax Free Threshold is DISABLED and unable to be deselected if the Tax File Number is 333-333-333 or 444-444-444.

Select Student and Training Support Loans (STSL) if required per the Tax File Number Declaration (NAT 3092) or Withholding Declaration (NAT 3093).

Student and Training Support Loans (STSL) is DISABLED and cannot be selected if the Payees Tax File Number is 333-333-333.

If Tax Treatment is set to Seniors and Pensioners, select the relevant Senior Australians and Pensioners Tax Offset (SAPTO) per Question 8 in Withholding Declaration (NAT 3093) or Question 6 in Withholding declaration – short version for Seniors and Pensioners (NAT 5072).

Next, navigate to Medicare If the Tax Treatment is Regular or Seniors and Pensioners

If the Payee answered Yes to Question 4. Select Increase the amounts withheld to cover the Medicare Levy Surcharge (MLS), then the relevant percentage.

If the Payee answered Yes to

Questions 5 and 6, select Medicare Levy Exemption (MLE), then Half.
Questions 5, 6, 8, 9 and/or 12, select: Medicare Levy Exemption (MLE) then Half.
Questions 5 and 7, select Medicare Levy Exemption (MLE), then Full.

If the Payee answered Yes to

Question 8, Question 9 and/or 12, select Medicare Levy Reduction (MLR), then Spouse and/or Dependent Children.
Questions 5, 6, 8, 9 and/or 12, select: Medicare Levy Reduction (MLR) then Spouse and/or Dependent Children.

Select Save to save your changes.