Add a worker’s tax information

Lumary WFM - This article explains how to add tax file details to payee withholdings.

The employee’s tax file details are stored in payee withholdings.

Required and supported packages

Available with: Lumary WFM (Payroll)

Supported in: Lumary DC

This article assumes that you have already created a new payee record or have access to an existing payee record. If you have not completed those steps, head over to create a payee record.

To create tax file details:

1. While on the payee record as part of creating a payee record, click on the Withholdings tab.
2. Click New against the Payee Withholdings sub-tab and select AU PAYG as the record type.
3. Fill in the following key information including:

Field	Purpose
* Employee	Employee record this payee withholding record relates to. This must match the employee of the payee.
* Payee	Payee record this payee withholding record relates to.
* Effective Date	Date the withholding will become effective. Withholdings will not be paid before this date.
* ATO Income Classification	Associated ATO income classification for this PAYG withholding.
* Tax File Number	Tax file number of the payee which must be provided in a valid ATO format.
* Australian Resident	Indicates whether payee is an Australian resident for PAYG purposes.
* Claim Tax Free	Indicates whether the payee wishes to claim the ATO allowable tax free threshold.
* STSL	Indicates whether the payee wishes to make STSL repayments to the ATO via their PAYG withholding.
* Approved Working Holiday Maker	Indicates whether the payee is an approved working holiday maker working for an approved employer, and therefore will have their PAYG tax calculated as per the ATO tax table for working holiday makers.
* No TFN Apply Higher Rate	When yes is selected the highest ATO tax rate will be applied based on current tax scales.
* Basis of Payment	Type of arrangement between the payment entity and the payee.
* Additional Week/Fortnight	Indicates that the payee has elected to pay additional tax, as per ATO schedule, where there is additional week or fortnight in a year.
* Medicare Levy Exemption	Indicates whether the payee has provided an ATO declaration and which type of Medicare Levy Exemption being claimed.
* PAYG Exempt	Indicates that PAYG calculations will not be applied to this Payee.

4. Once all relevant fields are filled in, click on the Save button. The AU Tax Scale will also be automatically calculated based on the information provided.

Once you've added tax information, you can add the worker's superannuation information.