Verification of TFN when entering a new employee.

Cheryl Medley
Cheryl Medley Member Posts: 102

When the TFN is entered for a new employee, the message 'not valid' comes up if the number is wrong. My query is, what does the check actually go against? Is it just a number that ATO has allotted or is it beside the name of the person involved? A client of mine has had a letter from ATO saying that an employee has given an incorrect TFN declaration, that the number doesn't match their records. The number that's on the declaration is accepted, so we aren't sure if the ATO is reading the number written differently from me. The employee only worked one week for my client back in April, so there's nothing we can do now about it, but it did start me thinking about the checking process.

As usual, I am long winded! Thank you in advance. Cheryl


  • Rav
    Rav Administrator, Reckon Staff Posts: 15,072 Community Manager Community Manager

    Hi Cheryl,

    I've checked in with the compliance team in regard to your query. There is an ATO algorithm that TFN's are checked and validated against. If Payroll Premier is not accepting the TFN being input then essentially its not meeting that ATO algorithm.

  • Cheryl Medley
    Cheryl Medley Member Posts: 102

    Thank you, Rav. The TFN the employee gave us has been accepted so perhaps the ATO at their physical end isn't reading the numbers correctly - ? The '7' does look like a '1' on the form, but it's definitely a '7' on her employee information sheet and Reckon accepted the number given. Cheers!