HELP Debt - Payroll Premier

Samantha_9713244

Hi,

I have a new employee commencing who has a HELP Debt (first time I have encountered this)

I understand that if she reaches the threshold that we deduct additional PAYG and submit to the ATO via our PAYG payments but when setting up the new employee I am not sure what TAX Scale to select - Options that relate to HELP are:

I am not sure what they mean and which would be correct

Any help would be appreciated.

Thanks

Acctd4

Hi Samantha

You've not posted specifically in the Payroll Premier category but from your screenshot, these options refer to the employee's tax circumstances.

All of these options are on the "Tax File Number Declaration Form" ("TFN Dec") that new employees must complete, either online via their myGov account or on a paper form.

"TFT" stands for "Tax Free Threshold" so the options relating to that are whether the employee is claiming the TFT or not. (Most employees are claiming it unless they have other employment or income from other sources so you will need to confirm this from the TFT declaration)

"Non-Resident" relates to their status for tax purposes. NOTE This is NOT necessarily the same as their status with immigration & is also not relevant to citizenship either. Again, this option will have been indicated on the TFN Dec.

The "Medicare ..." ones relate to the employee's tax residency status (eg non-residents are exempt from paying the Medicare Levy), or whether they are on a low income & therefore pay a reduced/no Medicare Levy. NOTE: I am yet to see an employee claim this as most are not aware of &/or don't understand it, but again, check the TFN Dec to confirm 😊

When the employee does their tax return, all these applicable circumstances will be applied & will determine the employee's tax payable/refund position.