PAYG Witholding Payment Summary Changes
June 16, 2017 by Kasun Amarasinghe
The ATO recently finalised and published the latest specification for changes required for Self-printing pay as you go (PAYG) withholding payment summaries.
We have updated the self printing summary report in Saasu accordingly, and the changes are now live. Before running the report in Saasu to print out the payment summaries for the current financial year, it's best to double check the following in your employee setup and payroll settings;
- If you have employees working under a relevant visa which falls under the category of working holiday makers, go to their employee setup and ensure the right tax scale has been selected.
- If you are exempt from FBT under section 57A of the FBTAA 1986 click on the Cog icon in the menu > click on Settings > scroll down to the Payroll section and tick the option "Is exempt from FBT" shown below, and Save.
According to the 57A of the FBTAA 1986, the payer is exempt from paying FBT if they are;
- A registered public benevolent institution that is endorsed by the Commissioner of Taxation as eligible for exemption from Fringe benefits tax.
- A public hospital.
- A hospital carried on by a society or association that is a rebatable employer.
- A health promotion charity that is endorsed by the Commissioner of Taxation as eligible for exemption from Fringe benefits tax
- Provide a public ambulance service.
When you print the payment summaries for your employees, you will notice the following changes;
- A new "Type" field adjacent to Gross Payments. This will either have the values H - if the employee is a working holiday maker under a relevant Visa, or S.
- A new section labeled "Is the employer exempt from FBT under section 57A of the FBTAA 1986?", which has "Yes" and "No" option fields adjacent to it. If there is a reportable FBT amount, one of these options will be ticked based on the new setting mentioned above. If there is no reportable FBT amount for the period, these fields will be left blank.
If you need more information about working holiday maker employee setup in Saasu, we did a blog post about working holiday maker tax changes not too long ago when the new tax tables were published by the ATO. If you have any questions regarding these new changes to the payment summaries, please do not hesitate to get in touch with our service team via firstname.lastname@example.org