10.02.12 Onboarding (Employee Level Information)

Overview (Employee Level Information)

Onboarding (Employee Level Information)

Overview
TFN Declaration
Withholding Declaration
Field to STP Event Mappings

Overview

The ATO has determined that:

TFN declarations can be supplied via STP in Pay and Update Events.
Withholding information can be supplied via STP in Pay Events only.

The Payroll > Payroll Employee Maintenance > Declarations tab captures specific declaration information, including:

Declaration type
Declaration submission status

This allows the user to insert a row into the grid for a TFN Declaration or Withholding Declaration. The system is told to pick up and submit this information by having the Submission Status field set to 'Ready to Send'. Once the submission with the declaration information is successfully submitted, the system changes the Submission Status to 'Sent by STP'. Only the system can set this status.

TFN Declaration

A TFN Declaration is a replacement for the ATO TFN Declaration form and an STP submission of a TFN Declaration satisfies the ATO requirements for them.

See the table below for the detail of each element of an STP TFN Declaration.

Withholding Declaration

In STP terms a Withholding Declaration is the provision of the On-boarding Employment Details information without the declaration information. An STP Withholding Declaration updates the ATO on an employees Employment Details:

Payee Terminated Indicator
Payee Residency Status
Basis of Payment Code
Tax Free Threshold Claimed
Study and Training Loan Repayment Indicator
Student Financial Supplement Scheme Loan indicator

There is no declaration component to an STP Withholding Declaration.

The Declarations tab above includes the fields:

Tax Offset Amount
Senior Tax Offset Claimed

these are not included in an STP Withholding submission.

Field to STP Event Mappings

The table below contains the detail on the TFN and Withholding Declaration fields. Note the examples are for a TFN Declaration.

STP Event Field	Mandatory (Notes)	Notes (Commonly the ATO business definition is used)	Synergetic Source
Onboarding	No	On-boarding parent node	Payroll > Finalise STP > Process STP Only created for a TFN Declaration or Withholding declaration with a Payroll > Payroll Employee Maintenance > Declarations > Submission status of 'Ready To Send'. Note that this example is a TFN Declaration.
Employment Details	No	Employment Details parent node	Payroll > Finalise STP > Process STP Note that this example is a TFN Declaration.
Payee Terminated Indicator	No	Indication of the termination of the payer/payee relationship before the declaration/relationship has been reported to the ATO.	Payroll > Finalise STP > Process STP Note that this example is a TFN Declaration. Payroll > Payroll Employee Maintenance > General > Terminated Flag is on
Payee Residency Status	No	A code which identifies the residency status of an individual, for tax purposes.	Payroll > Finalise STP > Process STP Note that this example is a TFN Declaration. Payroll > Payroll Employee Maintenance > Declarations
Basis of Payment Code	No	The basis of payment indicates the type of arrangement between the payer and payee.	Payroll > Finalise STP > Process STP Note that this example is a TFN Declaration. Payroll > Payroll Employee Maintenance > Declarations
Tax Free Threshold Claimed	No	The tax-free threshold is the amount of income that can be earned each year that is not taxed (this threshold can vary each year). It is available only to people who are Australian residents for tax purposes.	Payroll > Finalise STP > Process STP Note that this example is a TFN Declaration. Payroll > Payroll Employee Maintenance > Declarations
Study and Training Loan Repayment Indicator	No	Indicates whether an individual has a study or training loan to determine whether additional withholding should be made from a payment to cover the compulsory repayments for these loans. This includes loans paid by the Australian Government to individuals undertaking higher education, trade apprenticeships and other training programs, but excludes loans paid under the Student Financial Supplement Scheme.	Payroll > Finalise STP > Process STP Note that this example is a TFN Declaration. Payroll > Payroll Employee Maintenance > Declarations
Student Financial Supplement Scheme Loan indicator	No	Indicates whether the tax payer has a Student Financial Supplement Scheme, which is a voluntary loan scheme for tertiary students to help cover their expenses while they studied. Five years after the loan is taken out the Tax Office becomes responsible for collecting the outstanding loan, and the loan becomes an accumulated Financial Supplement debt. Compulsory repayments of accumulated Financial Supplement debts are made through the tax system when the payee's taxable income is above the minimum threshold. Note: The Student Financial Supplement Scheme closed on 31 December 2003 and no new loans are being issued. There are no changes to the collection of existing financial supplement debts, which will continue to be collected through the tax system.	Payroll > Finalise STP > Process STP Note that this example is a TFN Declaration. Payroll > Payroll Employee Maintenance > Declarations
Payee Declaration	No	Payee Declaration parent node	Payroll > Finalise STP > Process STP Not included in a Withholding Declaration.
Payee Declaration Acceptance Indicator	Yes	Indicates that the terms stated in the Declaration Text have been accepted or declined.	Payroll > Finalise STP > Process STP Note that this example is a TFN Declaration. Payroll > Payroll Employee Maintenance > Declarations Not included in a Withholding Declaration.
Payee Date Declaration Signed	No	This is the date on which the declaration is signed by the reporting entity.	Payroll > Finalise STP > Process STP Payroll > Payroll Employee Maintenance > Declarations Not included in a Withholding Declaration