Question

What is the tax treatment code?

Answer

The tax treatment code is a six-character code generated by the payroll platform based on an employee’s tax settings and reported to the ATO through each STP event. This code is an abbreviated way of telling the ATO about the factors that can influence the amount withheld from payments to employees.

The six-character tax treatment code comprises a combination of

• Tax scale category.
• Options within each category.
• Study and Training Support Loan (STSL) status.
• Medicare Levy settings.

Once each employee has the correct settings applied, we will auto-generate the tax treatment code. To read more information on setting up employee’s tax settings, please refer to the following article.