Available for the following plans: Employment Lite, Employment Plus, Employment Unlimited
Available for the following Payroll plans: Standard, Premium, Core Payroll, Unlimited+Payroll

Sometimes an employee's tax declaration needs updating when their circumstances change. These changes can include needing to update their Tax File Number (TFN) right through to changing their record to reflect that they no longer have a Higher Education Loan Program (HELP), Student Startup Loan (SSL) or Trade Support Loan (TSL) debt.

The Tax Declaration feature is where you update these details if they change, with the Payroll classic platform reflecting these changes throughout the entire platform. This means there is only one place you need to update tax declaration details if they change, ensuring your employee records on the Payroll classic platform are always up to date.

Warning

If you use the Employment Hero platform, you will need to update an employee's tax details on your Employment Hero platform and these changes will then sync over to your Payroll classic platform. The Employment Hero platform is the source of truth for these details, not the Payroll classic platform. To read further details on this feature, you can refer to this article.

Maintain

The below premise will walk you through how to edit your employees' tax details.

Edit employee tax details

Log into your Employment Hero Payroll classic platform.
Click the Employee menu.
Click the List submenu.
Click on the employee who needs split earnings enabled.
Click the Tax File Declaration button.
Complete the following fields:
- Tax file number.
- Previous surname.
- Employment type:
  - Full time.
  - Part time.
  - Labour hire.
  - Superannuation income stream:
    - Contractor ABN.
- Tax declaration options:
  - Australian for tax purposes:
    - Claim tax-free threshold.
  - Is approved working holiday maker:
    - As of x date.
    - Visa country.
  - Claim seniors and pensioners tax offset.
  - Claim zone, overseas forces or dependent tax offset.
  - Has accumulated STSL debt:
    - Calculate STSL on taxable earnings.
    - Calculate STSL on repayment income.
  - Is a seasonal worker.
  - Has approved withholding variation:
    - X percentage.
- Date signed.
Select one of the following STP Tax Categories:
- Not applicable.
- Actor.
- Horticulturist and shearer.
- Senior and pensioner.
- ATO defined.
- Daily casual.
Click the Save button.

Important

Applying any one of the tier settings in the platform will not result in additional PAYG automatically being withheld from the employee in the pay run. Rather, a recurring tax adjustment can be set up - using the 'percentage of taxable earnings' option, with the percentage amount reflecting the option chosen by the employee in the Medicare levy variation declaration form.

Explore related content

Declare a Medicare levy variation for Single Touch Payroll (STP) Phase 2 FAQ This FAQ article answers a common question we receive about how to declare a medicare levy variation.
Mark a user as a closely held employee FAQ This FAQ answers a common question we receive around how do I mark a user as a closely held employee for STP reporting.