|Changes are constant in the new era of payroll. The way payroll can on-board new starters has changed as well.
Employers can continue their current processes such as offering paper forms, but here are the newer options:
Employees can link the following forms into their MyGov account:
· Tax file number declaration
· Superannuation (super) standard choice
· Withholding declaration
· Medicare levy variation declaration.
The forms will be pre-filled with their personal and tax details. This process will reduce time for the employee in completing these forms manually. It will contain personal data such as their TFN, residency status and education loans.
Employees can then provide a copy to their employer. Employers can then enter this information into their payroll system and keep the copy for their records. Employers do not need to send the printed copy to the ATO.
Click here for a sample of a form which you might see.
Note: Employees will still need to speak with their employers before using this function as they will need the company’s ABN and the default super fund if they select this option.
Employers enabled software
Employees can access on boarding forms through enabled payroll software. Once the forms are approved and submitted by the employee, the payroll software will request information from the ATO to prefill the forms.
The information is then fed back into the payroll system which includes the employee’s tax file number, residency status, tax free threshold and chosen super fund.
Through this set up there will be a significant reduction of data entry.
Employers should check with their software provider to find out if this service will be offered.
For more details on this big change please visit the following links: