Employee Declarations

This activity allows you to record the employees tax declaration and tax offset details of Australia Statutory. The tax file number is a unique number given by Australian Tax Office upon application from Resident Australians for the purpose of tax deductions, filing returns and claiming credits. You can specify the accumulated debts like as Higher education loan program, Student Financial Supplement Scheme availed for educational purposes which have to be repaid during the employment. You can specify Medicare Levy details for availing Medicare Benefits. Medicare is levied based on certain parameters to categorize employees. While some pay additional surcharge, some are exempt from paying and some pay reduced levy. Pay As You Go (PAYG) is the system of withholding income tax in Australia is computed where employees income in the pay period is considered for computing tax amount.

Tax offsets is an amount which will directly reduce the tax amount based on dependents with low or no income, the area where the employee lives or lived during the income year. You can provide the dependent spouse tax offset, zone overseas tax offset, special tax offset and senior Australian tax offset details. You can also modify the existing details of an employee tax declaration.

Objective

This activity allows you to do the following

Prerequisites

Employee Code should have been defined through Employee Code Setup component.
Employee details should have been defined through Employee Personal Information component.
Employment details should have been defined through the Employment Information component.
All user defined values should have been defined through the HR General Information component.

Procedure

To record new employee tax declarations

To record employee tax declarations select Statutory → Australia Statutory → Administration Employee Declarations from the Business Process menu.
Choose the option from the Australia Statutory Setup Unit combo.
Enter the code that identifies the employee. Click the lens icon to retrieve an employee code from the Help on Employee screen. The system displays the name of the employee.
There are two tabs displayed viz. Tax Information and Tax Offset Information.
Click the Tax Information tab.
Choose the option from the Effective Period combo to access the history with the effective dates.
Choose Yes or No option to exempt from providing the tax file number.
Enter the number that identifies the tax file details.
Enter the application date of the tax file number.
Choose whether the employee is resident or non-resident.
Choose Yes or No option to specify whether the tax free threshold is claimed or not.
Choose Yes or No option to specify whether the additional surcharge is applicable or not.
Choose the option from Exemption from Medicare Levy. The system lists the options as Full, Half and None.
Choose the combined family income of the employee from a user defined list of options.
In the DEBT Declaration section, choose Yes or No to specify whether the accumulated higher education loan program debt is applicable for the employee or not.
Choose Yes or No to specify whether the accumulated student financial supplement scheme debt is applicable for the employee or not.
In the PAYG Variation Declaration section, choose an option from PAYG Upward Variation. The system lists the options asDownward Variation Amount, Downward Rate, None, Upward Variation Amount and Upward Rate.
Enter the amount of PAYG variation.
In the Attachments section, attach the tax file declaration of an employee. Click the folder icon to browse and select the file you want to attach.
Attach the Medicare Levy Declaration file of the employee. Click the folder icon to browse and select the file you want to attach.
Attach the PAYG Downward Declaration file of the employee. Click the folder icon to browse and select the file you want to attach.
Attach the PAYG upward Declaration file of the employee. Click the folder icon to browse and select the file you want to attach.
Attach the Other files of the employee. Click the folder icon to browse and select the file you want to attach.
In the Modification Details section, choose Correct option from Modification Option combo to save the modified details with current effective date.
Choose Update option from Modification Option combo to update the modified details with new effective date.

Note: While modifying the delcarations, you can use one of the two available modification options viz., "Correct" and "Update". If you choose the Correct option, the changes you make will come into effect in the existing record itself. If you choose the Update option, the system closes the existing version of the record and will create a new record containing the changes you make. You are to specify a new effective date which will become the effective date for the new record.

Enter the New Effective From date to validate the updated the records.
Enter relevant Remarks that pertaining to the tax declarations.
Click Submit to save the tax declaration details of the employee.

Note: The system saves the employee declaration details.

To edit the details of employee tax and offset declarations

To edit or update an existing employee tax and offset declarations select Statutory → Australia Statutory Administration → Employee Declarations from the Business Process menu.
Choose the option from the Australia Statutory Setup Unit combo.
Enter the code that identifies the employee. Click the lens icon to retrieve an employee code from the Help on Employee screen. The system displays the name of the employee.
Click Get to retrieve the tax declaration details.

The system retrieves and displays entire details of the specified employee code. Make required modifications to the data displayed. Refer Fields in this Screen topic for an explanation of the fields displayed.

Click Submit to save the tax declaration details of the employee.

Fields in this screen (Employee Declarations)

Field Name	Description	Type	Editable	Field Length	Mandatory	Remarks
Australia Statutory Setup Unit	Choose the Australia Statutory Setup Unit for which the tax declaration detail has to be recorded.	Combo	No		Yes
Employee Code	The code that identifies the employee to which the tax declaration is recorded.	Textbox	Yes	25	Yes	Click the lens icon to retrieve an employee code from the Help on Employee screen.
Employee Name	The employee name is displayed for the specified employee code.	Textbox	No	40	No
Tax Information Tab Access History
Effective Period	The option that indicates the effective period to access the history with the effective dates.	Combo	No		Yes	Use the drop-down values to view previous history data.
TFN and Residential Status
Exempt from providing TFN	The Yes or No flag indicates whether employee is exempt from providing tax file number for declaration.	Combo	No		Yes
Tax File Number (TFN)	The tax file number of the employee	Textbox	Yes	10	No	This field is not visible if the Exempt from providing TFN is Yes.
TFN Application Date	The application date of creation of tax file number.	Textbox	Yes		No	This field is not visible if the Exempt from providing TFN is Yes.
Domicile Status	The option indicates whether employee is resident or non-resident.	Combo	No		Yes
Tax Free Threshold Claimed	The Yes or No flag indicates whether the tax free threshold is claimed by the employee or not.	Combo	No		Yes
Medicare Levy Declaration Details
Additional Surcharge Applicable	The No or Yes flag indicates whether additional surcharge is applicable or not.	Combo	No		Yes
Exemption from Medicare Levy	The option indicates whether the exemption from medicare levy is full, half or none. The system displays the following options Full, Half and None.	Combo	No		No
Combined Family Income	The option that indicates the combined family income of the employee. The system displays a list of user defined incomes as options.	Combo	Yes		No
Eligibility	The system displays the eligibility	Textbox	No	15	No
DEBT Declaration
Accumulated HELP Debt	The Yes or No flag indicates whether the accumulated higher education loan program debt is applicable for the employee or not.	Combo	No		Yes
Accumulated SFSS Debt	The Yes or No fag indicates whether the accumulated student financial supplement scheme debt is applicable for the employee or not.	Combo	No		Yes
PAYG Variation Declaration
PAYG Upward Variation	The option that indicates the upward variation of the PAYG.	Combo	No		Yes
Variation Amount / Rate	The variation amount or rate of the PAYG.	Textbox	Yes	25	No
Attachments
TFN Declaration	Indicates the tax file number declaration to be attached	Textbox	No		No	Click the folder icon to browse and select the file you want to attach.
Medicare Levy Declaration	Indicates the medicare levy declaration to be attached	Textbox	No		No	Click the folder icon to browse and select the file you want to attach.
PAYG Downward Declaration	Indicates the PAYG downward declaration to be attached	Textbox	No		No	Click the folder icon to browse and select the file you want to attach.
PAYG Upward Declaration	Indicates the PAYG upward declaration to be attached	Textbox	No		No	Click the folder icon to browse and select the file you want to attach.
Others	Indicates the other declarations to be attached	Textbox	No		No	Click the folder icon to browse and select the file you want to attach.
Tax Offset Information Tab Access History
Effective Period	The option that indicates the effective period to access the history with the effective dates.	Combo	No	40	Yes	Use the drop-down values to view previous history data.
Dependent Spouse Tax Offset
Dependent Spouse Tax Offset Applicable	The Yes or No flag indicates whether the dependent spouse tax offset is applicable or not.	Combo	No		Yes
Eligible for Family Tax Benefit Part B	The Yes or No flag indicates whether the employee is eligible for family tax benefit part B.	Combo	No		Yes
Shared Care Rate	The option that indicates the shared care rate of the tax offset. The options listed are Full, Half and None.	Combo	Yes		No
Shared Care Rate Percentage	The percentage of the shared care rate.	Textbox	Yes	20	No
Zone, Overseas Tax Offset
Zone, Overseas Tax Offset Applicable	The Yes or No option flag indicates whether the Zone, Overseas Tax Offset is applicable to the employee or not	Combo	No		Yes
Zone Offset Component	The zone offset component of the employee. The system displays None, Notional Sole Parent Component, Notional Spouse Component and Dependent Children Component as options.	Combo	No		No
State of Residence	The option indicates the state of residence of the employee. The system displays a list of user defined states as options.	Combo	No		No
Area of Residence	The option indicates the area of residence of the employee. The list of areas that have been mapped to the selected states is displayed as options.	Combo	No		No
You belong to	The system displays the area where the employee belongs to.	Combo	No		No
Special Tax Offset
Special Tax Offset Applicable	The Yes or No flag indicates whether the special tax offset is applicable for the employee or not.	Combo	No		Yes
Special Offset Component	The special offset component of the employee. The system displays a list of user defined components as options.	Combo	No		No
Senior Australian Tax Offset
Senior Australian Tax Offset Applicable	The Yes or No flag indicates whether the senior Australian tax offset is applicable to the employee or not	Combo	No		Yes
Adjust Taxable Income in Previous Tax Year	The Adjust taxable income in previous tax year for the senior Australian offset.	Textbox	Yes	10	No
Tax Offset Category	The option indicates the tax offset category of the employee. The system displays a list of user defined categories as options.	Combo	No		No
Spouse eligible for Senior Australian Tax Offset	The Yes or No flag indicates whether spouse of the employee is eligible for Senior Australian Tax Offset.	Combo	No		No
Dependent Details Multiline
Name	The name of the dependent is displayed.	Textbox	No	40	No
Relationship	The relationship of the dependent is displayed	Textbox	No	40	No
Date of Birth	The date of birth of the dependent	Textbox	No	30	No
Occupation	The occupation of the occupation.	Textbox	No	40	No
Disability Status	The status of the disability of the dependent.	Textbox	No	40	No
Adjusted Taxable Income	The adjusted taxable income of the employee.	Textbox	Yes	30	Yes
Tax Offset Details
Dependent Spouse Tax Offset	The system displays the dependent spouse tax offset details of the employee.	Textbox	No		No
Zone / Overseas Tax Offset	The system displays the zone, overseas tax offset details of the employee.	Textbox	No		No
Special Tax Offset	The system displays the special tax offset details of the employee.	Textbox	No		No
Senior Australian Tax Offset	The system displays the senior Australian tax offset details of the employee.	Textbox	No		No
Attachments
Withholding Declaration	Indicates the withholding tax declaration to be attached	Textbox	No		No	Click the folder icon to browse and select the file you want to attach.
Others	Indicates the other tax declaration to be attached.	Textbox	Yes		No	Click the folder icon to browse and select the file you want to attach.
Modification Details
Modification Option	Choose the action that you want to perform. The options are Correct and Update.	Combo	Yes		Yes	If you choose Update then the system closes the existing details. You should mandatorily enter the New Effective date from which the details will become effective.
New Effective From	The new effective date of updated records from when the entries become valid.	Textbox	Yes
Remarks	Any remarks or additional modification information regarding the employee declarations details.	Textbox	Yes	250	250