As well as being able to make pay items exempt from Payroll Tax in your Payroll Config, you can set the exemption status for Payroll Tax on Customers, Suppliers, or by Job for an employee.
Configure Payroll Tax Status for Customers
To set a customer as exempt from Payroll Tax:
Go to Users > Customers > select the customer > Default Settings.
Under Payroll Tax, tick the Exempt checkbox.
Configure Payroll Tax Status for Suppliers
If you'll be processing Payroll Tax for contractors, you will need to enable this setting in Company Management before you can edit the settings anywhere else
- Go to Config > Company Management > select the entity > Payroll.
Under Payroll for ABN Contractors, tick ‘Enable Payroll Tax for Suppliers’.
- Click Save.
Once this is done, you can set a supplier as exempt from Payroll Tax by following the steps below:
Go to Users > Suppliers > select the supplier > Supplier Information.
Tick the checkbox for ‘Payroll Tax Exempt’.
Configure Payroll Tax Status on a Job
To set a job as exempt from Payroll Tax:
- Go to Users > Employees > select the employee > select the job > Payroll Admin.
In the Payroll section, select the exemption status in the Payroll Tax drop-down field. You can set the job as exempt, non-exempt or pull through the Customer setting.
- Click Save.
The Payroll Tax drop-down field will not appear for employees if the entity has not been set to Liable for Payroll Tax. In its place, you will see ‘Payroll Entity is not liable for Payroll Tax’.
If a Supplier has been set as Payroll Tax exempt, this setting will also apply to any contractors’ jobs.