Before you can submit an electronic TFN declaration or STP Update, you will need to configure your portal to connect with the ATO. There are a few different options for TFN Declarations, depending on whether you want them to automatically be submitted or not.
Set up Electronic TFN Submissions
Go to Config > Company Management > select the entity > Payroll.
In the Electronic TFN Declaration section, tick the ‘Enable electronic TFN Declaration’ checkbox.
Set the Integration to Automatic or Manual to determine how the system will treat any submissions with errors.
- Automatic will let the system pick up your saved myGovID M2M Credential information when making submissions to the ATO. The initial submission will be queued automatically and the system will continue to try and send a failed or errored batch to the ATO.
- Manual will still automatically queue the initial submission. If the submission fails, the system will not try to resend to the ATO until you fix the errors and attempt to resend manually.
Tick the ‘Move employee into highest tax bracket automatically when no TFN has been submitted within 28 days’ checkbox if you want to automate an employee’s tax table change if no TFN is submitted within this time.
Upload the myGovID M2M Credential for your entity.
Automatic Update to Tax Tables When No TFN is Supplied
The option to 'Move employee into highest tax bracket automatically when no TFN has been submitted' will specify the number of days that has been configured for your portal. As a default, this is set to 28 days, however may differ in your portal.
After the specified number of days from the Employment Start Date, an employee will be moved onto the highest marginal tax table if they have not submitted their TFN declaration.
For this functionality to work, you will need to ensure that the 'No Tax File Number Resident' tax table has been enabled in Config > Payroll > Tax Tables.
Please note that the due date is set upon creation of the employee profile. If you manually change the Employment Start Date after this point, this will not reset the due date.
Employees who have submitted a TFN declaration stating that they have applied for a tax file number will still be moved across to the highest marginal tax table after the specified number of days, until the TFN is supplied.
Monitor For Overdue TFN Declarations
Overdue TFN declarations can be monitored in the Taxation Details Report. If you've enabled the above functionality, you will need to either ensure that the related employee has submitted their TFN declaration prior to their next pay run, or be aware that they may be taxed at a higher rate.
Employees who have been flagged as overdue can still submit their TFN declaration prior to their next pay being processed, and the selections that they make will be applied in that pay run. When the pay run is finalised and the STP Submission message is sent, it will contain:
- the employee's tax treatment code (ie the updated code based on the selections they've made in their TFN declaration); and,
- the employee's pay data (which will have that tax treatment applied).