Stay compliant with new tax updates

MYOB Staff Post Erik_V
25 Posts
MYOB Staff Post

We’ve updated MYOB Essentials with some important compliance changes for Australian businesses who hire working holiday makers or pay fringe benefits.

 

Working holiday makers

If you hire people on Working Holiday visa (subclass 417) or Work and Holiday visa (subclass 462), new taxation rules came into effect on 1 January 2017.

If you’re registered with the ATO to withhold tax at the working holiday maker tax rate, you need to assign a new tax table to your working holiday maker employees. If you’re not registered, you must use the appropriate foreign resident tax rate when paying working holiday makers.


To assign the new tax table to working holiday makers, go to your working holiday maker’s employee profile, and click into the Tax tab. Under Tax file number declaration, select Working holiday maker (visa subclasses 417 or 462).

 

Working holiday maker tax tableWorking holiday maker tax table

If you’ve registered with the ATO and have been adjusting the tax for working holiday makers using a Approved withholding variation, deselect that option before saving the employee’s tax details. This will ensure accurate tax withholding in future pay runs.

 

Approved withholding variationApproved withholding variation

Have holiday maker employees who started work prior to 1 January 2017? See our Working Holiday Maker help topic.


For more information about handling working holiday maker payments, see the ATO’s website.

 

Reportable fringe benefit changes

 

If you’re a business that falls under Section 57A of the Fringe Benefits Tax Assessment Act 1986, there are changes to how fringe benefits are reported on payment summaries.

 

Affected businesses are mainly not-for-profit organisations, such as public benevolent institutions, health promotion charities, some hospitals and public ambulance services.

 

If Section 57A applies to you, you need to report the fringe benefits that fall under that section on the payment summary, and show other reportable fringe benefits provided to the employees separately.


To help with these changes, we’ve added a new tab to the Payroll settings page called PAYG payment summaries.

 

PAYG payment summary settingsPAYG payment summary settings

 

If Section 57A applies to you, select the option under Reportable fringe benefits and click Save settings. This lets MYOB Essentials know that you need to report both non-exempt and exempt reportable fringe benefits and will add these fields when you producing your payment summaries.

 

Non-exempt and exempt reportable fringe benefit fieldsNon-exempt and exempt reportable fringe benefit fields

For more information on your payroll settings and Section 57A of the Fringe Benefits Tax Assessment Act 1986, see the Set up payroll help page.

 

For more information on payment summaries, see the Producing PAYG payment summaries help page.

2 Comments
Experienced Cover User ld71
18 Posts
Experienced Cover User

Not sure who looks after your help pages, but thought you should know that the Producing PAYG payment summaries help page needs to be updated regarding the ATO Business Portal as the statement about Google Chrome browser not being supported is incorrect and out of date. The ATO actually issued a downloadable AUSkey extension several months ago for Chrome users so we can definitely access the Business Portal -- I'm logged in using Chrome right now, in fact.

Also , the ATO Business Portal now advises that users of the Firefox browser need to download an updated version of the AUSkey extension to use the Business Portal.

MYOB Moderator Steven_M
20,772 Posts
MYOB Moderator

Hi @ld71

 

Thanks for the feedback in regards to the Help Article.

We have recently updated the Help Article: Producing PAYG payment summaries, in particular, the Create and lodge the EMPDUPE file section to be reflective of the recent changes to the Business Portal.


If you do require further assistance don't hesitate to post on the Forum again.