TFN Declaration and STP2

Most posts regarding this are over 2 years old.

If an employee has onboarded directly into MYOB, do we still need a new employee to complete a paper TFN Declaration form and then send it to the ATO or not?

Thanks in advance.

gavin12345
5 days ago
Hi Tanialmm

I would go by ATO instruction. An employer must either provide the employer with an TFN Declaration (paper or electronic) or complete this on the ATO website - where the employer can retrieve the details via an Event ID the employee gives to the employer.

The TFN Declaration instructs the employer regarding how much tax is to be deducted.

Once the employer has this information, it is sent with each pay to the ATO vis STP Phase 2. This simply replaces the need for the employer to send the TFN Declaration to the ATO. It does not remove the need for the employee to complete a TFN Declaration. During an audit the ATO can request original TFN Declaration form the employer.

Doreen_P - suggest you check this with the ATO. I think your statement below is incorrect.

Regards
Gavin

gavin12345
Ultimate User
5 days ago
Hi Tanialmm

I would go by ATO instruction. An employer must either provide the employer with an TFN Declaration (paper or electronic) or complete this on the ATO website - where the employer can retrieve the details via an Event ID the employee gives to the employer.

The TFN Declaration instructs the employer regarding how much tax is to be deducted.

Once the employer has this information, it is sent with each pay to the ATO vis STP Phase 2. This simply replaces the need for the employer to send the TFN Declaration to the ATO. It does not remove the need for the employee to complete a TFN Declaration. During an audit the ATO can request original TFN Declaration form the employer.

Doreen_P - suggest you check this with the ATO. I think your statement below is incorrect.

Regards
Gavin
Doreen_P
MYOB Moderator
5 days ago
Hi there Tanialmm,

With STP Phase 2, you no longer need to have your employees complete the TFN Declaration form. Instead, this information will be sent to the ATO when you report the employee's first pay run via STP reporting. More information on this is available through this link.

Best regards,

Doreen
- Tanialmm
  Experienced Cover User
  5 days ago
  Hi Doreen,
  So they still need to complete a TFN declaration but we don't need to send it to the ATO according to the link you provided. I think this is why I wasn't sure - I am finding different info when trying to get a definitive answer.
  This is what was there:
  Benefits of STP Phase 2
  Benefits for employers
  We'll use the STP Phase 2 information to streamline employer interactions. For example:
  You'll no longer have to send us your employees' tax file number (TFN) declarations. Your employees will provide it to you, and you'll need to keep it with your employee records.
  
  Best regards
  Tania
  - Doreen_P
    MYOB Moderator
    5 days ago
    Hey Tanialmm,
    
    You can check the part titled "What's changed from STP Phase 1?" from the link I've attached above. You'll be able to see the "Some of your payroll processes will change (for the better!)." Below is a screenshot of the part that I'm referring to.
    
    Best regards,
    
    Doreen