You can view tax authorities for Australian legal entities in Org Setup > Org Payroll Setup > Legal Entity by selecting an Australian legal entity, and then clicking the Tax Authorities tab. The tax authorities configured for the selected legal entity are displayed in the Tax Authorities tab.
You can also view tax authorities for Australia in Payroll Setup > Payroll Taxes in the Country column. You can sort the Country column to display the countries in alphabetical order.
In each of these locations, there are several kinds of tax withholding for Australian Payroll for employees and employers listed here:
- ER Super: Employer-paid super or superannuation contributions
- PAYG: Employee-paid Pay As You Go withholding
- Medicare Levy: Employee-paid Medicare tax
- Federal-HELP/SSL/TSL: Employee-paid student loan repayment
- Federal-SFSS: Employee-paid component student loan repayment
Each of these taxes are and described in greater detail as follows:
ER Super
- ER Super, or Employer-paid superannuation, isn’t technically a tax, though it is listed alongside the tax authorities. Rather, superannuation is an employer-paid benefit that is displayed on pay slips as a memo. Additional information is available in the topic Overview of Superannuation.
PAYG
- PAYG, or Pay As You Go withholding amounts, which are displayed on pay slips, are collected by an employer from payments the employer makes to:
- employees
- other workers (for example, contractors)
- businesses that don’t quote their Australian business number (ABN)
- PAYG rates are determined by the tax file number declaration form (or TFN declaration) filled out by an employee so that the employer can withhold the correct PAYG amounts from employee earnings.
- PAYG calculations for employees also factor in threshold limits for Schedule 1 PAYG withholding, Schedule 5 for calculating back payments, commissions, bonuses, and similar payments, and Schedule 15 for calculating pay for employees with Working Holiday Visas.
For general information about PAYG withholding, see https://www.ato.gov.au/Business/PAYG-withholding/.
Medicare Levy
The answers given in the TFN Declaration will determine which Scale to be applied to the employee. This isn’t displayed on pay slips.
Federal-HELP/SSL/TSL
Student loan repayment types, such as the HELP (Higher Education Loan Program), SSL (Student Start-up Loan), and TSL (Trade Support Loan) repayment amounts are calculated as part of the PAYG calculation. These amounts aren’t displayed on pay slips.
Federal-SFSS
Federal SFSS (Student Financial Supplement Scheme) is a component student loan repayment type that is calculated as part of the PAYG calculation. These amounts aren’t displayed on pay slips.