Before You Begin: To withhold PAYG tax from employees, you must set up the Australian Taxation Office (ATO) as a third party payee in the Payee Category field in the Payees tab in Payroll Setup > Third Party Payees. See Third Party Payee Configuration.
Before You Begin: Set up the legal entity's tax reference number in Org Set-up > Org Payroll Set-up > Legal Entity. In the Taxation Parameters tab, enter the Lodgment reference number in the PAYG Employer Reference Number field.
Payroll administrators can generate ABA files for PAYG withholding payments to ATO, and include other payments to payees of different system categories supported in Australia. Category examples are child support payments, garnishments, or a customer category with a link to deductions. See Third Party Payee Configuration. After you generate and download ABA files, payroll administrators can upload the ABA files to the corporate bank portal for approval and release of payments to respective payees.
Optionally, before you preview or generate ABA files, you can click the Additional Filter button to filter by:
- Payee Category: Supports third-party payee categories such as a child support payments, garnishments, Australian Taxation Office category or custom categories that are assigned to Australian payees.
- Payee: One or more active payees that use the EFT payment method.
- Legal Entity: One or more Australian legal entities with a PAYG Employer Reference Number to generate the ABA file.
When set up, payroll administrators can choose to generate ABA files based on the predefined payee's payment schedule or pay run pay date. Pay run pay date allows for more flexibility to pick committed pay runs under the Australia Third-Party Payments tab in Payroll > Post Commit Management.
To generate ABA files based on the pay run pay date:
- Go to Payroll > Post Commit Management and click the Australia Third Party Payments tab.
- Click the Pay Run Pay Date option to select the committed pay runs.
- In the Pay group drop-down list, select one or more pay groups.
- In the From and To fields, select a date range for pay dates of the committed pay runs.
- In the Pay Period section, select one or more pay periods.
- [Optional] Select the Combine Single File per customer bank account checkbox to combine the ABA files of legal entities into one file if they share the same source bank account.
- In the Payee Pay Date field, select the date of the desired payment to go in the ABA files for the applicable payees’ payments.
- [Optional] Click the Additional Filter button to filter by selected payees, payee categories, or legal entities before generating ABA files and then click Apply to set the filter before clicking Generate or Preview.
- [Optional] Click the Preview button to preview information that is included in the ABA file before generating so you can check for errors before uploading the ABA file. When you click Preview, you receive an Excel file named Third-party payments report_GENERATIONDATETIME.xlsx in your Message Center.
- Click Generate to generate ABA files. A table of payments with the Amount column is shown containing the amounts to be paid to third party payees with a lump sum associated with individual legal entities, or the individual source bank account if the Combine Single File per customer bank account checkbox is selected.
- [Optional] If there are many legal entities, select all or the desired legal entities and click Bulk Download to download the ABA files in bulk for third-party payments in selected pay runs. ABA files for payments are saved to your local computer in a ZIP file with the name TPRTY_{PAYDATE DOWNLOADDATE.zip}.
To generate ABA files based on s predefined payee’s schedule, select one of the following options:
- Payee Pay Date Range: A schedule of payments with From and To payee pay dates.
- Payee Payment Period: Shows a schedule of payments with a payee payment period within the From and To dates.
For more details, See Third Party Payments for Australian Payees in the Dayforce Implementation Guide.