Tax and compliance settings for earnings are configured in the Tax and Compliance tab of the Earnings tab of Payroll Setup > Earnings and Deductions.
Before You Begin: For general information about tax and compliance details for earning definitions, see
Note the following about the top-level settings for Australian earnings:
- The system tax and compliance rules that come preconfigured with Dayforce have Normal selected from the Earning Type drop-down list.
- For Australian earning definitions, select the Contractor Payroll option in the Process for Employment drop-down list to create a dedicated earning definition for contractors. Note: Pensioner Payroll isn’t applicable for Australian earning definitions.
| Settings | Description |
|---|---|
| General | |
| PAYG | Select this checkbox to indicate that the earning is subject to employee pay as you go (PAYG) tax. |
| Medicare |
Select this checkbox to indicate that the earning is subject to the employee Medicare Levy. If this checkbox is selected, Medicare is included in the PAYG total. |
| Superannuation | Select this checkbox to indicate that the earning is subject to employer superannuation contributions. |
| Fringe Benefit Tax Exempt |
Select this checkbox to indicate whether the earning is subject to the employer fringe benefits tax (FBT) exemption. |
| Fringe Benefit Tax | Select this checkbox to indicate that the earning is subject to the employer fringe benefits tax (FBT) (that is, the FBT is non-exempt). |
| Is Other Allowance | Select this checkbox to indicate that the earning is set up as part of another allowance. |
| Allowances | |
| Allowances |
Drop-down list to report the allowance as taxable or non-taxable depending on the business operations and ATO exemptions. Select an allowance type from one of the following options:
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