Payroll Guru - Tax File Numbers and PAYG

This guide contains the following information:

  • Default tax file numbers
  • PAYG calculation
  • PAYG rounding
  • Under 18 no-tax ruling

Default tax file numbers

  • A new payee has not made a TFN declaration, but 28 days have not passed – use the code 111 111 111.
  • The payee is under 18 years of age and earnings do not exceed $350 per week, $700 per fortnight or $1,517 per month – use 333 333 333.
  • The payee is an Australian Government pensioner – use 444 444 444.
  • The payee chooses not to quote a TFN and has not claimed an exemption from quoting a TFN or does not fit into any of these categories – use 000 000 000.

PAYG calculation

Payroll Guru calculates PAYG based on the ATO tax withheld algorithm. For more information, see:

https://www.ato.gov.au/business/payg-withholding/

PAYG rounding

PAYG does NOT need to be rounded on payslips, it does however need to be rounded on the PAYG summaries and Instalment Activity Statements.

Under 18 no-tax ruling 

Payroll Guru will apply the no-tax under 18 ruling if the employee meets the following criteria:

1. the employee is under 18
2. the employee is exempt from having a TFN, and is therefore using 333 333 333.
3. the employee is earning under the weekly / fortnightly threshold
4. the employee is claiming the tax-free threshold

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