Staff that are classified as "Working Holiday Makers" need to be configured in the ClockOn system in order to be reported correctly to the ATO via the STP setup. The following article details the steps for this process.
This article contains the following items;
Registration
Before you start you will need to ensure that you have registered your business as a pay-as-you-go (PAYG) withholding for more information on this please see the ATO's Employer Registration for working holiday makers article.
Once this process has been done you will need to update your registration status through the Locations screen as shown below.
Employee Setup
The setup for Working Holiday Maker employees is similar to a standard employee with the following exceptions.
- Gross Pay Type and Country
- Tax Rates
To adjust these settings open and edit the Employee Details
Open the Pay Tab screen.
Gross Pay Type and Country
STP phase 2 requires employees to have a Gross Pay Type set against each employee, in this case, this needs to be set to the Working Holiday Makers option. When selecting this option, you will also need to indicate the employee's Country of origin.
Tax Rates
The tax set up for working holiday makers is slightly different from a standard employee in that they generally use a flat rate depending on their yearly earnings to date.
PLEASE NOTE: If the employee passes to the next threshold within the year, you will need to manually adjust the category to ensure that correct rate is taken at payroll.
For the current tax rates and payment thresholds for Working Holiday Makers, please refer to the tax table provided by the ATO https://www.ato.gov.au/Rates/Schedule-15---Tax-table-for-working-holiday-makers/.
For more information regarding your requirements for Working Holiday Makers please refer to the ATO's documentation at https://www.ato.gov.au/Individuals/coming-to-australia-or-going-overseas/Coming-to-Australia/Working-holiday-makers/.