What forms should I give to new employees?

Every employee needs to complete a form called a Tax file number declaration before you can pay them. You can get Tax file number declaration forms from most local newsagencies or alternatively, you can find a PDF version of this form on the CD that comes with Making the Most of MYOB Payroll. (If you need the instructions that go with this form, visit www.ato.gov.au and search for ‘NAT 3092’.)

Ideally, you should send new employees a Tax file number declaration with their offer of employment letter and ask them to bring the completed form on their first day. Failing this, make sure all employees complete a Tax file number declaration before their first payday: if they don’t, you’re meant to deduct tax from their pay at the rate of 48.5 percent (or 47 percent for non-residents).

Once the employee has completed their Tax file number declaration, make sure you post it to the Tax Office within 14 days. Store your copy of their form in a private place, away from the eyes of other employees.

If an employee requests that you tax them at a different rate (maybe they’re working a second job or they want to anticipate family tax benefits or rebates in advance), then they need to complete a Withholding declaration. Again, this form is available from your local newsagency and is also on the CD that comes with Making the Most of MYOB Payroll. (For the instructions that go with this form, visit www.ato.gov.au and search for ‘NAT 3093’.)

The contents from this page are taken from Making the Most of MYOB Payroll, 2nd edition, by Veechi Curtis, available online for only $19.95

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