Talking tax with new employees

Talking Tax With New Employees

There is so much involved when hiring a new employee and it can be easy to get lost in the paperwork.

Many employers and employees are not aware that they can now complete their Tax File Number (TFN) declaration online. Doing so can take the load off you, as an employer, from submitting the paperwork and keeping paper trails.  

Tax File Declaration Form

The TFN declaration can be completed through the ATO online services, which will provide both the ATO and the employer with the information needed. The catch with this is that the employee will have to have their myGov account linked to the ATO. However, a majority of employees will already have a myGov account for their Medicare. 

Once the new employee has linked their myGov account to the ATO they can:

  • access ATO online services
  • go to the ‘Employment’ menu and
  • select ‘New employment’ and complete the form.

Completing the TFN declaration this way reduces the need for double handling paperwork as the details are sent straight to the ATO. This will free up your time as an employer with one less bit of paperwork to complete.

What information do I need?

Your new employee will need to have the business’s ABN in order to complete the form. Once they have submitted it, they are then able to print it or send their summary to you, the employer, allowing you to easily input their data into your payroll system. How technology can make our lives easier! Additionally, if your payroll software can link to the online commencement form, it will automatically receive any new employees’ information directly from the ATO. This will further save you time you would have spent manually entering the information.
As employers, you can also make use of the new employment form to collect a range of information that is contained inside of other forms. Doing so would allow a much more seamless experience for both the employee and employer to authorise variations to the amount to be withheld from their pay for tax or the Medicare levy, or to advise of their choice of super fund. Your employee can also use it to update their tax circumstances with their employer; for example, if their residence status has changed or they are claiming the tax-free threshold from a different employer.

What if I don't have a myGov account?

Employees that can’t create a myGov account or don’t have access to the internet? Fret not! Employers can continue to use the current process of paper TFN declarations.

Choose Whitson Dawson for accounting you can trust

Looking for friendly and trustworthy accountants in Mackay? Look no further than Whitson Dawson. We’re a family-owned business that prides itself on delivering outstanding services to our wide range of valued clients. From consulting and taxation advice to estate planning and auditing, you can trust us for honest, professional service exceeding expectations. Contact us today on (07) 4957 2985.

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