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Funwith4

Help with tax file numbers

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Funwith4

Hi, we own a small hospitality business. We've only had it for 7 months. After we had owned the business for just a few weeks, two of the staff members quit (it didn't end on great terms).

 

I've text them to ask for their TFN so I can complete their group certificates. One hasn't replied. The other has told me he doesn't need to give me his TFN because he earned less than a certain amount. Is this correct or is he being difficult? I'm a bit out of my depth with the book-work, I've never done the books for a business before so am learning as I go.

 

Thanks :)

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Coffeegirl

You should have gotten their TFNs before you did their first pay. If not, the tax office could have you withhold 47.5% (from memory) of their income. Did you deduct any tax from their wages before you paid them?

 

They need to complete a TFN declaration and send it to you so you can lodge with the ATO. If not you have technically paid them 'cash in hand'. I'm guessing the onus would be on them to declare the tax they paid.

 

And if he earned 'under the threshold' and you deducted tax from his pay, then he's an idiot not to give you the tax file number as he could get the tax he did pay refunded.

 

 

 

 

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Funwith4

I did ask for his TFN early on but it was never given to me and I didn't chase it up. These are both high school kids who only worked about 10 hours a week.

 

My DH did the pays, I'm not sure whether he withheld tax but I assume not. I'll ask him when he's home.

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JRA

I suggest you learn very quickly about what is required when you are running a business. Your accountant should be able to help you with that.

 

The ATO also some really good stuff on their website, but talking to your accountant is most appropriate.

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SplashingRainbows

I suggest you learn very quickly about what is required when you are running a business. Your accountant should be able to help you with that.

 

The ATO also some really good stuff on their website, but talking to your accountant is most appropriate.

 

So much this.

 

Easy way to get TFN forms back - no form, 47% tax withholding. You'd be surprised how quick that works. And funnily enough keeps you compliant with the law.

 

Did you get their super choice forms back?

 

Did you give them Fair Work Information statements? Fines for not doing so are horrendous.

 

These are basic things every employer needs to know.

 

Also, it's now your job to follow up. That's part of owning a business.

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Coffeegirl

You mentioned they were 'teens'. What age? DD is 15 and unless she earns over the threshold her work doesn't collect tax at all.

 

BUT she provided her TFN on the first day. Without that, they would have withheld the 47%.

 

 

We recently added the TFN requirement to all our new employee forms (where they give us their bank account and super details). Highlighted and bolded, that if they don't return the original TFN before their first pay, then we withhold the 47% tax until they do provide it. Payroll haven't had to chase anyone since we did that.

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Funwith4

Thank-you everyone... it's so over my head. DH has owned a business for 15 years (in a different field) so he's very business-savvy. I just thought I would ask here as he's at work at the moment, and I don't see him much anymore to discuss anything (don't get into hospitality - a warning!)

 

The kids are 15 and 17.

 

So does anyone know - is there an actual law that states you do not need to supply a TFN if you earn under a certain amount? I've googled and not found anything.

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wombats

Thank-you everyone... it's so over my head. DH has owned a business for 15 years (in a different field) so he's very business-savvy. I just thought I would ask here as he's at work at the moment, and I don't see him much anymore to discuss anything (don't get into hospitality - a warning!)

 

The kids are 15 and 17.

 

So does anyone know - is there an actual law that states you do not need to supply a TFN if you earn under a certain amount? I've googled and not found anything.

 

I believe that if you are earning money as an employee you do need to supply a TFN or the employer is required to withhold 47%. As an employer you don't know how much they earn - they could have ten jobs.

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Funwith4

I believe that if you are earning money as an employee you do need to supply a TFN or the employer is required to withhold 47%. As an employer you don't know how much they earn - they could have ten jobs.

 

That makes perfect sense to me. I think he's trying to be painful.

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PrincessPeach

 

So does anyone know - is there an actual law that states you do not need to supply a TFN if you earn under a certain amount? I've googled and not found anything.

 

Tax agent here and what everyone else has said is correct. If you do not supply a TFN to your employer they have to withhold 47.5% - even if it's a once off job.

 

He is having a lend. Basically to cover your butt you need to lodge the PAYG summary sheets to the ATO with the default TFN - I think it's 111 111 111 (I don't see many of them).

 

Also you need to post him a copy as well - I assume you have his address.

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