Talking tax with new workers

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Completing a tax file number declaration

The ATO is reminding employers that have taken on new employees that those employees can complete a TFN declaration through ATO online services, and that this is an easy way for them to provide both their employer and the ATO with the information needed.

If a new employee has a myGov account linked to the ATO, they can:

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

This sends the TFN declaration details straight to the ATO, so the employer doesn’t have to.

Employees will need their employer’s ABN to complete the form and, once they’ve submitted it, they need to print it and give their employer the summary of their tax details so the employer can input the data into their system.

If an employer’s payroll software can link to the online commencement forms, it will automatically receive any new employees’ information from the ATO, saving them time spent otherwise entering the information manually.

Employers can also use the New employment form to collect a range of information contained in other forms, and employees can use it 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.

They can also use it to update their tax circumstances with their employer; for example, if their residency status has changed or they are claiming the tax-free threshold from a different employer.

However, employers can continue to use their current processes when preferred, including providing a paper TFN declaration where employees can’t create a myGov account or don’t have access to the internet.

How the myGov update affects taxpayers

Taxpayers using myGov will see that it has recently been updated with a new look and more features.

When signed in to myGov, you might receive notifications through ‘Payments and claims’ from other government services, such as Centrelink.

However, the ATO has stated that it will not communicate using this feature.  Instead, the ATO will continue to send messages to the myGov Inbox, and to tax agents on behalf of their clients, if that’s their communication preference.

Therefore, you don’t need to do anything different, and can still:

  • find myGov at the same website address (i.e. my.gov.au)
  • sign in using their current sign-in details, and
  • have access to all their linked services, including the ATO.

Ensuring that you have the right systems and processes in place can make managing your business easier and less stressful, plus it will save you time and money.  With the development of cloud systems many of your business processes can be integrated to make managing your business. Contact the team at Omnis Group in West Perth on 08 9380 3555 to find out more.