payee definition

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					  Changes to wording related to electronic reporting
   specification Pay as you go (PAYG) withholding
payment summary annual report version 8.0 to clarify
Field definitions and Edit rules bought about by Super
                     simplification
List of changes to clarify the intent of Super Simplification and will
be incorporated in the next version to be published for electronic
reporting specification PAYG withholding payment summary
annual report.
Note: Text underlined denotes additional wording.
      Text that has a strikethrough has been removed.

Field           7.47 Payee tax file number
definition
V8.0            - the TFN quoted by the payee or an appropriate TFN code must be
                reported here.
Clarification   For employment termination payments, in the event the payment is
                due to the death of an employee, show either the TFN of the trustee
                for the deceased estate or the TFN of the dependant or non
                dependant of the deceased employee, whichever is applicable.
                .

                For superannuation lump sums paid due to another person’s death
                show either the TFN of the trustee for the deceased estate or non
                dependant of the deceased person, whichever is applicable.


Field           7.48 Payee date of birth
definition
V8.0
                   This field is mandatory for employment termination payments,
                superannuation income stream and superannuation lump sum
                payment summaries.


Clarification
                   This field is mandatory for life benefit employment termination
                payments, superannuation income stream and life benefit
                superannuation lump sum payment summaries. Leave blank if the
                payment is a death benefit termination payment or a superannuation
                lump sum because of the death of a person of whom the recipient is
                not a death benefit dependant.




Field           7.49 Payee surname
definition
V8.0            - must contain the payee’s surname. Where the payee has a legal
                single name only, this field must be completed.
Clarification   - must contain the payee’s surname. Where the payee has a legal
                single name only, this field must be completed. If the payment is due
                to another person’s death show either the name of the trustee for the
                deceased estate or beneficiary of the deceased person, whichever is
                applicable.

Field           7.61 Gross payments
definition
V8.0            - the amount of income earned by the payee. It does not include
                amounts shown separately as Total allowances, Lump sum payments,
                CDEP payments or Other income. The amount must be reported in
                whole dollars.
Clarification   - the amount of income earned by the payee including non-
                superannuation annuities. It does not include amounts shown
                separately as Total allowances, Lump sum payments, CDEP
                payments or Other income. The amount must be reported in whole
                dollars.


Field           7.77 Tax free component
definition
V8.0            - amount of the payment which is non-assessable and non-exempt
                income, i.e. is tax free.

                For employment termination payments, the Tax free component
                consists of any pre July 1983 segment plus any invalidity segment of
                the payment.

                For death benefit employment termination payments, the Tax free
                component is not assessable income and is not exempt income.

                For superannuation lump sum payments, superannuation income
                stream or DASP, the Tax free component is made up of the
                contributions segment and the crystallised segment. The contributions
                segment consists of contributions made to a fund on or after 1 July
                2007 which have not been, and will not be, included in the assessable
                income of the fund. The crystallised segment may consist of any of the
                following amounts as at just before 1 July 2007:
                 The pre-July 1983 component
                 The concessional component
                 Undeducted contributions
                 Post-June 1994 invalidity component
                 CGT exempt component

Clarification   - amount of the payment which is non-assessable and non-exempt
                income, i.e. is tax free.

                   This field is optional.

                For employment termination payments, the Tax free component
                consists of any pre July 1983 segment plus any invalidity segment of
                the payment.

                For death benefit employment termination payments, the Tax free
                component is not assessable income and is not exempt income.

                For superannuation lump sum payments, superannuation income
                stream or DASP, the Tax free component is made up of the
                contributions segment and the crystallised segment. The contributions
                segment consists of contributions made to a fund on or after 1 July
                2007 which have not been, and will not be, included in the assessable
                income of the fund. The crystallised segment may consist of any of the
                following amounts as at just before 1 July 2007:
                 The pre-July 1983 component
                 The concessional component
                 Undeducted contributions
                 Post-June 1994 invalidity component
                 CGT exempt component

                Superannuation lump sum and superannuation income stream
                payments consisting wholly of the tax free component should not be
                included in PAYG withholding reporting. No tax should be withheld
                from these payments and no payment summary is required.


Field           7.78 Taxable component
definition
V8.0            - total amount of the employment termination payment less the Tax
                free component of the payment. It is assessable income. If an amount
                includes cents, the cents must be truncated (or disregarded).
                For example, $1,500.50 would be reported as 00001500.

                This field is numeric and must not contain decimal points, commas or
                $+- or other non-numeric characters. It is right justified, zero filled.
                This field must be greater than zero.

Clarification


                    For death benefit employment termination payments paid to a
                dependant of the deceased, only the amount over the ETP cap
                ($140,000 for 2007-08) should be included in the taxable component
                on the payment summary. If the taxable component of the death
                benefit paid to the dependant is less than the ETP cap a payment
                summary is not needed.




Field           7.81 Transitional termination payment
definition
V8.0            - a payment made before 1 July 2012 in accordance with transitional
                arrangements which apply where a person is entitled, as at 9 May
                2006, to a payment on termination of employment under a written
                contract, Australian or foreign law, legal instrument made under such
                a law or workplace agreement made under the Workplace Relations
                Act 1996. Valid values are Y or N.
Clarification   For further information about transitional termination payments refer to
                Employment termination payments – transitional arrangements
                (NAT 70644).

Field           7.82 Related to a prior payment for the same termination?
definition
V8.0            - an employment termination payment paid in a year of income where
                another employment termination payment has already been paid
                earlier in consequence of the same termination of employment. This is
                whether the earlier payment was made in the same income year, or a
                *earlier year of income (*except for the 2007/2008 year). Note. In
                2007/2008 there is no requirement to answer Y if the only prior
                payment was made in an earlier year.
                Valid values are Y or N.

Clarification   7.82 Related to a prior payment for the same termination? Is this
                payment part of a payment made in an earlier income year for the
                same termination?
                - an employment termination payment paid in a year of income where
                another employment termination payment has already been paid in an
                earlier income year in consequence of the same termination of
                employment. Note. In 2007/2008 there is no requirement to answer Y
                if the only prior payment was made in an earlier year.
                Valid values are Y or N.


Field           7.85 Taxable component – taxed element
definition
V8.0            The taxable component is the total amount of the superannuation
                income stream payment(s), superannuation lump sum payment or
                DASP less the Tax free component of the payment. It is generally
                assessable income. The taxable component of a superannuation
                income stream, superannuation lump sum benefit or DASP may
                consist of a taxed element, an untaxed element or both. The taxed
                element is the amount of the taxable component of the
                superannuation income stream, superannuation lump sum payment or
                DASP that represents the return of amounts that have been subject to
                tax in the fund (for example, taxable contributions and fund earnings).

                If an amount includes cents, the cents must be truncated (or
                disregarded).
                For example, $1,500.50 would be reported as 00001500.

                This field is numeric and must not contain decimal points, commas or
                $+- or other non-numeric characters. It is right justified, zero filled.

Clarification   For further information, refer to the electronic publications Lump sum
                benefits from a taxed super fund and income streams from a taxed
                super fund. These are available on our website www.ato.gov.au.
                    For superannuation lump sums and superannuation income
                streams do not show taxed element amounts paid to persons on or
                after their 60th birthday unless a lump sum payment is made to a non-
                dependant due to death.




Field           7.86 Taxable component – untaxed element
definition
V8.0            The taxable component is the total amount of the superannuation
                income stream payment(s), superannuation lump sum payment or
                DASP less the Tax free component of the payment. It is generally
                assessable income. The taxable component of a superannuation
                income stream, superannuation lump sum benefit or DASP may
                consist of a taxed element, an untaxed element or both. The untaxed
                element is the amount of the taxable component of the
                superannuation income stream, superannuation lump sum payment or
                DASP that represents amounts (other than the Tax free component)
                that have not been subject to tax in a fund. This usually occurs
                because the superannuation income stream, superannuation lump
                sum payment or DASP is sourced at least in part from a scheme that
                is not subject to tax.

                If an amount includes cents, the cents must be truncated (or
                disregarded).
                For example, $1,500.50 would be reported as 00001500.

                This field is numeric and must not contain decimal points, commas or
                $+- or other non-numeric characters. It is right justified, zero filled.

Clarification   For further information, refer to the electronic publications Lump sum
                benefits from an untaxed super fund and income streams from an
                untaxed superfund. These are available on our website
                www.ato.gov.au.

Field           7.87 Type of death benefit
definition
V8.0            For employment termination payments paid to a dependant, the tax
                free component and amounts up to the ETP cap are tax free. Amounts
                above the ETP cap are taxed at the top marginal rate plus Medicare
                levy. A payment summary is required if the employment termination
                payment is greater than the ETP cap. It would show both the tax free
                and taxable component.
Clarification   For employment termination payments paid to a dependant, the tax
                free component and amounts up to the ETP cap are tax free. Amounts
                above the ETP cap are taxed at the top marginal rate plus Medicare
                levy. A payment summary is required if the employment termination
                payment is greater than the ETP cap. It would show both the tax free
                and taxable component for the amount above the ETP cap.
Form            7.88 Tax offset
definition
V8.0            - an amount that reduces the amount of tax payable. It represents
                either 10% of the element untaxed in the fund of the taxable
                component or 15% of the element taxed in the fund of the taxable
                component as follows:
                 10% of the element untaxed in the fund where a person aged 60
                    and over receives a superannuation income stream.
                 15% of the element taxed in the fund where a person aged less
                    than 60 years, who has reached preservation age, receives a
                    superannuation income stream.
                 15% of the element taxed in the fund where a person aged less
                    than preservation age receives a disability superannuation income
                    stream.
                 15% of the element taxed in the fund where the person is in
                    receipt of a superannuation income stream because of the death
                    of another person of whom the person is a dependant and where
                    the person is under 60 years of age when they receive the benefit
                    and the deceased died before aged 60.
                 10% of the element untaxed in the fund where the person is in
                    receipt of a superannuation income stream because of the death
                    of another person of whom the person is a dependant and where
                    the person is aged 60 or more when they receive the benefit or the
                    deceased died aged 60 or more.

Clarification   - an amount that reduces the amount of tax payable. It represents
                either 10% of the element untaxed in the fund of the taxable
                component or 15% of the element taxed in the fund of the taxable
                component or both. as follows:
                 10% of the element untaxed in the fund where a person aged 60
                    and over receives a superannuation income stream.
                 15% of the element taxed in the fund where a person aged less
                    than 60 years, who has reached preservation age, receives a
                    superannuation income stream.
                 15% of the element taxed in the fund where a person aged less
                    than preservation age receives a disability superannuation income
                    stream.
                 15% of the element taxed in the fund where the person is in
                    receipt of a superannuation income stream because of the death
                    of another person of whom the person is a dependant and where
                    the person is under 60 years of age when they receive the benefit
                    and the deceased died before aged 60.
                 10% of the element untaxed in the fund where the person is in
                    receipt of a superannuation income stream because of the death
                    of another person of whom the person is a dependant and where
                    the person is aged 60 or more when they receive the benefit or the
                    deceased died aged 60 or more.

                For information on how to calculate the tax offset refer to Schedule 34
                Tax Table for superannuation income streams (NAT 70982) or to the
                electronic publications Income streams from a taxed super fund and
Income streams from an untaxed super fund. These are available
on our website www.ato.gov.au.