Viewing a list of employees without a TFN
The Awaiting TFN Report allows you to view a list of employees who have not yet provided their Tax File Number (TFN) details and, importantly, how long it has been since their Tax File Number Declaration Form submission.
This information is useful as you must withhold 47% of any payment made to a resident employee and 45% from a foreign resident employee withhold if any of the following apply:
- They have not quoted a TFN
- They have not applied for an exemption from quoting their TFN
- They have not advised you that they have applied for a TFN or have enquired with the ATO about obtaining one.
- They have selected the Under 18 TFN exemption, but have exceeded the $350 earning threshold for the week.
Please note: The TFN exemption for those Under 18 will only apply to payments under $350 per week. If the employee exceeds that amount in the week they are taxed at the highest Tax rate as per the ATO guidelines. If the employee wants to be taxed at the marginal rate instead of the highest rate when earning over the $350 threshold, they will need to provide a tax file number.
It is a good idea to run the Awaiting Tax File Number report regularly and communicate with employees about outstanding TFNs.
Please note: When an employee adds a TFN to their profile, any change in tax will not be reflected in the current pay period, this change instead applies from their next pay period onwards.
Need to understand more?: According to the Australian Tax Office (ATO), there is a time limit of 28 days to provide a TFN to an employer (current as of 1 Oct 2022), otherwise higher withholding tax would apply. Read more about your obligations as an employer with this handy ATO guide.
In this article we will cover:
- Running the Awaiting TFN report
- Filtering Approved people without a TFN and sending them an email reminder in Bulk.
You will need to have access to Financial reports to view the Awaiting Tax File Number TFN Report.
To run the report:
- In the quick menu select Reports > Financial.
- Scroll down to the Tax subsection and select Awaiting TFN.
- The report will show all the employees who haven't provided their TFN and the number of days since their Tax File Declaration was submitted.
- Select the Show X entries in the top left and select a higher number to view more employees on the screen at one time.
For any employees in red (who have gone past 28 days), their income tax will be charged at the higher withholding tax rates as per the ATO rules.Please note: If you need to search for a specific employee, you can do so using the search box on the right-hand side.
Once you have run the above report, you may want to send employees a reminder to provide their TFN. You can do this from the People menus using the Show filter and Bulk Actions.
To remind employees without a Tax File number:
- In the quick menu, navigate to People > Approved People.
- Select Show Filter and select TFN Status > Awaiting TFN, to filter by your specific groups of employees. You can also filter by Exempt from TFN or Has TFN.
- Scroll down and Apply Filter.
- You will now have your filtered list. Continue to select Bulk Actions > Send Email to All Filtered.
For more specific information on populating a Bulk Email, see our handy help article.