• How do I add an income tax withholding tax type?

    This demonstration shows you how to add an income tax withholding tax type for your client.

    Step 

    Action 

    Result 

    1.

    Enter the TFN or ABN of the client in ‘Your client’s TFN/ABN’ field.

    Choose ‘Client details’ from the drop down menu.

    Select the Search button.

    The Client details screen will be displayed.

    2.

    Choose the Registrations radio button to view the client’s registration details.

    Select the Next button.

    The Registration summary screen will be displayed.

    3.

    This screen displays a list of all the registrations for your client.

    Select the registration you want to view.

    Choose a registration to view the associated tax types.

    Select the Tax type summary button.

    The Tax type summary screen will be displayed.

    4.

    This screen displays all the tax types that are attached to the registration you selected.

    If there are no tax types for the account you have selected, no details will be displayed.

    You cannot add a tax type:

    • if an account other than ‘activity statement’ has been selected
    • for a deceased client
    • where an account is insolvent
    • for government clients, or
    • if an income tax withholding tax type already exists on any account.

    You can re-activate a tax type with a status of:

    • cancelled (CAN)
    • inactive (INA), or
    • irregular (IRR).
    • the Add tax type button.
     

    The Add tax type screen will be displayed.

    5.

    This screen enables you to select the tax types you would like to add to your client’s account.

    Select the check box for the IT withholding tax type.

    Select the Next button.

    The Add IT withholding details screen will be displayed.

    6.

    This screen displays the information required to add an income tax withholding tax type for your client.

    Enter the client’s income tax withholding details.

    Select the Yes or No radio button to indicate whether your client is required to register for income tax withholding.

    Enter the date that withholding will commence.

    Enter the estimated number of employees your client will pay.

    Enter the amount your client expects to withhold from payments to employees each year.

    Select the method that your client will use to provide your income tax withholding payment summary annual report.

    Select the Yes or No radio button to indicate if your client is paying royalties, dividends or interest to non-residents or to report investment income paid to Australian residents.

    If you select ‘Yes’, you must choose the type of investment report your client will lodge from the drop down list.

    Select the main industry that your client operates in from the drop down list.

    Enter a description of the new main activity that your client derives the majority of their business income from.

    Select the Next button.


     
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