The Federal Government announced that from 1 January 2017, Working Holiday Makers will be taxed at 15 percent on earnings up to $45,000. After $45,000 gross income has been reached, ordinary marginal tax rates will apply, that is, foreign resident tax rates for employees who are not Australian residents for tax purposes.
Please review the ATO's website to make sure that these guidelines relate to your employee before setting it up in MicrOpay:
If your Employer is Registered for WHM:
Go to Payroll, Maintenance, General, Payroll Companies.
Select the Payroll Company and Edit.
Tick Registered Employer for WHM.
Click OK to Save.
To add an employee as WHM:
Go to Payroll, Maintenance, Employees, Employees.
Edit the employee and select Tax Details.
Click TFN Declaration at the top of the screen.
For Question 8. Tax Status select A working holiday maker and complete the rest of the required details.
Select OK to save.
The fields below in Tax Details will default to:
Tax Status - A working holiday maker
Tax Scale Code - WHM (Working Holiday Maker), if the employer is registered, or 03 (Non-Resident) if they're not registered.
Income Type - WHM (Working Holiday Maker)
Tax Treatment - Tax Treatment is a read-only field that is populated based on selections made in Tax Details and, if applicable, the TFN Declaration.
Country in the ATO Reporting Information (STP) box is now active and mandatory when the Income Type is IAA or WHM. Select the employee's home country from the dropdown list.
Click OK to save.