Field Definitions: PR Limits and Rates Form

The following is a list of field descriptions for the PR Limits and Rates form. Many of the descriptions include links to other topics that provide additional information about or related to the topic.

Effective Date

The Effective Date field on the PR Limits and Rates form.

We recommend that you do not change this information unless the ATO makes changes to rates mid-year and you have not yet installed a new release of Vista.

Enter the date for the limits and rates to become effective.

ETP Payment Tax Rates and Limits

The ETP Payment Tax Rates and Limits fields on the PR Limits and Rates form, Info tab.

The fields in the ETP Payment Tax Rates and Limits section of PR Limits and Rates are used for processing ETP payments.

For more information about ETP payments, refer to the ATO website.

We recommend that you do not change this information unless the ATO makes changes to rates mid-year and you have not yet installed a new release of Vista.

Note: If you change the value of a field, the value must be equal to or greater than 0.00.
  • ETP Cap - This is the current ETP cap.
  • Whole Income Cap - This is the current whole of income cap.
  • Redundancy Tax Free Basis - This amount is not taxed when an ETP redundancy payment is made; anything over this limit is taxed unless there is a tax free component for years of service (the basis of which is determined by the amount in the Redundancy Tax Free Years of Service Basis field).
  • Redundancy Tax Free Years of Service Basis - This amount is not taxed for each full year that an employee worked for you. This amount is in addition to the amount in the Redundancy Tax Free Basis field. For example if the amount in this field is $4,404.00 and the employee has worked for five full years, $22,020.00 ($4,404.00 x 5) will not be taxed when the ETP payment is made.
  • Under Preservation Age Rate - The withholding rate for individuals under the preservation age.
  • Over Preservation Age Rate - The withholding rate for individuals over the preservation age.
  • Excess of Cap Rate - The taxation rate for all ages and all amounts that exceed the relevant cap amount (the amount represented in either the ETP Cap field or the Whole Income Cap field).

About the PR Limits and Rates Form (Australia)

Types of Automatic Payments for Terminated Employees

FBT Rates and Amounts

The FBT Rates and Amounts fields on the PR Limits and Rates form, Info tab.

Required.

The FBT Rates and Amounts fields on the PR Limits and Rates form are used for processing Fringe Benefit Tax payments. We recommend that you do not change this information unless the ATO makes changes to rates mid-year and you have not yet installed a new release of Vista.

  • Tax Rate - The FBT tax rate. For more information, see the Fringe benefits tax – rates and thresholds section on the ATO website.
  • Gross-up Rate Type 1 - The higher gross-up rate. This rate is used when a goods and services tax (GST) credit (due to a benefit provision) applies. For additional information, see the Type 1: higher gross-up rate section on the ATO website.
  • Gross-up Rate Type 2 - The lower gross-up rate. This rate is used when a goods and services tax (GST) credit (due to a benefit provision) does not apply. For additional information, see the Type 2: lower gross-up rate section on the ATO website.
  • Reporting Threshold Amount -The threshold amount for reporting on payment summaries. For additional information, see the Reportable fringe benefits section on the ATO website.

About the PR Limits and Rates Form (Australia)

Types of Automatic Payments for Terminated Employees

Leave

The Leave fields on the PR Limits and Rates form, Info tab.

The following fields in the PR Limits and Rates form are used for processing unused leave payments upon employment termination. For more information, refer to the ATO website.

We recommend that you do not change this information unless the ATO makes changes to rates mid-year and you have not yet installed a new release of Vista.

Note: If you change the value of a field, the value must be equal to or greater than 0.00.
  • Annual Leave Loading Rate - The value in this field represents the percentage an employer pays to compensate employees for work opportunity lost while the employee is on annual leave. The value defaults from the most recent effective date.
  • Leave Flat Rate Limit - If the amount you are paying for unused long service/annual leave for accrual dates after 17 August 1993 is under the amount specified in this field, the system will withhold the lesser of: the standard calculated amount or the rate specified in the Leave Flat Rate field.
  • Leave Flat Rate - The percentage amount withheld from a payment of unused long service/annual leave for accrual dates after 17 August 1993 that is under the amount specified in the Leave Flat Rate Limit field. The system will not use this rate if the standard calculated amount is lesser.

About the PR Limits and Rates Form (Australia)

Types of Automatic Payments for Terminated Employees