About Changes to the PAYG Income Type

(Australia) You can change the income type for an employee (in PR Employees), such as when moving the employee from working holiday maker to a regular salaried employee.

When you change the income type for an employee, you will "terminate" the employee to close the reporting period and then enter a rehire date to generate the new reporting period with the new income type.

Employee's Income Type is Changed:

Employee: Mary Clark

Hire Date: 01/01/17

PAYG Income Type: H - Working holiday maker

Country Code: ES (Spain)

Termination Date: 05/31/17

Cessation Reason: T-Transfer

New Income Type: S - Salary or wages

Country Code: Blank

Most Recent Hire Date: 06/01/17

The system uses the Termination Date as the Period End Date for the current reporting period. It then uses the Most Recent Hire Date as the Period Start Date for the newly generated reporting period. The new reporting period reflects the new income type.

Period Start Date

Period End Date

Final Pay Period Date

Income Type

Tax Year

Summary #

01/01/16

05/31/17

H - Working holiday maker

06/01/17

S - Salary or wages

When you run year-end summaries, the system will generate a summary for each reporting period, with each summary showing the income type associated with its corresponding reporting period. This ensures accurate PAYG reporting.