About Working Holiday Maker Employees (Australia)

(Australia) If you have employees that were hired under the Working Holiday Maker program, you must set them up the same as you would a regular employee.

This includes filing status, direct deposits, deductions and liabilities, and so forth. The only difference in setting up these employees is the PAYG Income Type you specify for them in the PR Employees form (Info tab).

The PAYG Income Type ensures proper classification for PAYG withholding and reporting purposes. When you first set up an employee, the system defaults the PAYG Income Type to S - Salary and wages. For working holiday makers, you will need to set the income type to H - Working holiday maker. In addition, you will need to specify the employee's home country in the Income Stream: Country Code field. This ensures the system uses the proper tax rates and income limits for the employee and that the employee's reporting periods, PAYG payment summaries, and STP Phase 2 submissions correctly reflect the income type and country code.

If you later offer permanent employment to a working holiday maker, you will need to change the PAYG Income Type back to S - Salary and wages. For more information, see Change an Employee's PAYG Income Type: Australia.