Additional Withholding for Medicare Levy Surcharge

(Australia) The Additional Withholding for Medicare Levy Surcharge check box on the PR Employees form, Add'l Info tab.

For use with STP Phase 2 only.

Select this check box if the employee requested additional withholding for the Medicare Levy Surcharge. When selected, the Withholding Tier Level drop-down is enabled to indicate the withholding rate for the employee.

Note: This setting is used during STP Phase 2 data generation as part of the computation to determine the employee's Tax Treatment Code, and has no bearing on the actual calculation of PAYG withholding amounts during payroll processing. Additional withholding, if needed, should be configured for the employee as a rate-based add-on for the PAYG Tax deduction code in PR Employee Dedns/Liabs.

Leave this check box unselected if:

  • the employee is fully or partially exempt from the Medicare Levy Surcharge; that is, the employee is assigned a Scale of 5, 95, 6, or 96 on the Filing Status tab in PR Employees.
  • the employee did not request additional withholding for the Medicare Levy Surcharge.
  • the employee claimed a Medicare Levy Reduction (the Claim for Medicare Levy Reduction check box is selected).