Pay As You Earn (PAYE) Tax

11.2

Introduction

PAYE tax instalments are deducted from the pay of employees through the Concept Human Resource Management system. Legislation requires that instalments deducted are remitted to the Australian Tax Office by the twenty first of the month for pays during the first fourteen days of the month and by the seventh of the following month for pays in the period fifteenth to the last day of the month.
Penalties are incurred for late payments.

Principle

PAYE tax instalments will be paid to the Australian Tax Office by the seventh and twenty first of each month as required by the Income and Tax Assessment Act.

Procedure

11.2.1 On the sixth and twentieth of each month an account enquiry report relating to PAYE instalment deductions will be extracted from the Flinders Finance System.

11.2.2 The balance due for payment to the Australian Tax Office will be verified and entered into a ‘Tax Record Book’.

11.2.3 A cheque requisition will be prepared for the sum due and will be authorised by the Budget & Payroll Accountant

11.2.4 A cheque made payable to the Australian Tax Office will be drawn by Accounts Payable personnel.

11.2.5 A group tax remittance form will be completed and presented together with the cheque at the Flinders University Post Office where payment will be lodged.

11.2.6 A receipt will be obtained and retained with the ‘Tax Record Book’.