How to complete this form – payer
Section B: To be completed by the payer
The following information will help you comply with your pay as you go (PAYG) withholding obligations.
Is your employee entitled to work in Australia?
It is a criminal offence to knowingly or recklessly allow someone to work, or to refer someone for work, where that person is from overseas and is either in Australia illegally or is working in breach of their visa conditions.
People or companies convicted of these offences may face fines and/or imprisonment. To avoid penalties, ensure your prospective employee has a valid visa to work in Australia before you employ them.
If you withhold amounts from payments, or are likely to withhold amounts, the payee may give you this form with section A completed. A TFN declaration applies to payments made after the declaration is provided to you. The information provided on this form is used to determine the amount of tax to be withheld from payments based on the PAYG withholding tax tables we publish. If the payee gives you another declaration, it overrides any previous declarations.
Has your payee advised you that they have applied for a TFN, or enquired about their existing TFN?
Where the payee indicates at question 1 on this form that they have applied for an individual TFN, or enquired about their existing TFN, they have 28 days to give you their TFN. You must withhold tax for 28 days at the standard rate according to the PAYG withholding tax tables. After 28 days, if the payee has not given you their TFN, you must then withhold the top rate of tax from future payments, unless we tell you not to.
If your payee has not given you a completed form you must:
- notify us within 14 days of the start of the withholding obligation by completing as much of the payee section of the form as you can. Print ‘PAYER’ in the payee declaration and lodge the form
- withhold the top rate of tax from any payment to that payee.
Lodging the form
You need to lodge TFN declarations with us within 14 days after the form is either signed by the payee or completed by you (if not provided by the payee). You need to retain a copy of the form for your records.
You may lodge the information:
- online – lodge your TFN declaration reports using software that complies with our specifications. There is no need to complete section B of each form, as the payer information is supplied by your software
- by paper – complete section B and send the original to us within 14 days.
Provision of payee’s TFN to the payee’s super fund
If you make a super contribution for your payee, you need to give your payee's TFN to their super fund on the day of contribution, or if the payee has not yet quoted their TFN, within 14 days of receiving this form from your payee.
Storing and disposing of TFN declarations
The TFN guidelines issued under the Privacy Act 1988 require you to use secure methods when storing and disposing of TFN information. You may store a paper copy of the signed form or electronic files of scanned forms. Scanned forms must be clear and not altered in any way.
If a payee:
- submits a new TFN declaration you must retain a copy of the earlier form for the current and following financial year
- has not received payments from you for 12 months, you must retain a copy of the last completed form for the current and following financial year.
You may incur a penalty if you do not:
- lodge TFN declarations with us
- keep a copy of completed TFN declarations for your records
- provide the payee’s TFN to their super fund where the payee quoted their TFN to you.
Privacy of information
Taxation law authorises the ATO to collect information and to disclose it to other government agencies.
The information you provide in this declaration will allow your payer to work out how much to withhold from payments made to you. (NAT 3092)Last modified: 09 Jun 2016QC 16161