Employees eligible for a Medicare levy exemption have previously had to wait till tax return time to recoup the extra tax paid throughout the financial year. This is no longer the case!
You can now apply the Medicare Levy exemption or reduction setting against an employee so that their PAYG is calculated accordingly in each pay run. To do this, go to the employee’s Tax File Declaration page where you will see the following:
Currently, every employee’s Medicare Levy Exemption setting is defaulted to “None”. If an employee has provided you with a Medicare Entitlement Statement, you can change this to either “Half” or “Full”, depending on the type of exemption.
N.B. Any changes to an employee’s Medicare Levy Exemption setting will not affect the existing date signed and lodgement status of the employee’s tax file declaration as there is no correlation between the two; that is, you are not required to submit another declaration because of this change.
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