Do I need to disclose my Medicare Levy information to my employer?

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 · Accepted Answer

PayrollDeanne · Answer

Wow, , I think your employer has misunderstood their employment obligations!!!! STP2 does require employers to report all the factors they used to calculate your withholding, as per the excellent ATO STP2 Employer Guidance (https://www.ato.gov.au/Business/Single-Touch-Payroll/In-detail/Single-Touch-Payroll-Phase-2-employer-reporting-guidelines/?page=3#Tax_treatment). But that's only with the information they receive from you. As you can see from the table, which tax scale you're on and the option you selected on the TFN/ Withholding declaration is a must. That includes if you never provided those declarations. However, there are other factors that may vary the withholding about your personal circumstances, like if you have a study loan (you advise your employer via the TFN/Withholding decs) or if you nominate to vary your Medicare Levy due to specific personal circumstances. That last one is completely voluntary and applies to a limited cohort of workers. It's not at all like the TFN/ Withholding declarations! Perhaps an ATO user on this community can follow this up with your employer? Deanne

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