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Vivian_Zhang028(Initiate)Initiate
2 Dec 2024

As per the government’s requirements, our company plans to transition from a Trust to an Entity structure, which will involve changes such as obtaining a new ABN.

Regarding payroll, I would like to inquire whether it is possible to transfer all employees and their associated entitlements—such as annual leave, sick leave, and other accrued benefits—directly to the new ABN. Since this transition involves PAYG withholding, superannuation, and other related matters, I would like to confirm if a full transfer of employee data can be done seamlessly.

Thank you for your guidance on this matter.

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292 views
1 replies

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Most helpful replyATO Certified Response

PayrollDeanne(Taxicorn)Taxicorn
ATO Certified Response4 Dec 2024

Hiya @Vivian_Zhang028 👋


That's a complex question for the ATO Community! Let me respond in this way:


  • Employee entitlements - that is a different regulator, not the ATO. The Fair Work Ombudsman covers employment pay and entitlements. Refer to their excellent guidance on the Transfer of Employee Entitlements.
  • Tax and Super matters - that's more complex. For example:
    • tax, super and reporting obligations relate to which entity paid the employees and they aren't transferable, as per the ATO guidance.
    • some tax and super obligations have YTD considerations (marginal tax) or QTD considerations (SG and Maximum Contribution Base), so it will depend when you transfer the business but you cannot transfer those YTD/QTD amounts across entities.
  • Seamless payroll transfer - that will be up to the specific payroll product you use. It may be easy or a bit more complicated.
  • Record keeping - both the Fair Work Ombudsman (7 years) and the ATO (5 years) have record keeping obligations that you must consider.

There are a LOT of details to address here and you need to consider many obligations.


Deanne

All replies

Most helpful replyATO Certified Response

PayrollDeanne(Taxicorn)Taxicorn
ATO Certified Response4 Dec 2024

Hiya @Vivian_Zhang028 👋


That's a complex question for the ATO Community! Let me respond in this way:


  • Employee entitlements - that is a different regulator, not the ATO. The Fair Work Ombudsman covers employment pay and entitlements. Refer to their excellent guidance on the Transfer of Employee Entitlements.
  • Tax and Super matters - that's more complex. For example:
    • tax, super and reporting obligations relate to which entity paid the employees and they aren't transferable, as per the ATO guidance.
    • some tax and super obligations have YTD considerations (marginal tax) or QTD considerations (SG and Maximum Contribution Base), so it will depend when you transfer the business but you cannot transfer those YTD/QTD amounts across entities.
  • Seamless payroll transfer - that will be up to the specific payroll product you use. It may be easy or a bit more complicated.
  • Record keeping - both the Fair Work Ombudsman (7 years) and the ATO (5 years) have record keeping obligations that you must consider.

There are a LOT of details to address here and you need to consider many obligations.


Deanne

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Inquiry Regarding Transitioning Employees and Entitlements to a New ABN | ATO Community