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New employer within econcomic group required to obtain TFN Declaration from an existing employee?

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Hi

 

For economic groups of related entities (group of ABN/Br), when an existing employee is transferred between ABN/Br employers within the group of companies, are we required to obtain a new TFN declaration from the employee? What would be our obligation if we don't receive it? The website guidance only offers generic guidance for obligations for "an employer", but without reference to related employers.

 

Thanks - D

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Hi @py_deanne,

 

Thanks for getting in touch!

 

A TFN declaration form is required to be completed when an employee starts a new relationship with a payer (such as an employer or payer with a different ABN). A TFN will cease to take effect when:

  • When a period of 12 months passes after an eligible PAYG payment is made by the payer to the recipient and there are no further eligible PAYG payment
  • After a TFN declaration is first made and no eligible PAYG payments are made by the payer to the recipient within a 12 month period
  • After an individual, who has given a declaration to their payer, directs the payer in writing to disregard the declaration
  • When an individual, who has given a declaration to their payer, permanently ceases to receive withholding payments from the payer
  • When the ATO has made a determination to declare that all or a specified class of TFN declarations cease to have effect
  • When an entity has a new ABN and a new TFN declaration is required.

If an employee has not provided a TFN declaration within 14 days of the start of the withholding obligation, the payer is required to notify the ATO by completing as much of the TFN declaration as possible with the information they have. If a TFN declaration is required and isn't lodged with us you may receive a failure to lodge penalty.

 

If you're still unsure and you'd like further clarification regarding your situation, you can phone us on 13 28 61 between 8am - 6pm, Monday to Friday to speak with an operator.

 

Thanks, JodieH.

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Hi @py_deanne,

 

Thanks for getting in touch!

 

A TFN declaration form is required to be completed when an employee starts a new relationship with a payer (such as an employer or payer with a different ABN). A TFN will cease to take effect when:

  • When a period of 12 months passes after an eligible PAYG payment is made by the payer to the recipient and there are no further eligible PAYG payment
  • After a TFN declaration is first made and no eligible PAYG payments are made by the payer to the recipient within a 12 month period
  • After an individual, who has given a declaration to their payer, directs the payer in writing to disregard the declaration
  • When an individual, who has given a declaration to their payer, permanently ceases to receive withholding payments from the payer
  • When the ATO has made a determination to declare that all or a specified class of TFN declarations cease to have effect
  • When an entity has a new ABN and a new TFN declaration is required.

If an employee has not provided a TFN declaration within 14 days of the start of the withholding obligation, the payer is required to notify the ATO by completing as much of the TFN declaration as possible with the information they have. If a TFN declaration is required and isn't lodged with us you may receive a failure to lodge penalty.

 

If you're still unsure and you'd like further clarification regarding your situation, you can phone us on 13 28 61 between 8am - 6pm, Monday to Friday to speak with an operator.

 

Thanks, JodieH.

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