FID & BAD Tax Allowances

FID and BAD Tax can be paid on behalf of employees who are paid by bank credit.

The following is based on the setup of Program Control Option A460:

• FID is a State Government Duty that is applied when deposits are made to a bank account. Rates will vary based on the State.
• The calculation of FID and BAD Tax Allowances may be based on the net allocated to an employee's main, default bank account, excluding deductions with a K split bank account Classification or the entire net value.

Establishing the FID Feature

If FID is paid on behalf of employees, there are two tasks that need to be performed:

1. Create an Allowance/Deduction record with a Classification of F for an FID Allowance; and
2. Specify the FID rate to pay on each relevant employee's Bank Details window.

The FID rate must be entered in cents in the $100 using one of the following:

• Online File Maintenance function, for all or groups of employees; or
• FID Rate Update function, for all or groups of employees.

The calculation of the FID allowance occurs during Close Payrun Process. Therefore, the allowance is applied in the next payrun, Preceda checks for employees who are paid by bank credit and if a rate has been specified in the Bank window. For each of these employees, the following is performed:

• Calculates the FID Allowance based on the employee's net pay ;
• Automatically generates an Allowance/Deduction record with a Classification of F;
• Placed the calculated FID Allowance in the generated Allowance/Deduction record; and
• The Allowance/Deduction record is picked up and processed in the next Payrun as a taxable allowance.

Establishing the BAD Tax Feature

BAD Tax is an Australian Federal Tax applied when withdrawals are made from a bank account. Rates will vary according to the value of the withdrawal.

If BAD tax is paid on behalf of employees, there are three main tasks you need to perform in the following order.

1. Establish an Allowance/Deduction record with a Classification of T for BAD Tax Allowance.
2. Establish a BAD Tax Table containing the rates that BAD tax is charged.
3. Change the BAD Tax Allowance flag on each relevant employee's Bank Details window to Y, by using one of the following functions:
   • Online File Maintenance function for individual employees; or
   • Setting the BAD Tax Allowance flag for all or groups of employees.

The calculation of the BAD Tax occurs during the Close Payrun process. Therefore, the allowance is applied in the next payrun. Preceda checks for employees who are paid by bank credit . For each of these employees, the following is preformed:

• Calculates the BAD Tax Allowance based on the employee's net pay;
• Automatically generates an Allowance/Deduction record with a Classification of T;
• Places the calculated BAD Tax Allowance in the generated Allowance/Deduction record; and
• The Allowance/Deduction record is picked up and processed in the next Payrun.

More than one BAD Tax Table can be created for any of the Organisation Levels but only one set of rates has been defined by the Australian Tax Office. Normally one table is established for each company within an organisation with each table being the same.

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