Voluntary Agreement


(from the ATO's Business Implementation Guide)



Voluntary Agreement - a written agreement between a Payer and a contractor Payee to bring work payments into the PAYGW system. The Payer does not have to withhold amounts for payments they make to contractors. However, the Payer and a contract worker (Payee) can enter into a voluntary agreement to withhold an amount of tax from each payment they make to the contractor


Contractor ABN must be reported for this Income Type



STP Creator - MYOB Users

In STP Creator, the above information is entered/selected on the Employment Details screen, accessible from the Payee Details screen. STP Creator will extract the details from the Employee's Card in MYOB and this can be used to pre-fill the selections. Also if changes are made to the Employee Card, you will be required to update the Employment Details screen to ensure it reflects the changes.



STP Creator - non MYOB Users

In STP Creator, the above information is entered/selected on the Employment Details screen, accessible from the Payee Details screen. .



Note: Only one Income Type can be set for each Payee ID. If an employee changes Income Types during a payroll year, create a new Payee ID for the new Income Type. For example if an employee started as a Working Holiday Maker and later became an Australian Resident, use one Payee ID for the Working Holiday Maker Income Type and a different Payee ID for the Salary and Wages Income Type.