Summary

This tab page allows you to record the Medicare Levy Surcharge details from a Medicare Levy Variation Declaration form signed by an employee and set a date for which payroll will start applying the deduction from.

Even though your employee has provided you with a Medicare Levy Variation Declaration form, the ATO does not permit MLS to be deducted for the following tax scales:

• Horticulture and Shearers
• Working Holiday Makers
• Seasonal Worker Programme
• Foreign Residents
• No TFN
• ATO-Defined
• Voluntary Agreement
• Actors

Please check settings on the employee's Tax tab and employee's Contract record before added MLS details to confirm they are not one of the above types of employees.

Fields

• Declared on for auditing purposes must be the date from the Medicare Levy Variation form that the employee signed.
• Effective start date is expected to be date from which the deduction at this MLS rate will take effect. It will default to the Declared on date. It cannot be before the Declared on date. Ideally it should align with a period start date, but if it doesn’t it will use the pay period in which this date falls.
• Effective end date is expected to be left empty until the employee no longer needs MLS to be deducted.
• MLS rate for compliance/auditing purposes must be the rate that was ticked in the Medicare Levy Variation form that the employee signed.

IMPORTANT: If the employee provides you with a second or subsequent Medicare Levy Variation record with a different MLS rate, you must create new Employee Medicare Levy Variation record. DO NOT edit the existing record MLS rate because that has the potential to interfere with your historical data should you ever need to roll-back a pay or create a manual pay for a historical pay period.