File an employee's tax declaration with the ATO

File or update an employee's tax declaration information in Xero, including lodging changes to a tax file number (TFN) declaration with the ATO.

Before you start

  • Confirm your employee has the correct Date of Birth, First Name, Surname and Contact Information set up in Payroll.
  • Ensure that your organisation’s Legal/Trading Name, Australian Business Number and Contact Details are correct under Organisation settings.

How it works

  • When you enter information in the Taxes tab, you can either save it just in Xero, or click File Now to automatically submit your updates to the ATO.
  • The validation system used in Xero Payroll for a TFN is the same as the ATO validation system.

Lodge or update a TFN declaration with the ATO

  1. In the Payroll menu, select Employees.
  2. Click the employee to open their details.
  3. Click the Taxes tab.
  4. Add Tax File Number (TFN) or TFN Exemption.

    Only enter the 8 or 9 digits in the TFN field. Avoid dashes, hyphens or spaces. Xero will add the hyphens automatically after you have added the number. If an error occurs when you're entering the employee’s TFN, ask your employee to verify their number with the ATO.

  5. Select Employment Basis and Residency Basis.
  6. (Optional) Select any tax category checkboxes that apply.
  7. Click Save Only to save any changes you have made, or click File Now to save and automatically submit your updates to the ATO.
Complete the Tax Declaration for your employee.