When employees have child support deductions, Tanda sends a single combined payment to Services Australia via your ABA file. For that payment to be attributed to the right child support cases, Services Australia requires your organisation's employer payment reference number, a 16-digit identifier, on the combined ABA payment line.
Before relying on your ABA file to pay child support, you must elect to report child support through Single Touch Payroll (STP) with Services Australia. Contact Services Australia to confirm this is set up before proceeding.
What this help guide covers:
Find Your Employer Payment Reference Number
Your employer payment reference number is a 16-digit number assigned by Services Australia. You will need this number to configure child support through Tanda. It identifies your organisation as the child support payer and appears on the combined payment sent to Services Australia in the ABA file each pay run.
You can find this number in:
Services Australia correspondence: Check the letter or schedule you received when child support deductions were first established for your organisation. The reference number is typically printed alongside your payment instructions.
Services Australia directly: Contact the employer line if you can't locate your documentation.
Learn more about paying Child Support on the Services Australia website.
Configure Child Support in Tanda
There are three components to configuring child support in Tanda:
Setting the Payment Reference Number
Go to Payroll > Payroll Settings > Company Setup and enter your 16-digit number in the Child Support Payment Reference Number field for each applicable company file, then save.
Once saved, this reference is used as the lodgement reference on the combined child support line in every ABA file you generate.
Creating Child Support Deductions
Create your Deduction Type for child support under Payroll > Payroll Settings > Deduction Types > + New.
Enter a name for the template and choose an STP category. There are two options for child support:
Child Support Garnishee (deduction type G)
Child Support Deduction (deduction type D)
Choose the correct category for your case. With one of these STP categories chosen, the bank account will automatically be set to:
Account name: Services Australia
BSB: 092-009
Account Number: 116755
Learn more about configuring deductions in this help article.
Applying Child Support Deductions to Employee Profiles
Once the Payment Reference Number and the Deduction Type have been configured, you can start applying this to employee profiles.
Open an employee's profile under Workforce > Staff and navigate to the Payroll > Payroll Details tab. Under the Deductions header, click + Add and choose the child support Deduction Type from above.
Set the amount that should be deducted and click Create to save changes.
Note: Some existing child support deduction templates on employee profiles will have a unique Payment Reference number previously set. This number is no longer used in ABA files and is kept on the template for record-keeping purposes. The Employer Payment Reference Number should be set in each company file instead.
Pay Run Warnings
When you finalise a pay run that includes child support deductions, Tanda checks whether your employer payment reference number is set. If it isn't, you'll see a warning before posting:
To resolve it, add your 16-digit employer payment reference number in Payroll > Payroll Settings > Company Setup before posting.
FAQs
I already have child support deduction templates set up. Do I need to change them?
I already have child support deduction templates set up. Do I need to change them?
No changes are needed to your templates. If you have a per-employee child support reference entered, it stays for your records but does not affect your ABA file. You will, however, need to make sure you've added the employer payment reference number in Payroll Settings.
Is this the same as my ATO Payment Reference Number?
Is this the same as my ATO Payment Reference Number?
No. These are two separate numbers for different payments. The ATO Payment Reference Number is for PAYG withholding payments to the ATO. The employer payment reference number is specifically for child support payments to Services Australia.
We have multiple employees with different child support cases. Do we need a separate reference per employee?
We have multiple employees with different child support cases. Do we need a separate reference per employee?
No. The employer payment reference is a single organisation-level number. Tanda combines all employee child support deductions into one ABA payment to Services Australia using that number. Services Australia then allocates the total across individual cases on their end.
Will the Protected Earnings Amount (PEA) Be Enforced on Recurring Deductions?
Will the Protected Earnings Amount (PEA) Be Enforced on Recurring Deductions?
Yes, the Protected Earnings Amount will be applied based on the STP category of the deduction to align with the regulatory requirements set by Services Australia. Here’s how it works:
Earnings Below PEA: If an employee’s gross earnings for the pay period are below the Protected Earnings Amount threshold, child support deductions will not apply. This safeguard ensures essential earnings are protected for employee welfare.
Earnings Above PEA: For earnings that exceed the threshold, deductions are applied automatically based on the configured amounts.