A customer emailed saying they found Reckon/Quickbooks had not accepted a Tax File Number (TFN) when setting up an employee card.
Answer –
- First, check there are 8 or 9 digits in the TFN
- Second, Reckon/Quickbooks in later versions, has an in-built tester to validate a TFN – at a post at Wikipedia, it is explained that the ATO – “uses an algorithm based on a simple modulo 11 arithmetic per many other digit checksum schemes. The weighting digits of the algorithm have been kept secret within the Australian Taxation Office since its creation, despite being communicated to more than 20,000 external entities in Australia, such as employers, investment bodies and software makers.[3]
Given the TFN `123456782`,
| 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 2 | ||||||||||
| x | x | x | x | x | x | x | x | x | ||||||||||
| 1 | 4 | 3 | 7 | 5 | 8 | 6 | 9 | 10 | ||||||||||
| = | = | = | = | = | = | = | = | = | ||||||||||
| 1 | + | 8 | + | 9 | + | 28 | + | 25 | + | 88 | + | 42 | + | 72 | + | 20 | = | 253 |
We calculate the sum 1 + 8 + 9 + 28 + 25 + 48 + 42 + 72 + 20 = 253. Since 253 = 11 * 23, it is a multiple of 11, hence the number is valid.”
Reckon doesn’t have TFNs but uses the number check to validate the TFN
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