To set up a new payment:
- From the menu, go to Payments and click on Dividends.
- Here you will see the list view of all created payments. On the top right click + Setup new payment.
- The setup of a payment is separated into the following sections:
- Payment setup:
- Select one or more securities to pay a dividend on. Or, check the Include all securities box to pay a dividend on all securities.
- Add a Payment description, e.g. “2018/19 interim dividend”.
- Select a Payment rounding option. See Additional Information below for details on rounding options.
- Cash components:
- Choose whether to enter cash payment instructions on a per security basis or as a total amount across all securities (for example $0.10 per security or $100,000 in total).
- Add dollar amounts for Franked cash and Unfranked cash.
- Check the Do not apply withholding tax to this payment if this is applicable for the dividend payment. If this box is not checked, the system will calculate and report on withholding tax for qualifying domestic and international investors (for example, where no tax identification number is provided).
- Tax components:
- Choose whether to enter tax instructions on a per security basis or as a total amount across all securities.
- Add dollar amounts for Franking credit and Conduit foreign income if any.
- Dividend Reinvestment Plan (DRP):
- Check the box to Allow DRP on this payment.
- Enter a DRP price per security. This value can be edited up until record date.
- Select a rounding option for units earned. See the “Did you know?” section below for further information on DRP unit rounding.
- Payment to investors without a bank account details:
- For investors that have not provided a valid bank account to receive payments, you can choose to either:
- Pay by cheque. To pay by cheque, tick the box next to Allow cheque payments for investors without a bank account on record. When this box is ticked, you can enter a cheque starting number. The system will record cheque numbers incrementally from this number. This feature is designed to assist with the reconciliation of cheque payments;
- Retain payment. When this alternative is selected no payment will be processed until after a bank account is provided by the investor; or
- Force DRP. Where Force DRP is selected, any investor without bank details will receive their full dividend in DRP even if they have No Participation or Partial participation choices elected for the DRP.
- Payment details:
- Enter a Record date. Securities must be owned on the record date for the investor to be eligible for payment. Any updates to an investors payment preferences are not taken into account from record date onwards. (For example: if John is supposed to be paid with a cheque and then adds his bank account details, he will still be paid via cheque. His new payment preferences would only be applied to the next scheduled payment)
- Enter a Payment date. This is the date on which you agree to transfer funds to your investors.
- Exclude investors from a payment by entering a name, HIN or SRN into the text box.
- Finally you can Attach a Notice of dividend payment document to send to investors. Note, whether or not any notice is attached, the system will generate and distribute a standard dividend/payment statement to each investor.
4. Click the Next button to review your payment and then schedule and notify investors. If you aren’t ready to notify you can leave the payment in draft mode and return to it later from the Payment list view.
Rounding can be applied to dividend payments and to units earned in a DRP. Both scenarios offer three rounding options:
- Dividend payment rounding. The payment for each investor will be rounded:
- To the nearest cent.
- Up to nearest cent.
- Down to nearest cent.
- DRP Units earned rounding. The DRP units earned for each investor will be rounded:
- To the nearest unit.
- Up to nearest unit.
- Down to nearest unit.