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Single Touch PayrollDamon Guest
What is Single Touch Payroll
• Single Touch Payroll is a government initiative to streamline business
reporting obligations for the ATO
• Reporting of payments such as salaries and wages, pay as you go
(PAYG) withholding and super liability.
It simply means that every time you run your payroll, you will have to send
an amount of data equivalent to your payment summaries to the ATO
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Important Dates
Single Touch Payroll reporting will be mandatory for employers with 20 or more employees.
July 1 2018
Employers with 19 or less employees will be required to report through Single Touch Payroll, subject to legislation being passed.
July 1 2019
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ATO will
continue
to
develop
and
improve
the STP
Process
Who did you Count?
April 1st employees were counted and they included:
• full-time
• part-time
• Casuals who are on your payroll on 1 April and worked any time during March
• employees based overseas
• any employee absent or on leave (paid or unpaid)
• seasonal employees (staff who are engaged short term to meet a regular peak workload, for example, harvest workers)
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Employees to Exclude
any employees who ceased work before 1 April
casual employees who did not work in March
independent contractors
staff provided by a third-party labour hire organisation
company directors
office holders
religious practitioners
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Payroll Events
• Payroll Event (PAYEVNT) services provide business or their registered intermediary the ability to report payroll information to the ATO including out of cycle payruns.
• The ATO uses AUSKEY for authentication and a BMS-ID to enable them to receive and reconcile data. YTD totals will be stored per ABN, Branch ID and BMS ID.
• A Branch ID is provided where Organisations sub-divide activities to deal with tax obligations, otherwise set to 001.
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Payroll Event Data 9
Payroll Event Fields ATO LabelsRegistered Agent Declarer Identifier Payer Declarer Identifier Report Financial Year Start Date ETP Code
Registered Agent Declaration Date Payer Declaration Date Report Financial Year End Date Payee ETP Tax Free Component
Registered Agent Declaration Indicator Payer Declaration Acceptance Indicator Final Event Indicator Payee ETP Taxable Component
Registered Agent ABN Payer Total PAYGW Amount Period start date Payee Total Voluntary Agreement PAYGW
Registered Agent Number Payer Total Gross Payments Period end date Amount
Registered Agent Email Address Payee Allowance Amount Reportable Employer Super Contributions Payee Gross Payments Voluntary Agreement
Registered Agent Business Hours Phone Number Allowance Type OTE Amount Payee Lump Sum Payment B
Registered Agent Contact Name Other Allowance Type Super Guarantee Amount Payee Lump Sum Payment D
Payer E-mail Address Deduction Type Payee Total Labour Hire PAYGW Amount Payee Lump Sum Payment E
Payer Business Hours Phone Number Payee Deduction Amount Payee Gross Payments Labour Hire Payee Lump Sum Payment A
Payer Australian Business Number Payee Payroll ID Payee RFB Exempt Amount Payee Lump Sum Payment A Type
Payer Withholding Payer Number Payee TFN Payee Total FEI PAYGW Amount Payee Gross Payments Working Holiday Maker
Payer Branch Code Previous Payee Payroll ID Payee Foreign Employment Income Foreign Tax Paid Payee Total Working Holiday maker PAYGW Amt
Payer Organisation Name Payee Family Name Payee Gross Payments Foreign Employment Payee Zone Rebate Claimed
Payer Contact Name Payee First Name Payee Total INB PAYGW Amount Payee Overseas Forces Rebate Claimed
BMS Identifier Payee Other Name Payee Gross Payments Individual Payee Special Rebate Claimed
Payer Suburb/Town Payee Date of Birth Payee Exempt Foreign Income Amount Payee Tax Offset Variation Amount
Payer State/Territory Payee Address Line 1 Payee CDEP Payment Amount Payee Higher Education Loan Program (HELP)
Payer Postcode Payee Address Line 2 Payee FEI JPDA Foreign Tax Paid Indicator
Payer Country Code Payee Suburb/Town Payee Total FEI JPDA PAYGW Amount Payee Trade Support Loan Indicator
Payer Address Line 1 Payee State/Territory Payee Gross Payments JPDA Foreign Payee Student Loan Indicator
Payer Address Line 2 Payee Post Code Employment Payee Employment Type Code
Full File Replacement Indicator Payee Country Code Payee Total Other Specified Payments PAYGW Payee Residency Status
Replaced payroll transaction ID Contractor ABN Amount Payee Tax Free Threshold Claimed
Pay/Update Date Payee Commencement Date Payee Gross Payments Other Specified Payments Payee Senior Australian Tax Offset Claimed
Submission ID Payee Cessation Date Payee RFB Taxable Amount Payee Declarer Identifier
Payee Record Count Payee E-mail Address Payee Total ETP PAYGW Amount Payee Declaration Date
Run Date/Time Stamp Payee Phone Number Payee ETP Payment Date Payee Declaration Acceptance Indicator
Superannuation
• Single Touch Payroll requires an employer to report to the ATO:
-Superannuation Guarantee liability for an employee and/or Ordinary Time Earnings (OTE) at payevent
The ATO will receive superannuation payment information from the super funds
This information will be used to support improved engagement by the ATO with employers, and to support improved transparency of Superannuation Guarantee information for members
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Exemptions
The ATO may grant you an exemption from Single Touch Payroll reporting if:
• you are located in a rural area with no reliable internet connection
If you are granted an exemption you will not need to start Single Touch Payroll for the year(s) you are covered by the exemption.
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Deferrals 12
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Deferrals – cont’d 13
The latest date you can apply for a DSP deferral is Thursday 31 May
Penalties
During the first 12 months you report through Single Touch Payroll you will be exempt from an administrative penalty for failing to report on time.
The caveat being, unless the ATO has first provided written notice advising that a failure to report on time in the future may attract a penalty.
https://www.smartcompany.com.au/finance/tax/small-businesses-single-touch-payroll/
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STP Submission – how it works 15
Authentication
Authorisations and declarations
• There are different requirements in regards to the making of the declaration and subsequent submission to the ATO within the pay event, depending on whether it has been created by the employer (or an authorised employee), or by a Registered Agent.
• The person responsible will require an AUSKey.
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WageEasy Example 1 17
Prior to starting review Allowance/Deduction setup 18
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Click here for more detail
on which allowances need
to be reported on a
Payment Summary across
the following 6 categories:
• Meal
• Laundry
• Travel
• Car
• Transport
• Employment (aka other)
The next screen includes
Award - Misc Loadings
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STP reportable
deductions fall under
one of 2 categories
• Workplace Giving
• Fees (Union)
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To modify Allowances, go to Setup, Allowances and select, go to
the ATO Payment Summary Tab
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Once STP Setup is complete, selecting the STP icon changes automatically to Single Touch Payroll Reporting (PayEvent reporting)
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Attache - Example Setup & Submission 2
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Example 3 – Spreadsheet 29
If you are looking for an alternate solution we are able to submit your payroll manually via
spreadsheet using a third party.
Payevt processed by the ATO
Errors – if an employee errors, no need to reprocess this pay, just fix the error and wait until next pay as their data will then be correct and up-to-date
The ATO has an SLA that currently states, once a receipt has been received, the payevt lodgement will be processed within 72 hours
In circumstances of disaster recovery the ATO is working to ensure all data is captured and retained to ensure there is no requirement for re-submission.
There is also no time limit on uploading data in cases where there is a slow internet connection or the file is very large.
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Business Portal STP Reporting 31
Employer STP Reporting Screen 32
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STP Reconciliation 33
• Your source of truth in all instances is your payroll system
• Do not reconcile your payroll data to your mygov data
• Mygov will be updated next pay with the latest information
• If mygov is not correct, change the configuration in your payroll system to export the data correctly.
Employee Experience 34
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Checklist 35
The Practical
• We all know Group Certificates / Payment Summaries are Annual
• STP is essentially the same info but every pay
• Each new STP replaces the last one
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Tax Returns 37
We use our Group Certificate / Payment Summaries• Take to your Accountant
• Lodge Tax return Online
• Prepare Manual Tax Return and send to ATO
With STP there will be NO Group certificates / Payment Summaries
All the data is available on MYGov
To do your Tax return• Go to your Tax Accountant who can get all the data from their portal
• Go to MyGov and Lodge Tax return online
• Request information from ATO and do a manual Tax return
The ATO
BAS Returns – these will be prefilled based on STP returns
Superannuation Coy’s will update ATO on when they are paid• No more late payments of Super
• More penalties
Cash Flow• Original law had companies paying PAYG as same time as lodging STP
• No doubt this will continue to be a goal for the ATO
Deferrals – it will not be like Super changes - more like GST will happen eg help and support for 12 months
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The Challenge
It is over to your payroll provider to do the work
Your Part• When you first register
• Getting all of the cloud connectors / registration sorted
• Auskey etc
• You can start before 1st July
• Getting names and info correct and thru the ATO data checks
• Superannuation updates has cleaned up payroll data a lot
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Payroll Systems
Most Vendors are in the process of releasing STP enabled software
Some are saying there will be an additional release prior to July 1
How much is it going to cost?• Changeover
• Ongoing
All Payroll Systems will require an update or upgrade to gain access to STP Functionality
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Payroll Systems Update
Xero Progressive compliance from 1 July, Xero subscribers will have a deferral of as much as six months – Deferral number 49410109
MYOB Users are encouraged to move to Account Right (eg Premier and v19 Myob Sites are not going to be updated)
• ATO Deferral - Clients who are unable to move to an STP enabled version of AccountRight, because they are currently using multi-currency, negative inventory, multi location inventory, M-Powered Payment or ODBC and those using AccountEdge, have been granted an STP reporting deferral until 31 May 2019.
Quickbooks : Reckon software with payroll functionality including Reckon One, Accounts Hosted, Reckon Accounts 2018 and Payroll Premier 2018/2019 will be STP-enabled and ATO compliant by 1 July 2018. Note versions
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Payroll Systems Update Cont’d
• Attache – STP Version released and working- Will require an upgrade to BI 3.7.2 and an install of their Cloud Service
- We are installing NOW with aim to complete before end of May
• Definitiv – scheduled for a STP release late April - May.
• MYOB Exo / Advanced / Greentree – May 18 Testing and June 18 Release
• Sage Micropay and WageEasy – STP version released, not yet linked to ATO, another release expected in June in conjunction with Gateway credentials
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ABSIA Listed Products – Self Cert 43
Accentis Enterprise
Accentis Payroll
Accrivia
ADP® GlobalView®
ADP® Payforce® - deferral to April 2019
ADP® Payline® - deferral to April 2019
ADP® Streamline®
Advanced Payroll
Astute Payroll
Attaché Payroll
Aussiepay
CASPER Payroll
CloudPayroll
D-BIT Payroll and Labour Hire Solutions
DataPay
Definitiv
e-PayDay®
eCorporate
Employment Hero
EntireHR
ePayroll
FastTrack360 – deferral app in progress
FlarePay
foundU People Operations Platform
HR3 payroll – deferral in place
Inerva Software
Infinet Cloud Payroll for JCurve
Infinet Cloud Payroll for NetSuite
Infoware
Inzenius
KingPay Payroll System
MessageXchange Single Touch Payroll (STP) Gateway
Microkeeper
MULI
MYOB Exo Employer Services
MYOB Greentree
Ozedi Single Touch Payroll (STP)
Preceda
QuickSuper STP
Single Touch (Including Single Touch Payroll)
Single Touch Payroll
SuperChoice Services - Single Touch Payroll (STP) messaging provider
Sybiz Visipay
TechnologyOne Human Resource & Payroll
Tencia
Payroll Systems
What to do if your payroll system is not going to be compliant
1. Chase the provider to see if they have a deferral
2. Contact ATO to get your own deferral
3. Change Systems or outsource
4. Utilise a 3rd party STP addon eg spreadsheets upload from payroll reports
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Supporting Links
• STP – Authoristations and Declarations Scenarios
• ATO - Business Implementation Guide
• ATO – Deferral Request Form
• Allowance and Deduction setup
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CA Management Services Contact Details
• Address: 88 Burswood Road, Burswood WA 6100
• Phone: 08 9470 9922
• Email: [email protected]
• Website: www.caman.com.au
Questions?
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