Presented by: Michael Karavas Angela Lehmann 4 May 2018

Transcription

1 Practical Guidance Presented by: Michael Karavas Single Touch Payroll Design Lead - Australian Taxation Office Angela Lehmann Single Touch Payroll Assistant Director Design - Australian Taxation Office 4 May 2018

2 Contents Linking as an STP agent STP pay day reporting Authorisations & Declarations Corrections Framework End of financial year Transitioning into STP How the ATO will display the data Employees Super reporting Activity Statements Myth Busting UNCLASSIFIED Australian Taxation Office 2

3 Linking to the STP role

4 Linking as an STP role Cannot lodge an approved form on behalf of an employer unless you are a registered agent New STP agent role if you are not an agent already linked to an existing client or account ATO has a tool to create link for you if you have multiple clients to link to Payroll services only do not create link to client via Portals at this stage Can only be one registered agent at client level, one registered agent at account level and one registered agent at STP role can all be different UNCLASSIFIED Australian Taxation Office 4

5 Linking as an STP agent UNCLASSIFIED Australian Taxation Office 5

6 STP pay day reporting

7 Pay Event on or before pay date UNCLASSIFIED Australian Taxation Office 7

8 Pay Event employee information is year-to-date UNCLASSIFIED Australian Taxation Office 8

9 Pay Event Out-of-cycle pay runs Can be reported as a pay event Can be reported in the next regular pay event UNCLASSIFIED Australian Taxation Office 9

10 Authorisations and Declarations

11 Authorisations and Declarations information in the document is true and correct. authorised to lodge UNCLASSIFIED Australian Taxation Office 11

12 Authorisations and Declarations Per submission Has to be in writing Appropriate delegation has to be in place (internal process) Standing authority Validation against Registered Agent Number UNCLASSIFIED Australian Taxation Office 12

13 Corrections Framework

14 Correcting a payroll event report Must report within 14 days of detection Report at next pay cycle Report as an update event Activity Statements Where amounts pre-filled at labels W1 and W2 in activity statements do not reflect payroll records for the relevant activity statement period employers will need to fix those amounts when they complete their activity statement. *pre-filled activity statements only need to be adjusted if the amount is over the materiality threshold (Thresholds TBC) Large withholders follow existing processes. UNCLASSIFIED Australian Taxation Office 14

15 Overpayment relating to a previous financial year What do if you do if discover an overpayment in a previous financial year in a later year; Submit an update event Advise us the amounts the employee should have received in the relevant financial year Do not adjust the amount of tax withheld You should provide an update event for each financial year an overpayment occurred in. If the overpayment relates to a payment you did not report through Single Touch Payroll you should provide the worker with an amended payment summary and an amended payment summary annual report to us. UNCLASSIFIED Australian Taxation Office 15

16 Full file replacement A full file replacement gives you the ability to replace the latest pay event file you sent to us in error, or contains significant corrupt data. A full file replacement May only be used to replace the latest pay event Must contain the submission identifier of the pay event to be replaced Cannot be submitted if any employee information has subsequently been changed in a payroll or update event Cannot replace an update event a new update event should be submitted You shouldn t use a full file replacement for corrections UNCLASSIFIED Australian Taxation Office 16

17 End of Financial Year

18 EOFY and finalising data How will EOFY be different? How and when do we add RESC and RFBA information? Un-finalising data Amending finalisation Due Date UNCLASSIFIED Australian Taxation Office 18

19 End of year finalisation Employers will be exempt from providing payment summaries where information has been reported though Single Touch Payroll. Finalisation Declaration Employers make a finalisation declaration by providing a finalisation indicator for an employee as part of their Single Touch Payroll reporting. Tax Ready The information will be displayed as 'tax ready for employees in ATO online services accessed through mygov. The information will be also be pre-filled in income tax returns. RESC and RFBA can be reported at any time up to the due date for finalisation Employers will need to provide a payment summary for any payments not reported and finalised through Single Touch Payroll by the due date. UNCLASSIFIED Australian Taxation Office 19

20 Finalisation - Tax Ready UNCLASSIFIED Australian Taxation Office 20

21 Amending finalisation Un-finalising If an employer identifies the need to amend details after making a finalisation they submit an update event and change the final event indicator to FALSE. Amendments By lodging another pay event or update event for a finalised employee with a final indicator, this overrides the last finalisation. This is akin to the payment summary amendment process. Finalised information reported through Single Touch Payroll can be amended up to five years after the end of financial year. Employers will need to provide a payment summary for any payments not reported and finalised through Single Touch Payroll. UNCLASSIFIED Australian Taxation Office 21

22 Due Dates Transitional due dates Financial year ended 30 June August 2018 Financial year ended 30 June July 2019 Financial year ended 30 June July 2020 UNCLASSIFIED Australian Taxation Office 22

23 Transitioning into STP

24 Starting STP Transition By 1 July 2018 (unless deferral in place) Start anytime during a year Report as a pay event or an update event (Bring in YTD Values) 12 month transition period UNCLASSIFIED Australian Taxation Office 24

25 Special considerations employer type Foreign Employment & Shadow Payroll Insolvency Practitioners Portable Long Service Leave Boards UNCLASSIFIED Australian Taxation Office 25

26 How the ATO will display the data

27 How the data will be used Information reported through Single Touch Payroll will be available for employees, employers and their agents through various platforms Information will be pre-filled into mytax Pay event submission Employees will be able to view their tax and super information Information will be prefilled W1 and W2 Labels *as of 1 July 2019 Information reported through STP will be displayed in the portals Sharing of data with other Commonwealth agencies UNCLASSIFIED Australian Taxation Office 27

28 What you will see Agent for employer BAS/TA Portals Business Portal Employer UNCLASSIFIED Australian Taxation Office 28

29 What you will see Agent for employee UNCLASSIFIED Australian Taxation Office 29

30 What you will see Agent for employer UNCLASSIFIED Australian Taxation Office 30

31 Employees

32 Changes for employees We understand that no longer receiving a payment summary will be a big change for employees. Employers - can begin having conversations with their employees about the changes coming once they start reporting through STP ATO - will provide employers with information and resources that they can use to pass on to their employees about these changes and what they mean for them ATO - will provide assistance to employees who need support through the ATO s ongoing communication strategies such as tax time communications Employees - there is plenty of help and support online (e.g. through my.gov.au, youtube etc) for Australians to open a mygov account and instructions on how to use it. UNCLASSIFIED Australian Taxation Office 32

33 ATO online Viewing payment details When employers report through Single Touch Payroll and make the payment, the employees will be able to see their year-to-date tax withheld in ATO online. To access the information they will need to navigate to My details UNCLASSIFIED Australian Taxation Office 33

34 Employment Income Statement UNCLASSIFIED Australian Taxation Office 34

35 Employment Income Statement UNCLASSIFIED Australian Taxation Office 35

36 Super Reporting

37 Superannuation Reporting Employer pays their staff s superannuation using their existing SuperStream solution > BMS > Clearing house > Fund portal Fund > Payment to fund > Contribution transaction report > Retain existing error processes Employee data will be visible via ATO online services Tailored messages to the employer: e.g. reminder to pay SBR Member Account Transaction Service (MATS) (Transaction Report for ATO) ATO Member Account Transaction Report Member Account Transaction Report Data > Employer information > Employee information > Superannuation contribution Matched records will be allocated to accounts. Matched STP and SuperStream data will be used to identify were an employer may be having difficulty meeting their SG obligation UNCLASSIFIED Australian Taxation Office 37

38 Understanding super reporting Superannuation liability and/or Ordinary Times Earnings (OTE) Superannuation liability disclosure greater than 9.5% Under superannuation guarantee thresholds Defined benefit funds SuperStream reporting & payment obligations do not change SGC process remains the same for missed or late payment UNCLASSIFIED Australian Taxation Office 38

39 Proposed legislative changes Salary sacrifice new calculation for Superannuation Guarantee STP reporting Defined benefits funds APRA v SMSF Super liability disclosure greater than 9.5% UNCLASSIFIED Australian Taxation Office 39

40 Activity Statements

41 Reporting enhancements Activity Statements BAS pre-fill will commence 1 July 2019 (small & medium withholders) W1 & W2 pre-filled Corrections can be made for any variances W1 label removed for large withholders Opening & closing balances Raising PAYGW liabilities in absence of Activity Statements UNCLASSIFIED Australian Taxation Office 41

42 Myth Busting

43 Clearing a few things up Existing payment due dates for both PAYG Withholding and SG remain SuperStream obligations still must be met for employee superannuation contribution payments (including Small Business Superannuation Clearing House). Existing Super Guarantee Charge still applies if you have not paid your employees superannuation contributions on time and statements must still be lodged. STP reporting cannot be submitted via the Tax/BAS agent portals or the Clearing House No blanket deferral for commencement of STP UNCLASSIFIED Australian Taxation Office 43