Single Touch Payroll. Site preparation guide

Transcription

1 Single Touch Payroll Site preparation guide

2 Copyright 2018 Pronto Software Limited. All rights reserved. Single Touch Payroll Preparation Guide Trademarks PRONTO, PRONTO ENTERPRISE MANAGEMENT SYSTEM, PRONTO SOFTWARE (Logo) and Pronto Xi, are trademarks registered by Pronto Software Limited (ABN ) in the United States of America, Australia and other countries. Trademarks of Pronto Software Limited (ABN ).

3 Single Touch Payroll Site preparation guide 1. Introduction 4 2. Company information Review companywide details Review payroll number specific details Check the start and end dates of the pay year 7 3. Employee information Review employee tax file number Review employee residential status Review Name / Date of birth / Address / Contact detail Review Date Paid-up Until Pay Codes Verify and correct the payment summary type Correct payment summary option for each pay code 16 5 Code tables Employee reason ( ER ) for leaving code table 18 Verify the ETP type on ER code table 19 Single Touch Payroll 3

4 1. Introduction 2. Company information What do I need to check to make sure that the information I give to the ATO for Single Touch Payroll (STP) complies with the requirements? In general, the information required for STP is the same as what you have previously submitted for end of year payment summaries. The information may therefore have already been setup; however, it is still a good idea to check it. What follows are the set up and configuration areas that you should check to make sure that the relevant information has been correctly entered for your business. Note: Once the STP patch has been applied, additional setup will be required. Instructions will be provided at the time of deployment to assist you with this process. You must ensure the following company information has been appropriately set up for STP: Australian Business Number (ABN) Branch code Company name Company address Phone number These details, based on the setting in the Name On Payment Summary field in the Control Record (PAY M022) function, can be payroll number specific or companywide. If this field is set to C, the details are companywide. If it is set to D, the details are payroll number specific. Note: This is the same methodology currently used when generating payslips and payment summaries. You can: Review companywide details Review payroll number specific details 4 Pronto Software Legislation Update

5 2.1 Review companywide details You can review companywide details, if you have set the Name On Payment Summary field to C. 1. Select Administration > System Administration > Table Maintenance Menu > Company Name and Address (SYS M101). The Company Name and Address screen is displayed. Note: If your company has one ABN, but multiple branches, each branch must have an individual branch code. The branch code is a unique three-digit identifier allocated by the ATO for each branch of a parent company. The ATO uses this code to identify the customer account that the report relates to. Important: If character 12 to 14 of this field is left blank, it will be replaced with 001. The company name is the name that displayed in the Company Name field. The company address is taken from the Address field. The company phone number is taken from the Phone number field. 2. Click OK when finished reviewing. Review the following details to ensure they are correct: ABN Branch code The ABN is the first 11 characters of the GST Number field, the Branch code is character 12 to 14. Important: The display name of this field is determined by the setting of the Short Desc. field in the Tax Information (SYS X021) function and can be different from what is shown here. Single Touch Payroll 5

6 2.2 Review payroll number specific details You can review payroll number specific details, if you have set the Name On Payment Summary field to D. 1. Select Human Resource Management > Wages & Salary Payroll > System Payroll Administration > Payroll Parameters > Payroll Number Details Maintenance (PAY M039). The Payroll Number Details Maintenance screen is displayed. Important: If character 12 to 14 of this field is left blank, it will be replaced with 001. Company name The company name is the name that displayed on the right of the Payroll Number field. Tip: You can correct a payroll number description using the Payroll Number (SYS M475) function. Company address and phone number The company address and phone number is taken from the Payroll Address Details screen area, accessed by clicking Address. 2. When finished reviewing, press Esc to close the screen. 1. Review the following details to ensure they are correct: ABN The ABN is the value taken from the Payer ABN/WPN field. Branch code The Branch code is the value taken from the Payer Branch Code field. Note: If your company has one ABN, but multiple branches, each branch must have an individual branch code. The branch code is a unique three-digit identifier allocated by the ATO for each branch of a parent company. The ATO uses this code to identify the customer account that the report relates to. 6 Pronto Software Legislation Update

7 2.3 Check the start and end dates of the pay year You must ensure the start and end dates are set up correctly for the current payroll reporting year. 1. Select Human Resource Management > Wages & Salary Payroll Menu > System Payroll Administration > Payroll Parameters > Payroll Number Details Maintenance (PAY M039). The Payroll Number Details Maintenance screen is displayed. 2. Check that the dates shown in the Pay Year Start and Pay Year End fields are set to the correct payroll year. Note: When the company s financial year is different from the payroll financial year, the company s financial year dates will be shown in the Nominated Start Yr and Nominated End Yr fields. 3. Press Esc to exit the screen. Single Touch Payroll 7

8 3. Employee information The ATO requires that the STP report includes the following employee details: Tax File Number (TFN) Name / Date of birth / Address / Contact detail Pay period dates Therefore you need to review this information for all employees. 3.1 Review employee tax file number The employee tax file number is mandatory and must comply with the ATO rules for tax file numbers. Restriction: If you have not been granted access to the following security functions, the employee s TFN and date of birth are not available for you to view. Restriction: Ability to mask employee tax file number (PAY S022) Restriction: Ability to mask employee Date Of Birth (PAY S023) If you require access to this information, see your Pronto Xi System Administrator. Important: The ATO rules for tax file numbers is that you must enter a valid tax file number for an employee, or enter an ATO recognised interim tax file numbers. 1. Select Human Resource Management > Wages & Salary Payroll > Maintain/Enquire on Employees > Maintain an Employee (PAY M108). The Maintain an Employee screen is displayed. 2. Select the required employee. 3. Click Remun. The Remuneration Data screen is displayed. 8 Pronto Software Legislation Update

9 ATO TFN Description The employee has not completed a TFN declaration, or has completed a TFN declaration but chooses not to provide a TFN, or has indicated that they have applied or enquired about a TFN with the ATO and failed to provide a TFN with 28 days. 4. In the Tax File Number field, ensure a valid tax file number has been entered. Important: Where an employee has not provided a tax file number, one of the following ATO codes must be used, specific to the employee s circumstances. The Tax File Number field cannot be blank, otherwise an error message will display A payment summary has been prepared for the employee who has not provided a TFN, but has indicated on the TFN declaration that they have applied or enquired about a TFN with the ATO. The employee is under the age of eighteen and earns $350 or less weekly, or $700 or less fortnightly, or $1517 or less monthly The employee can be exempt from providing the TFN because they are recipient of social security, service pension or other benefits (except new start, sickness allowance, special benefits or partner allowance) The employee has quoted alpha characters for the TFN, or when Tax File Number field does not accept the code entered. 5. When finished reviewing, press Esc to close the screen. Single Touch Payroll 9

10 3.2 Review employee residential status The employee residential status is not specifically included in the STP submission to the ATO, but it can affect the tax calculations for classifications like working holiday makers. The Remuneration Data screen is displayed. Recommendation: It is recommended that you check this information for all employees. 1. Select Human Resource Management > Wages & Salary Payroll > Maintain/Enquire on Employees > Maintain Employees (PAY M108). The Maintain an Employee screen is displayed. 4. In the Local Residential Status field, ensure an appropriate residency status has been entered for the selected employee. Type Description N Non resident H Working Holiday Makers Y Resident with full Medicare. 2. Select the required employee. 3. Click Remun. 1 Resident with half Medicare 2 Resident with no Medicare S Single senior. I Member of illness-separated couple. C Member of couple. 5. When finished reviewing, press Esc to close the screen. 10 Pronto Software Legislation Update

11 3.3 Review Name / Date of birth / Address / Contact detail You must check this information for all employees. 1. Select Human Resource Management > Wages & Salary Payroll > Maintain/Enquire on Employees > Maintain an Employee (PAY M108). The Maintain an Employee screen is displayed. 3.4 Review Date Paid-up Until In Pronto Xi Payroll, an employee s date paid-up until and pay frequency is used to calculate the pay period dates in their next pay run cycle. Recommendation: As the current pay period dates are included when submitting STP reports to the ATO, it is recommended that you check this information for all employees. 1. Select Human Resource Management > Wages & Salary Payroll > Maintain/Enquire on Employees > Maintain an Employee (PAY M108). The Maintain an Employee screen is displayed. 2. Select the required employee. 3. Review the following details: 1. Employee s name 2. Date of birth 3. Address 4. Contact details. 2. Select the required employee. 3. Click Remun. 4. In the Postcode field, ensure a valid postcode is entered. Note: If you enter 9999, the State field defaults to OTH, but you must specify the country code in the Country field. If you enter a postcode that is not 9999, you must enter an Australian state code in the State field, and the Country field is not available. 5. When finished reviewing, press Esc to close the screen. Single Touch Payroll 11

12 The Remuneration Data screen is displayed. 4. Ensure the date in the Date Paid_up Until field correctly reflects the previous pay period end date. Note: If you find many employees dates are incorrect, you can use the Dates - Set Accrual & Paid Up to (PAY M024) function to reset the dates for a range, or all employees. For more information on this function, see the Pronto Xi Help. 5. When finished reviewing, press Esc to close the screen. 12 Pronto Software Legislation Update

13 4. Pay Codes When you pay you employees in Pronto Xi Payroll you use pay codes that have been set up to cater for the different types of earnings your employees are entitled to. These pay codes have settings that control how they are treated from a taxation, superannuation, and reporting perspective. It is recommended that you ensure your pay codes have been categorised correctly before you start reporting via STP, where you are reporting to the ATO each pay run. INB - Individual non-business Option Description 1 Gross Payments 2 Reportable Allowances The setting in the Payment Summary field controls which earnings are reported in the employee s data on the STP report, and in which field the earnings or details will be placed on the STP report. The following tables provide the valid payment summary types and a guide for verifying the Payment Summary option for your pay codes. For more information on the taxation and payment summary requirements for allowances, see the ATO website. 3A 3B 3D 3E 4 Lump Sum A Lump Sum B - 5% assessable Lump Sum D - Tax free redundancy or early retirement scheme Lump sum E - Arrears greater than 12 months Claimable deductions - not included in STP reporting Blank Pay codes type 6 & 7 - tax use only F FBT - Reportable fringe benefits I Exempt foreign income T CDEP Wages W Workplace giving (regular donations by employee to charity) S Reportable employer super contributions - type 9 employee influenced company superannuation U Union/Professional association fees Single Touch Payroll 13

14 ETP - Eligible Termination Payments Required payment summary Field Settings by Pay Code Option Description C1 ETP - Tax free component - pre July 83 Pay code type Pay code use Payment Summary option C2 ETP - Taxable component - post June 83 C3 ETP - Tax free component - Invalidity 1 All 1 or 2 2 All 1 4 Allowances 2 4 Commission/Bonus 1 5 Salary sacrifice 1 8 Allowances Blank, or 2 (if reportable) 9 Company/Employee voluntary superannuation Blank 9 Child support Blank 9 Union fees U 5 Workplace giving W 6 Extra tax Blank 7 Override tax Blank 9 Claimable deductions 4 9 Superannuation - employee influenced S 14 Pronto Software Legislation Update

15 4.1 Verify and correct the payment summary type You must ensure that you have set the correct payment summary type for each pay code. The Pay Code Enquiry screen is displayed. 1. Select Human Resource Management > Wages & Salary Payroll Menu > System Payroll Administration > Maintain Pay Codes > Maintain Pay Codes Australian Method (PAY M098). The Maintain Pay Codes - Australian Method screen is displayed. 3. Review the Cert column as this corresponds to the Payment Summary field shown on the previous screen. Tip: For more information on the taxation and payment summary requirements for allowances, see the ATO website. If the payment summary settings shown in the Cert column are correct for all pay codes press Esc to exit the screen. If the payment summary settings shown in the Cert column are incorrect, see next section (4.2) 2. Click Find then then press F2 Single Touch Payroll 15

16 4.2 Correct payment summary option for each pay code If the payment summary option is incorrect for the selected pay code, you must correct it to ensure that the information in the STP report is correct. The Pay Code Enquiry screen is displayed. 1. Select Human Resource Management > Wages & Salary Payroll Menu > System Payroll Administration > Maintain Pay Codes > Maintain Pay Codes Australian Method (PAY M098). The Maintain Pay Codes - Australian Method screen is displayed. 3. Review the setting in the Cert column for all pay codes. 4. If a pay code has this set incorrectly, select the pay code with the incorrect Cert options. 5. Click Select. This returns to the Maintain Pay Codes Australian Method screen (as per step 1). 6. Click Correct. 7. In the Payment Summary field, enter the correct payment summary option for the pay code. 8. Click OK. 9. Repeat steps 2 to 7 until all pay codes have been checked and corrected, as required. Review all pay codes in the list 2. Click Find then then press F2. Important: For salary sacrifice super and employee influenced pay codes, an additional check is required on the Unit Description field. For salary sacrifice pay codes, this field should be set to E, for employee influenced super pay codes this should be set to S. 16 Pronto Software Legislation Update

17 5 Code tables 5.1 Employee reason ( ER ) for leaving code table You must ensure that the employee reason for leaving codes you have set up are linked to appropriate ATO specified ETP types. The ETP type codes that can be assigned to an employee as reason for leaving, are used in an STP submission for the code that identifies the reason for the Employment Termination Payment (ETP) being made. If the ETP type attached to the employee reason for leaving code used during the termination is not an ATO allowed value, then the STP submission for that employee will be rejected. Valid values are: Code R O S Description ETP made because of one of the following: early retirement scheme, genuine redundancy, invalidity, or compensation for personal injury, unfair dismissal, harassment, or discrimination. Other ETP not described by R (for example: golden handshake, gratuity, payment in lieu of notice, payment for unused sick leave, or payment for unused rostered days off). ETP code R payment received in the current year and received another ETP (code R or code O), or a transitional termination payment, in an earlier income year for the same termination of employment. P ETP code O payment received in the current year and received another ETP (code R or code O), or a transitional termination payment, in an earlier income year for the same termination of employment. D Death benefit ETP paid to a dependant of the deceased. B Death benefit ETP paid to a non-dependant of the deceased and a termination payment was made to the non-dependant in a previous income year for the same termination. N Death benefit ETP paid to a non-dependant of the deceased. T Death benefit ETP paid to a trustee of the deceased estate Single Touch Payroll 17

18 Verify the ETP type on ER code table 1. Select Human Resource Management > Wages & Salary Payroll Menu > System Payroll Administration > System Payroll Codes > Employee Reason for Leaving (SYS M516). The Employee Reason for Leaving screen is displayed. 2. Review the setting in the Type column for codes. If a code has this set incorrectly, Correct the code with the correct Type. If all codes have the Type set correctly for all codes press Esc to exit the screen. 18 Pronto Software Legislation Update

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