Single Touch Payroll. What is Single Touch Payroll. Damon Guest 28/05/2018

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1 Single Touch Payroll Damon Guest What is Single Touch Payroll 2 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 1

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3 Important Dates 5 July July Single Touch Payroll reporting will be mandatory for employers with 20 or more employees. Employers with 19 or less employees will be required to report through Single Touch Payroll, subject to legislation being passed. ATO will continue to develop and improve the STP Process Who did you Count? 6 April 1 st 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) 3

4 Employees to Exclude 7 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 Payroll Events 8 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

5 Payroll Event Data 9 Payroll Event Fields ATO Labels Registered 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 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 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 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 10 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 5

6 Exemptions 11 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. Deferrals 12 6

7 Deferrals cont d 13 The latest date you can apply for a DSP deferral is Thursday 31 May Penalties 14 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. 7

8 STP Submission how it works 15 Authentication 16 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. 8

9 WageEasy Example 1 17 Prior to starting review Allowance/Deduction setup 18 9

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11 21 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 22 STP reportable deductions fall under one of 2 categories Workplace Giving Fees (Union) 11

12 23 To modify Allowances, go to Setup, Allowances and select, go to the ATO Payment Summary Tab 24 12

13 25 Once STP Setup is complete, selecting the STP icon changes automatically to Single Touch Payroll Reporting (PayEvent reporting) 26 13

14 27 Attache - Example Setup & Submission

15 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 30 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 resubmission. There is also no time limit on uploading data in cases where there is a slow internet connection or the file is very large. 15

16 Business Portal STP Reporting 31 Employer STP Reporting Screen 32 16

17 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 17

18 Checklist 35 The Practical 36 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 18

19 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 38 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 19

20 The Challenge 39 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 1 st July Getting names and info correct and thru the ATO data checks Superannuation updates has cleaned up payroll data a lot Payroll Systems 40 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 20

21 Payroll Systems Update 41 Xero Progressive compliance from 1 July, Xero subscribers will have a deferral of as much as six months Deferral number 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 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 Note versions Payroll Systems Update Cont d 42 Attache STP Version released and working - Will require an upgrade to BI 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 21

22 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 44 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 3 rd party STP addon eg spreadsheets upload from payroll reports 22

23 Supporting Links 45 STP Authoristations and Declarations Scenarios ATO - Business Implementation Guide ATO Deferral Request Form Allowance and Deduction setup CA Management Services Contact Details 46 Address: 88 Burswood Road, Burswood WA 6100 Phone: support@caman.com.au Website: Questions? 23