What is Single Touch Payroll. Matthew Addison - Institute of Certified Bookkeepers Des Parker - ATO

Transcription

1 What is Single Touch Payroll Matthew Addison - Institute of Certified Bookkeepers Des Parker - ATO

2 Single Touch Payroll (Part 1) Explanation Matthew Addison (Executive Director Institute of Certified Bookkeepers) An explanation of what Single Touch Payroll is and what it means for Practitioners. Who must report their payroll using Single Touch Payroll? Who could? What happens to Payment Summaries? How will I comply? What about the noncomputerised employers? When? What if

3 Matthew Addison & Des Parker

4 Agenda What is Single Touch Payroll What is being sent? What does it mean Part 2: Fixing / Authorisations

5 STP is 3 components Payroll Reporting Super Payment reporting Employee Commencement

6 Payroll Reporting Regular Cycle Out of Cycle Fix End of Year

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8 Payroll reporting One file submitted each payrun Employer level information Identity Gross Wages (W1) & Gross Tax (W2) For the period / ie incuded in this payrun Employee information Identity YTD payroll information (Wages, Allow, Ded, Tax, YTD Super accrued

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14 ETPs What is currently reported For ETPs an employer reports each payment with the following elements: Date of payment Total Tax withheld Taxable component Tax-free component ETP code UNCLASSIFIED ETP under STP 14

15 Multiple ETPs UNCLASSIFIED ETP under STP 15

16 ETP in STP Under STP the employer will continue to report ETPs each payment (up to 25 can be reported in a Financial year). The payroll event contains the same ETP elements as the payment summary. Once a payment is reported it will continue to be reported in subsequent payroll events. # Date of payment Total Tax withheld Taxable component Tax-free component ETP code 1 15/09/ R 2 15/10/ R

17 Details in the PayEvent Allowances Deductions

18 Employee withholding details The fields in a payevent that replace the TFN Dec

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20 Employer Information Identified by ABN or WPN Separate Payevents per Branch (if applic.) Each Payroll System has Mandatory unique BMS ID (Business Management System) Separate Payevent per BMS STP BIG 30/8/17 v1.0 Sn Rule 1

21 Employee Information TFN or ABN (must have one) Exemption codes Voluntary Agreement Contractor Must have an ABN This is a voluntary part of STP If Contractor becomes and employee Report both and all fields YTD STP BIG 30/8/17 v1.0 Sn Rule 7

22 Regular Pay Cycle Whatever is your normal reporting Weekly, fortnightly, half month, monthly, all Alternative is Out of Cycle It doesn t matter PayEvent as compared to an Update STP BIG 30/8/17 v1.0 Sn 3.1.1

23 Payments Subject to Withholding (1) This is when you have to report Withholding payments and amount withheld: payments for work and services payments for retirement or termination of employment benefit and compensation payments.

24 Payments subject to withholding (2) Reporting of nil amounts: only required to report if a payment is made if no payment is made, there is no reporting obligation however, if a payment is made and the amount withheld is zero, then this zero must be reported.

25 When Report to ATO: on or before payday Electronic Payments: Date stipulated in the transaction, or Date payment is intended to be paid into employees account Paid STP BIG 30/8/17 v1.0 Sn Rule 1 & 2

26 Large Withholders $1m withholding per year Nothing Changes (continue to notify the Commissioner of their PAYG withholding based on payment) continue to pay their PAYG withholding liability electronically.

27 Who PayEvent must include at least 1 employee (8) Each Employee with an amount subject to withholding PayEvent may include information for other employees ie TFN Dec info Each Employee (each Payee Payroll ID) may only appear once (9) STP BIG 30/8/17 v1.0 Sn Rule 3 & 8 & 9

28 What YTD Values (each employee) Gross Salary or wages Allowances Deductions PAYG Withholding YTD Values may have reduced YTD Values cant be negative STP BIG 30/8/17 v1.0 Sn Rule 4

29 What (2) Period Values (Employer) Gross Salary or wages (W1) PAYG Withholding (W2) Each employee included in the PayEvent Ie prefilling the BAS with the amounts Values can be negative STP BIG 30/8/17 v1.0 Sn Rule 5

30 What (3) Multiple Payments to the same employee A single STP report with all payments, or Multiple reports STP Reports have a time stamp for sequence processing STP BIG 30/8/17 v1.0 Sn Rule 10 & 11

31 Super..summary Report all super that the employer is obligated to pay

32 Super The employers obligation for each employee YTD Can be just the SG amount Can be all Super including Salary Sacrifice If Zero report Zero Values can t be negative If cant report Super then must report OTE STP BIG 30/8/17 v1.0 Sn Rule 6

33 What does the ATO do.. Displays Employee YTD on mygov The latest YTD values will be displayed If employee has multiple payroll ATO displays each BMS ID record ATO will display each Payee ID record ie multiple ATO Payment Summaries Prefills BAS with aggregated W1 & W2 ATO will aggregate BMS ID amounts STP BIG 30/8/17 v1.0 Sn Rule 3

34 End of Year No requirement to provide payment summaries to employees No PSAR/empdupe submission Both replaced by Final indicator

35 Payment Summaries replaced

36 End of Year Employer to Declare that data is True and Correct Final (PayEvent includes a Final indicator) Then ATO sends data to prefill Tax Returns Marks it as final on mygov By 14/8/2018, 31/7/2019, 14/7/2020 STP BIG 30/8/17 v1.0 Sn 3.3.1

37 End of Year RESC / RFBA YTD values can be provided at anytime RFBA is the FBT year to 31 March value to be reported RESC is the year to 30 June Same end of year process send with final indicator STP BIG 30/8/17 v1.0 Sn 3.3.3

38 End of Year If you don t Employer must Provide Payment Summaries to the employee Still mark Final indicator through STP STP BIG 30/8/17 v1.0

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40 Thank You

41 Amend End of Year Send an Update with Final indicator Send an Update and turn Final off Within 14 days of identification STP Final can be amended for 5 years STP BIG 30/8/17 v1.0 Sn 3.3.6

42 Mandatory

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44 Voluntary