CA Management Services 1

Single Touch Payroll

Presented by Damon Guest and Colin Atkinston\ CA Management Services 13 March 2019

Key Terms 3

1

STP – Single Touch Payroll

2

BMS – Business Management Software –in this instance Payroll.

3

DSP – Digital Service Provider (Payroll Software Vendor)

4

SBR – Standard Business Reporting (STP uses the new protocols being established for SBR2)

5

BMS ID – Business Management System ID

What is Single Touch Payroll

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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 information

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

How STP Works 5

STP Dates

Single Touch Payroll reporting went live for employers with 20 or more employees.

July 1 2018

Employers with 19 or less employees may be required to report through Single Touch Payroll, as legislation is due to be reviewed in February 2019.

July 1 2019

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ATO will

continue

to

develop

and

improve

the STP

Process

ATO Reassurance

“I want to reassure small business and give my personal guarantee that our approach to extending Single Touch Payroll will be flexible, reasonable and pragmatic. In particular, the ATO understands there will be circumstances where more time is needed to implement STP or lodge reports.”

Chris Jordan

Commissioner of Taxation

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Payroll and Update Events

8

Payroll Event (PAYEVNT) services provide business or their registered intermediary the ability to report payroll run information to the ATO as required by STP. This also includes out of cycle payruns.

The update event reports changes to the employee data when not made via payroll. It may be used to report non-payment data or to assist with EOFY processes.

Std Payroll and Update 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

Field Validation

10

• A to Z

• a to z

• 0 to 9

• ! @ $ % & * ( ) - = [ ] ; : ' " , . ? /

• a space character

A text character must be one of the following:

Micro Employers 11

In response to the market request by the ATO, 31 companies have put forward product proposals to offer

low-cost STP solutions. The solutions are required to be

affordable (costing less than $10 per month), take only minutes to complete each pay period and not require the employer to maintain

the software.

Standard STP file contains

140 fields that need to be included for submission

Micro submissions reduce this requirement by 45 fields

Micro Solutions Main Differences 12

• A micro business may report the total amount of allowances for each pay event rather than grouped and summed by type. Deductions must be itemized.

• To support preparation of an individual’s tax return, the employer will need to itemize the allowances for an employee at year-end and keep a record for tax compliance purposes.

Allowances and deductions:

• Not required for registered tailored micro solution. All fixes can be reported via a submit or update file.

Full File Replacement:

STP Quarterly: • Micro businesses who rely on a registered tax or BAS agent, are able to report quarterly for the first two years, rather than each time payroll is run.

Micro Employer STP SolutionsAvailable now 13

Company name Solution name Solution type Pricing Website

Cashflow Manager Wages 1-4 Desktop$10 or less per

monthcashflow-manager.com.au/wages1-4External Link

ePayroll ePayroll Cloud$10 or less per

monthepayroll.com.au/microExternal Link

Single Touch Pty Ltd STP - Data API, XML, CSV$10 or less per

monthsingletouch.com.auExternal Link

CloudPayroll Pty Ltd CloudPayroll MicroPC, Smart phone, Smart

device

$10 or less per

monthcloudpayroll.com.au/microExternal Link

AccXite Pty Ltd AccXite Web app, Desktop, Mobile app $10 a month accxite.com.au/softwareExternal Link

Free Accounting

Software Pty Ltd

Free Accounting

SoftwareDesktop Free

freeaccountingsoftware.com.au/single_touch_payrollExternal

Link

Micro Employer STP SolutionsIn development 14

Company name Solution name Solution type Pricing WebsiteIronbark Software Ironbark Payroll Web-based $10 or less per month Coming soon

Reckon GovConnect STP Mobile App $10 or less per month reckon.com/au/single-touch-payrollExternal Link

sodaPAY sodaPAY Mobile One off $20 payment sodapay.com.auExternal Link

SRI Enterprise Software Pty

LtdSriPay Web-based $10 or less per month sri.com.au/sri-payExternal Link

ePayDay Pty LTD e-PayDay FREEPAY® CloudFree First two

Employeesfreepay.cloudExternal Link

BAS Off Pty Ltd BAS Off Cloud $10 or less per month basoff.com.au/single_touch_payrollExternal Link

ZRI Pty Ltd SmartSTeP® Cloud based, Web Application, Mobile App $10 or less per month zri.com.au/stpExternal Link

OB Secure Messaging ZeroCloud Cloud Free obsecuremessaging.com/products-servicesExternal Link

GovReportsInteractive Accounts Manager (IAM

- STP)Online application, Portal, Mobile app $10 or less per month govreports.com.au/STPExternal Link

LodgeiT Pty Ltd LodgeiT Payroll Web based, Desktop, Tablet, Smartphone Free lodgeit.net.au/single-touch-payroll/External Link

Xero Australia Pty Ltd Xero Payroll Web based $10 or less per month xero.com/au/stpExternal Link

Easy Pay Slip Pty Ltd Easy PayslipMobile phone app, tablet app, website, cloud

based solution$10 or less per month easypayslip.comExternal Link

Myaccountant Technology

Pty LtdMyPayroll App Web app $10 or less per month Coming 1 April 2019

MYOB Australia Pty Ltd MYOB Essentials Payroll Web based $10 or less per monthmyob.com/au/accounting-software/essentials-

payrollExternal Link

Intuit Australia Pty Ltd QuickBooks Payroll Cloud, Web based $10 or less per month quickbooks.intuit.com/au/payroll/External Link

Catsoft STPcat Smartphone app $10 or less per month Coming in May

Points to consider:

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Understand your current position

Not all solutions are created equal

Test the solution before signing up

Understand the minimum terms

What else do you get along with STP?

You get what you pay for

Implement what you need not necessarily what you want

Superannuation Reporting 16

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

STP Enhancements 17

EMPLOYEE ONBOARDINGSUPERANNUATION REPORTING AND LIABILITY

TFN SHARING

Superannuation Changes

18

Super - An employer commits an offence if they

are given a direction to pay the amount of an

outstanding liability and the amount of the liability

is not discharged within the period specified in the direction. The maximum penalty for the offence is

50 penalty units, imprisonment for 12

months, or both

The ATO is able to notify affected employees on non

compliance of SGC

All employers are required to include ‘salary

sacrificed’ superannuation amounts paid to

employees superannuation funds

APRA-regulated superannuation fund

reporting details contributions paid by employers for each

employee member account under events-based

reporting, meaning within 10 days of receiving funds

Other changes 19

• Employee on-boarding (employee completed via mygov and prints or is linked to employers Payroll system)

• Tax file number declaration

• Superannuation (super) standard choice

• Withholding declaration

• Medicare levy variation declaration.

• TFN Sharing

• STP Engagement Authority, annual declaration for agents to submit STP on behalf of employers.

Exemptions 20

The ATO may grant you an exemption from Single Touch Payroll reporting if:

• if you have no internet or an unreliable connection

• experiencing hardship

Penalties 21

There will be no penalties for mistakes, missed or late reports

for the first year

Notify ATO

If you are using a cloud solution, you need to notify the ATO of the unique software id.

This can be accomplished by phone or through Access Manager.

We recommend Access Manager, otherwise you will be on hold for a very long time.

If you need help, please contact us.

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WageEasy Example 1 23

24

25

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)

26

27

STP reportable

deductions fall under

one of 2 categories

• Workplace Giving

• Fees (Union)

28

29

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

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31

Attache Example 2 32

33

34

Xero Example 3 35

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Employer STP Reporting Screen 37

Employer STP Reporting Screen 38

Draft Employee Experience 39

CA Management Services 40

CA Management Services 41

MANAGEMENT FINANCE PAYROLL IT MARKETING HUMAN RESOURCES

Assistance? 42

Outsourcing Staff Software Mentoring/Training

The Practical 43

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

Tax Returns 44

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 – as long as you have started the process, the ATO are being reasonable

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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

• If your payroll solution is STP compliant, you can start now

46

Payroll Systems

• Attaché - Upgrade to Attaché BI version 18.3 as soon as possible

• MYOB – Need to be on AccountRight or MYOB Essentials. MYOB Premier V19 is NOT being upgraded

• Xero – available now

• SAGE - Wage Easy - available now

• Reckon Accounts – Is available with current release

• Quickbooks – available now

• HR3 - Available shortly

Please contact us and we can confirm the status of other payroll systems.

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Payroll Issues 48

NEED TO BE ON THE CURRENT VERSION

FEES BEING CHARGED FOR STP

END OF YEAR PROCESSES

What do you need to do?

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Answers If you have any questions not answered today, let us know and we will find out the answers for you

Training Ensure your staff are trained and up-to-date on all legislative requirements

Upgrade Upgrade your payroll system as early as possible

Availability Check with us and we will find out when your STP ready software will be available

Processes Ensure your business processes will cater to the requirements of STP

Employees Ensure your employee details are correct

Business Challenges

50

Software Compliance

Employers <= 4 employees

Linking to the ATO

Accounting software is integrated

with Payroll

Myob Premier v19

Improvements and change

RFI Technology 51

RFI – Payroll Assistance 52

LINK TO THE ATO PAYROLL QUERIES – ETP (ELIGIBLE TERMINATION PAYMENTS)

IF YOUR EXISTING PAYROLL SYSTEM IS NOT GOING TO CONVERT

CHANGE TO OUTSOURCING THE PAYROLL WORK, YOU COULD ALWAYS

SWAP TO OUR PAYROLL BUREAU SERVICE AND LET OUR TEAM TAKE

THE HASSLES AWAY

CA Management Services Contact Details

• Address: 88 Burswood Road, Burswood WA 6100

• Phone: 08 9470 9922

• Email: support@caman.com.au

• Website: www.caman.com.au

Colin Atkinson

Damon Guest

Margie Walkerden

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