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MYOB Advanced People Payroll (AU) End of Financial Year 2018 – Non STP June 2018

2 | MYOB APEOFY – Payroll (AU) Non STP simplify success

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Version 2017.1


EOFY Checklist 2017 – 2018 .................................................................................................................. 4 My.MYOB and SBR registration ...................................................................................................... 4 Check Details ................................................................................................................................... 4 Reportable Fringe Benefits .............................................................................................................. 4 Pay Summary Processing................................................................................................................ 5 Pay Summary Distribution to Employees ........................................................................................ 5 Send to ATO .................................................................................................................................... 5

Objectives................................................................................................................................................ 6 Reportable Fringe Benefits ..................................................................................................................... 7

Overview .............................................................................................................................................. 7 Fringe Benefit Pay Item Type .............................................................................................................. 7 Fringe Benefit Pay Item ....................................................................................................................... 8 Update Reportable Fringe Benefit Amounts...................................................................................... 10

Payment Summaries ............................................................................................................................. 16 Overview ............................................................................................................................................ 16

Create Batch .................................................................................................................................. 16 Submit ............................................................................................................................................ 18 Approve .......................................................................................................................................... 19 Send to ATO .................................................................................................................................. 19

Distributing Payment Summaries ...................................................................................................... 21 Email/Print Payment Summaries ................................................................................................... 21 Amended Payment Summaries ..................................................................................................... 22

Compliance Update ............................................................................................................................... 23 Superannuation Change ....................................................................................................................... 24

Existing .......................................................................................................................................... 24 New ................................................................................................................................................ 26


EOFY Checklist 2017 – 2018

Please complete the tasks in the sequence

My.MYOB and SBR registration

Confirm my.MYOB, my.dot account details.

SBR Registration completed

Check Details

Check Reportable Branches have ABN details

Check Company phone and address details are correct.

Are employee names, addresses and date of birth complete?

Confirm Contact Details on Payroll Preferences is the Contact Person for the ATO

Are the details on the Payroll Preferences > General Settings tab for the Payment Summary Settings correct? Can only print or email.

Ensure the Employee’s TFN has been updated in the Taxation tab of the Payment Details form (MPPP2310).

Update the Employment tab on the Pay Details form (MPPP23310) to show Payment Summary Type of Individual Non-Business

Are the distribution settings on the Pay Details > Settings tab for each employee correct?

Reportable Fringe Benefits

Add new or review existing Exempt Fringe Benefits Pay Item Type.

Add new or review existing Reportable Fringe Benefits Pay Items.

Add new or review existing Pay Group/s form (MPPP2710) RFB (Reportable Fringe Benefits).

Add the new or review existing Reportable Fringe Benefits pay group to the Employee Pay Details.


Create new Pay for RFB Pay Group with Pay Period Ending and Physical Pay Date no later than 31/03/2018.

Enter RFB Pay Item with amounts for each Employee who received benefits.

Process Payroll

Complete Payroll

Pay Summary Processing

Review Create Batch form (MPPP5003); People > Payroll > Processes > Payment Summaries for 2018

Save Batch ready for processing.

Pay Summary Distribution to Employees

Process Summaries – Process Summary form (MPPP5211) People > Payroll > Processes > Payment Summaries.

Send to ATO

Send to ATO – Manage Batch form (MPPP5004) People > Payroll > Processes > Payment Summaries.

On or before August 14, 2018 send the batch or batches to the ATO.

On the Payment Summary Manage Batch form (MPPP5004) on the Actions dropdown list

select

Enter your MYOB login details.


Objectives

This document covers in detail the workflow and processes to successfully complete your year end if you have not started to send your pay information via Single Touch Payroll.

There are some important tasks that need to be completed for every payroll site that will be reporting by SBR to the ATO for payment summaries.

IMPORTANT

IMPORTANT

IMPORTANT

IMPORTANT

IMPORTANT

Detailed instructions on the following processes are included:

• Setting up Payroll for reporting of exempt and non-exempt Fringe Benefit payments.

• Loading Reportable Fringe Benefits amounts.

• Distributing the Payment Summaries to employees.

• Sending the PSAR file to the ATO.

The contact name and number for the ATO must have a my.MYOB login. http://community.myob.com/t5/Advanced-alerts-and-updates/Advanced-People-EOFY-my-MYOB-amp-SBR-registration-required-for/m-p/463748/thread-id/247

The site must be registered for SBR via Payroll Preferences, SBR tab . http://community.myob.com/t5/Advanced-alerts-and-updates/Advanced-People-EOFY-my-MYOB-amp-SBR-registration-required-for/m-p/463748/thread-id/247

Contact person for the ATO must be the Contact in Payroll Preferences, General Settings tab.

The Employees must have Individual Non-Business Payment Summary type on the Pay Details, Employment tab.

If Amended Payment Summaries are required these need to be processed manually.


Reportable Fringe Benefits

Overview Some employees may have Reportable Fringe Benefits that are to be shown on the Payment Summary. Before printing your Payment Summaries, these Reportable Fringe Benefits must be entered.

You set up Reportable Fringe Benefit Pay Items using the Pay Item Type of FRINGE BENEFIT REPORTING.

Fringe Benefit Pay Item Type There is a Pay Item Type to cater for Reportable Fringe Benefits. By default, this pay item type has the Payroll Tax Liable checkbox ticked. Not all Reportable Fringe Benefits are liable for Payroll Tax, so you may need to create an additional Pay Item Type for these exempt fringe benefit payments.

Figure: Pay Item Types


Fringe Benefit Pay Item There can be one or more Pay Items required to correctly update the payroll for Reportable Fringe Benefits. Four variations on how these pay items can be setup are shown in the screenshots below. On each Pay Item (MPPP2210) the Additional Info tab determines how the amounts will be reported for Reportable Fringe Benefits.

1. Reportable Fringe Benefits that are;

• non-exempt, and

• the amounts to be entered are already grossed-up.

Figure: Pay Item RFB


• Exempt, and

• the amounts to be entered are already grossed-up.

Figure: Pay Item for RFB



• non-exempt, and

• the amounts to be entered have not been grossed-up.



• Exempt, and

• the amounts to be entered have not been grossed-up.



Update Reportable Fringe Benefit Amounts The Fringe Benefit Tax Year is from April 1 the previous year to March 31 the current year. The Pay Period End Date should be no later than March 31 of the current year.

As your client does not yet use Single Touch Payroll (STP) you can enter the Physical Pay Date as March 31, 2018.

If the Pay Period End date is after March 31, the Reportable Fringe Benefit will not appear in the correct Fringe Benefit Year.

Pay Period End Date Payment Summary Fringe Benefit Year Shown on Payment

Summary

30 June 2018 2017 – 2018 2018 – 2019 No

31 March 2018 2017 – 2018 2017 – 2018 Yes

Employees can only be added to a current pay run on the fly if their pay frequency matches the pay run frequency. If they are added to a current pay run, then the standard pay of that frequency will be brought into the pay run. To avoid having to go into each employee and manually deleting the pay elements it is recommended that the following workflow be adopted to update for Reportable Fringe Benefits.

In this workflow, the fringe benefit amounts will be updated using a new pay group with a Pay Frequency = Annually.

1. On the Pay Groups form (MPPP2710); People > Payroll > Configuration > Configuration, add a new pay group as shown below then save your changes.

Figure: New Pay Group for Reportable Fringe Benefits


Annual Pay Group for RFB

Field Details

Pay Group ID ARFB

Description Reportable Fringe Benefits

Hours per Day 0.0000

Hours per Pay 0.0000

Hours per Year 0.0000

Pay Frequency Annually

Pay Default N/A

Last Pay Period Start Date 01/04/2016

Last Pay Period End Date 31/03/2017

Last Physical Pay Date 31/03/2017

Active

2. On the Employee Pay Group form (MPPP2250); People > Payroll > Work Area > Manage, add the new pay group for Reportable Fringe Benefits to each employee to be updated.

a. Select the Employee from the search window or enter the Employee ID.

b. Add the new Reportable Fringe Benefits pay group.

Figure: Reportable Fringe Benefits pay group

You can go into each Pay Details for each employee attached to the Reportable Fringe Benefit pay group and add the Pay Item to the Standard Pay or you can add the pay item to a current pay on the fly.


3. Once all the employees have been updated then go to the Manage Pays form (MPPP4110) and from the Actions dropdown list Create Pay

Figure: Create Pay

4. Select the new pay group and click OK.

Figure: Create New Pay dialogue box

Figure: Fringe Benefits One-off Pay

5. Once the pay is OPEN then . 6. As this payroll is not configured for STP, you can leave the default dates as:

Physical pay day: 31/03/2018

Pay period Start: 1/4/2017

Pay period ends: 31/03/2018

Figure: Pay dates

Once Single Touch Payroll (STP) is active in MYOB Advanced People, you MUST enter a date for the Physical pay date; no later than 30th June of that financial year. When using STP you must “report a pay event to the ATO on or before the pay day”*

Having a Physical pay date of 31st March would be outside of ATO reporting requirements.

*https://www.ato.gov.au/Business/Single-Touch-Payroll/In-detail/What-you-need-to-report-through-Single-Touch-Payroll/?page=2#Guidance_for_pay_event_reporting .


7. Open each employee’s pay and add the Reportable Fringe Benefits (RFB) pay item that matches the reporting requirements of that employee’s fringe benefit.

Figure: Current Pay with Reportable FBT

8. Once all employees have been updated for RFB then return to the pay run by clicking on the Pay Run ID: hyperlink.


Process Pay Run 1. On the Pay Run Details form (MPPP3120) from the main toolbar, select Action and from the

dropdown list, then Process.

Figure: Process function on the Action dropdown list

2. A Pay Run popup will appear.

Figure: Pay Run popup before Process Pay Run

3. Once you select OK you can only cancel or complete the Pay Run.

The Pay Run Status changes to PROCESSING.

Complete Pay Run 1. Staying on the Pay Run form, from the main toolbar, select Action and then from the

dropdown list select Complete.

Figure: Complete function under the Actions dropdown list

2. The following Pay Run popup appears.

Figure: Pay Run popup before Complete


3. Once you select OK, the Pay Run is complete.

Figure: Completed Pay Run


Payment Summaries

Overview Payment Summaries are created using a Batch process, like the processes for Superannuation and Payroll Tax reporting.

It is very important that all the information to be reported to the ATO is correct in Advanced People before you send the batch or batches to the ATO. If you need to change a payment summary after you have completed the process, you will have to create a manual Amended Payment Summary and lodge outside Advanced People. There is no Amended Payment Summary available.

Create Batch Create a Payment Summary batch for the selected period. You can create one or more batches for payment summaries. If an employee is in one batch they will be excluded from any other batches created.

1. Open Create Batch form (MPPP5003); People > Payroll > Processing > Pay Summaries.

2. Select the Financial Year: 2018. The employees with Individual Non-Business payment type setting in the Pay Details on the Employment tab and have been paid in the Financial Year selected, will appear automatically on the form.

3. From the dropdown list select . This will take you to the Manage Batch form.

The Manage Batch form (MPPP5004) holds all the information that will be sent to the ATO.

The summary or header of the form records the details of the financial year’s payment summary process. These details include the Batch Status; the date and time the batch was created; how many records were submitted to the ATO and how many payment summaries were distributed.

Figure: Payment Summary batch header

The Payment Summaries Issued section shows a high-level view of the payment summaries in the payroll.

Save Batch Submit Approve Send to ATO


The footer of the form shows details of the payment summaries with these details being split into 4 tabs.

Tab 1 – Payment Details The Payment Details tab records all the information about the various fields that will be updated on the Payment Summary for individual employees, so the Pay Summary Categories, fields such as Total Tax Withheld, Gross Payments, Reportable Fringe Benefits.

Figure: Payment Details tab of payment summary batch.

Tab 2 – Employee Details The Employee Details shows the personal information of the employee; the Lodgement Status of the payment summary, the Payment Summary Type and the Tax File Number (TFN). If information is missing from the employee’s record a warning will be given. Such as

.

Once all the records have been correctly updated you must come back to the Batch and from the Actions dropdown list on the form’s toolbar Reset the batch.

Resetting the batch updates the information from the employee record to the payment summary batch.


Tab 3 – Payment Totals The Payment Totals shows the total of each Payment Summary Category and should equal the total of the categories that are on the Payment Details tab.

Figure: Payment Totals Tab. Totals by Pay Summary Category

Tab 4 – Pay Item Totals. The total of the payment summary amounts by pay items is in the Pay Item Totals tab. This tab has an Export History feature that will export the individual pay items by Employee. The export can then be viewed in an external program such as Microsoft Excel for analysis.

Figure: Pay Item Totals tab.

Figure: Example of Pay Item Totals Export History in excel.

Submit The Submit action is only available if the approval functionality has been setup and will be greyed out if this has not been configured.

When available, selecting the action will mark the batch to be approved by a MYOB Payroll user.


Approve The Approve action is only available if the approval functionality has been setup and will be greyed out if this has not been configured.

When available, selecting the action will approve the batch so it can be marked as Sent to ATO.

Send to ATO Batches must be sent to the ATO, on or before August 14, 2018 so this step may be completed after you distribute the payment summaries to employees.

As mentioned previously in the Checklist; to send payment summaries to the ATO from Advanced People, the person who is the contact person for the ATO requires:

1. A My.MYOB account

2. To be the contact name and number on the Payroll Preferences, General Settings tab.

The payroll also needs to be registered for SBR via the SBR Registration tab on the Payroll Preferences.

When the batches have been created, and the information reported on the payment summaries has been checked and amounts reconciled, start the transfer of the payment summary files to the ATO by going to the Actions dropdown list and select Send to ATO.

Figure: Actions dropdown list with Send to ATO

A dialogue box will appear and the registered person with the my.MYOB login enters their username and password.

Figure: My.MYOB login dialogue box

The file will be transferred to the ATO.

At any time BEFORE batches are sent to the ATO you can reset and/or delete a Batch. You reset on the Manage Batch form (MPPP5004). If you delete a batch the payments are released and included in a new batch.

Once a batch has been approved and at least one payment summary has been distributed, then you need to void the batch from the Manage Batch or Batch Summary forms,

If you have submitted payment summaries to the ATO you cannot void or delete batches, if the submission fails you reset the batch.


To delete a batch, you must be on the Batch Summary form (MPPP4055); People > Payroll > Processes > Payment Summaries, highlight the batch for deletion and select Delete Batch from the Actions dropdown list.

Figure: Delete Batch Action on Batch Summary form.


Distributing Payment Summaries Payment Summaries must be distributed to employees on or before July 14, of each year.

Email/Print Payment Summaries When you are ready to distribute the payment summaries to employees,

1. Go to the Manage Batch form (MPPP5004).

2. Click on the hyperlink on the form toolbar. You will be taken to the Process Summary form (MPPP5211); People > Payroll > Processes > Process Summary.

Figure: Process Summary form

The default distribution details that are on each employee’s Settings tab on the Pay Details will appear. In our example above, Matthew does not have Print Enabled for Payment Summaries, we can override this on the Process Summary form. Yvette does not have Email Attachment Enabled, this can also be overridden on this form.

3. Select the distribution method from the Actions: list. You can either

• Print, or

• Email

Payment Summaries from MYOB Advanced People.

4. If employees are not ticked and you wish to change the default distribution method then, tick the checkbox in the first column.

5. When you are happy with the selections then from the form toolbar.

The Process Summary, process can be scheduled to run automatically Click the

schedule button drop down menu and select Add. Fill the Automation Schedule screen with your preferred schedule.

At any time, you can go back to the Process Summary form and print or email one or many payment summaries.


Amended Payment Summaries MYOB Advanced People does not have the ability to enter amended payment summaries. If you find an error, then you must raise a manual payment summary and send the ATO original form to

Australian Taxation Office Locked Bag 50 PENRITH NSW 2740 Once payment summaries have been given to an employee or sent to the ATO you cannot change them. If an error is found, then you must provide a new Payment Summary and mark the amending a payment summary checkbox.

Figure: amending a payment summary checkbox

Once completed with all payee, payment and payer information on each amended payment summary you must send these to the ATO and give a copy to the employee.


Compliance Update

The End of Financial Year (EOFY) compliance upgrade for 2018 will include the Budget updates for the financial year ending 30th June 2019.

The compliance upgrade includes changes to the thresholds for Tax, Superannuation, HECS, SFSS and TSL. All legislative changes will be updated to the DCE engine and will come into effect 1st July, 2018.

The changes to the tax thresholds for EOFY 2019 are:

Rate (%) Current tax thresholds Income range

Thresholds from 1st July, 2018

Tax free 0 – 18,200 0 – 18,200

19 18,201 – 37,000 18,201 – 37,000

32.5 37,001 – 87,000 37,001 – 90,000

37 87,001 – 180,000 90,001 – 180,000

45 >180,000 >180,000

There are also updates to Payroll Tax for Victoria and Western Australia. If there are changes made by other States and/or Territories after the release, these will be included in future upgrades.


Superannuation Change

There was a little used legislation where an employee’s salary sacrifice would reduce the Superannuation Guarantee contribution. The superannuation Guarantee contribution of 9.5% could be calculated on the reduced Salary. As shown below, there will be legislation that will stop this so the Superannuation Guarantee contributions are calculated on the employee’s full salary before the salary sacrifice is applied that comes into effect on July 1, 2018.

Existing

Figure: *Extract from ATO Website

The checkbox that appears on Employee Superannuation Pay Items on the Other Info tab in the Superannuation section as shown below will no longer appear.

*


Figure: Existing check box Deduct Salary Sacrifice from Super Guarantee


New

Figure: *Extract from ATO Website

*

Documents

MYOB Advanced People Payroll (AU) End of Financial Year ... · AccountRight™, MYOB AccountRight Standard™, MYOB AccountRight Plus™, MYOB AccountRight Premier™, ... 12 | MYOB