Single Touch Payroll (STP)

Community Manager Suja_P
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Single Touch Payroll (STP)

Hi all,

 

Most of you who deal with payroll would be aware that Single Touch Payroll is coming in 2018. It will bring with it reporting changes and opportunities to gain efficiencies, especially around the end of financial year time crunch.

 

Single Touch Payroll (STP) is a government initiative to simplify business-reporting obligations. Businesses will need to electronically report their employees' payroll information to the ATO at the time of paying their employees.

 

STP will be mandatory from 1 July 2018 for businesses with 20 or more employees. 

 

For those employers that have 19 or less employees there is no mandatory requirement to use an STP solution, however, solutions will be designed to allow these employers to take up an STP solution on a voluntary basis.

 

MYOB is working closely with the ATO to ensure our products keep all of our clients compliant. 

 

We have set up a dedicated web page – Single Touch Payroll with FAQs on the topic. All relevant updates relating to your respective MYOB products will be posted on this page.

 

Here are some other links on the topic that you may find informative:

 

Should you have any queries on this topic please feel free to post them as replies to this post. 


Kind regards,

Suja Pillai
Social Support and Community Manager
MYOB Australia Pty Ltd

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Re: Single Touch Payroll (STP)

@Suja_P

 

Suja,

 

I had two chats with Sally Higgs from MYOB who gave the talk on Single Touch Payroll at Partner Connect in Sydney on 04 September 2017. There was a mismatch of ideas.

 

The Press Release from The Hon Kelly O'Dwyer MP Minister for Revenue and Financial Services on 29 August 2017 states Single Touch Payroll (STP) will be compulsory for smaller employers from 01 July 2019.

 

Ms O'Dwyer states in her press release "This will reduce the regulatory burden on business and transform compliance by aligning payroll functions with regular reporting of taxation and superannuation obligations".

 

The Government had the opportunity of regulating monthly payment of Super Guarantee (SG) but I understand that quarterly payments still apply.

 

How can there be alignment when the government wants same day reporting of payroll and SG is paid quarterly?

 

Many of my clients lodge a monthly IAS and pay PAYG - W monthly within 21 days of the end of the month.

I understand the cycle of paying PAYG - W will not change.

Once again, how can there be alignment when the government wants same day payroll reporting and PAYG - W is paid monthly.

 

I am at a total loss where a statement is made that STP will reduce regulatory burden on businesses.

The non-issuance of payment summaries is a good idea and reduces paperwork but the extra burden of reporting to the ATO on the day of a pay run may well be extremely difficult for a small business.

 

Larger businesses with full time accounting staff or a business where a BAS Agent attends weekly to prepare payroll will conceivably not be impacted.

 

There are many businesses with less than 10 staff where monthly management reporting and monthly reporting/payment of PAYG-W has served all concerned very well.

 

A reasonable Tax/BAS Agent has much experience in the substandard nature of the ATO computer systems.

Even if the ATO had a high standard of computer systems, what is the purpose of same day payroll reporting if the ATO has to wait until a payment date has passed before any collection of unpaid PAYG - W can be undertaken and has to wait until 28 days after the end of a quarter before any collection of unpaid Super can be undertaken.

 

The solutions available from MYOB to solve the unnecessary requirement of small business to report payroll to the ATO on the day of payment have not been helpful. One suggestion was to have the Director of a small business process the payroll and report to the ATO - this method is fraught with danger 

I spoke with Quickbooks about STP and they said they would work with BAS Agents to automate payroll so as to provide a solution to their clients and reduce the administrative burden of STP.

 

The basis of SuperStream was beneficial and there have been ongoing time savings to small business.

The Government in the above Press Release advises that super funds will report contributions at least monthly - this is somewhat useless if the payment cycle of SG is quarterly.

 

I understand that smaller industry bodies have advised the government of the shortfalls of same day payroll reporting - one can only hope the Government listens.

 

Duncan Smith

Duncan Smith
Business Advice + Tax
www.businessadviceplustax.com.au
Helping business owners build a better business since 1998
E expressgst@optusnet.com.au T 02 9904 3672 7 days
Experienced Cover User BronwynHamster
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Re: Single Touch Payroll (STP)

Hi Suju, I have just got off the phone to MYOB regarding Premier Classic not being upgraded to deal with the ATO's Single Touch Payroll. As Premier Live Category reporting does not, has not worked properly since institution of Live AND MYOB has known about this fault in the program since 2015, what does MYOB expect those Companies who rely heavily on Category reporting suggest? Going to alternative software that does address bugs in their software in a timely fashion. One of my clients also deals in multi-currency which I am told developers are working on at the moment. How can we be assured this will work? Finally we paid MYOB several hundred dollars for extra files back when we owned the software. I have been told today there would be no cost at transferring to the live platform, but another question is for how long? MYOB Live charges on a file basis and at the last count one of my Clients has at least 12 Company files. This currently costs us $1400 odd a year. Converting to Live means we would be paying approx. $9,800 per annum for software that just doesn't measure up to the cost. Kind regards, Bronwyn

Community Manager Suja_P
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Re: Single Touch Payroll (STP)

Hi Bronwyn,

 

Thank you for your post.

 

We are working with the ATO to ensure that our products keep our clients compliant. Our current focus is to ensure that Single Touch Payroll (STP) functionality is delivered on our online products – AccountRight Live and MYOB Essentials in a timely manner.

 

That said, we understand that due to various reasons, some of our clients are not ready / able to upgrade to AccountRight Live yet. We are working closely with the ATO and reviewing options to ensure that all clients are able to access an STP solution.

 

Also, I confirm that there will be no additional cost to move your files from classic AccountRight to the latest version of AccountRight Live that you are entitled to. Additional costs will only apply depending on the number of files that you choose to activate Live Services on.

 

Do let us know if you have any further queries.


Kind regards,

Suja Pillai
Social Support and Community Manager
MYOB Australia Pty Ltd

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Re: Single Touch Payroll (STP)

@Suja_P @BronwynHamster

 

Suja,

 

There is some talk that the ATO may exempt some micro businesses.

Sally Higgs of MYOB mentioned this to me at the Sydney Roadshow in September.

 

One can only hope that the ATO acts quickly on advising of exemptions.

 

I would be particularly annoyed if I was a business owner and MYOB made me upgrade at a cost/inconvenience when/if the ATO subsequently gave my business an exemption.

 

In my view, Single Touch Payroll and in particular Same Day Reporting causes a cost and inconvenience to small business for little benefit.

Am I missing the benefits that are meant to follow to small business owners?

 

As I have mentioned before, any business that relies on regulatory change to impact customer behaviour has in my view a poor business model. Business should be about meeting and improving customer expectations not forcing cost and inconvenience on customers.

 

Duncan

Duncan Smith
Business Advice + Tax
www.businessadviceplustax.com.au
Helping business owners build a better business since 1998
E expressgst@optusnet.com.au T 02 9904 3672 7 days
Experienced Partner Elizabeth_3195
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Re: Single Touch Payroll (STP)

Hello Suja

 

My Account Manager is Tom Gavens and he is aware that a reasonable number of my clients are still on Enterprise - I would like to assist with some testing of STP when you are looking for volunteers.  I have two clients who are interested in testing.

 

REgards

Elizabeth Haverfield

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Community Manager Suja_P
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Re: Single Touch Payroll (STP)

Hi @Elizabeth_3195,

 

Thank you for your interest in this. I have passed on your information to the team.


Kind regards,

Suja Pillai
Social Support and Community Manager
MYOB Australia Pty Ltd

MFAA
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Re: Single Touch Payroll (STP)

Will Accountright Premier v19.14 be included and ready for STP?

MYOB Moderator Neil_M
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Re: Single Touch Payroll (STP)

Hi @MFAA

 

Welcome to the MYOB Community Forum, I hope you find it a great resource.

 

As @Suja_P mentions in her post above, our current focus is to bring a STP solution to both AccountRight Live and MYOB Essentials. Additionally, our team is also working with the ATO to ensure that all clients will have access to an STP solution.

 

If you have an active support agreement against your AccountRight v19 product, then you can upgrade to AccountRight 201X.X at any time. You can do this by downloading AccountRight 201X.X from my.MYOB.

 

Do let us know if you have any further questions



Regards
Neil
MYOB Client Support
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Re: Single Touch Payroll (STP)

As asked what are the plans for AccountRight v19.14?

 

Regards

James

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