Payroll payments

Hi there SDesilva,

To proceed with transferring the employee from Company A to Company B, you'll need to finalise them using Company A before setting them as new employees in Company B. If all the payroll data should be reported as a whole, I'd suggest going to the employee card in Company A and changing the YTD Pay History data to 0, then recording a $0 pay to update ATO's records. Then set up the employees in the Company B file and enter all the previous payroll figures in the employee card Pay History section, so the whole year's payroll figures will be sent to ATO in the new file. It's best to speak to your accountant regarding the reporting requirements and best setup for your business situation.

With the way to connect to ATO for STP using Company B, you'll need to set up STP and can check out this link for more information. Lastly, you can import then export the employees card information.

Cheers,

Doreen

Hi Doreen,

Thank you for the quick response. 

Say there are about 25 employees in this situation. They are in Company A until Jan '25. From Feb '25 onwards they are to be in Co. B. So understand that I need to finalise them in Co. A and inform ATO via STP.

Then start paying them from Co. B, with historical data $0.00 because there is no pay from Co. B previously. They are starting under a new agreement, but with their entitlements transferred from Co. A to Co. B. So I need to enter those entitlements as opening balances, correct?

You mentioned "set up the employees in Co. B" - does this mean I have to create new cards manually for each employee in Co.B? they have different start dates, salaries, bank accounts, super etc. the whole works. That's going to be painful, is there an easy way to transfer that data from Co. A to Co. B? 

Thank you

Shanthi

Recommend seek advice, as the employee is moving from one abn to another, you need to terminate from Company A as a transfer.

Dear Doreen, Genreve & ChrisMc, 

Thank you all for the valuable advice. 

Could you also please let me know the procedure for the new company B to register for STP. Is it the same Software ID that we are currently using. We did this so long ago that I don't recall how we did it.    

Thank you

Shanthi

Hi SDesilva,

Sure. Here's a link on how you can set up the new company B for STP. Also, since it's a new company, it's a different Software ID. It's best to notify the ATO of the new Software ID.

Cheers,

Doreen

Thank you Doreen,

Do we get a new software ID from MYOB, if the new company continues to use MYOB?

Thank you

Shanthi

Hi SDesilva, 

If the new company continues to use MYOB, it will get a new software ID specific to its ABN. This is essential for linking its company file to the ATO for STP reporting. You can read more about this here.

Regards,
Genreve

Hi Genreve,

Thank you for your reply. After setting up the employees in the new Company B, how do we register this new Company B with the ATO for STP via MYOB? 

New Co. B has new name and new ABN

Thank you

Shanthi

Hi SDesilva,

Once you've set up the new Company B, you just need to set up Single Touch Payroll (STP) in MYOB. Here's how:

• Generate Software ID: In MYOB, generate a software ID for the new company. This can be done on the SBR Registration tab of the Payroll Preferences screen.
• Register Software ID with ATO: Register the generated software ID with the ATO. You can do this by calling the ATO on 1300 85 22 32 or using the ATO's Access Manager website to update and assign the software ID to your business.
• Set up STP Reporting. See this link for the detailed instruction.

After these steps, you'll be ready to report payroll data to the ATO via STP for the new Company B.

Cheers,

Shella