STP - Payroll Categories

[ThirdScreen]

Should the payroll categories for Salary Sacrifice and pre tax amounts for Novated Leases be created under wages for STP purposes?

[Neil_M]

Hi @ThirdScreen

If you are unsure of which STP category a specific wage category falls under, then I recommend checking with your Accountant as they will be able to advise you on the best STP category to use for that specific wage category.

That being said some of our great forum partners, such as @Kym__Yeoward , may have their own thoughts on the best STP category to use.  

[Kym__Yeoward]

Hi @ThirdScreen -  just a note, I notice you're in New Zealand..
Single Touch Payroll (STP) only applies in Australia. 

For information about any planned developments in New Zealand, you would need to contact

Inland Revenue - New Zealand  -  Te Tari Taake

Basically, under Australia's new STP system, the ATO Reporting Categories are essentially the same as those on the annual Payment Summary issued each employee and the PSAR (Payment Summary Annual Report (automatically included in the annual EMPDUPE file)).

Deductions 

The only deductions to be reported via STP are those that are required to go on the Payment Summary

- Union Fees

- Workplace Giving (charity donations via a payroll deduction)

Superannuation salary sacrifice - currently shown on the Payment Summary s RESC
(Reportable Employer Superannuation Contributions) will need to be reported

- see the Payroll Categories \ Superannuation tab and look under the ATO Reporting Category for RESC

Salary Sacrifice deductions - including those for Novated Lease payments:

- These do not need to be linked to an ATO Reporting Category

- However the ATO has said "you may choose to include ... [annual] reportable fringe benefit amounts (RFBA) ...

  in your STP reporting (by 14 July)". See the Note below.

-I anticipate MYOB will include an "RFBA Reporting" tab, in the final stage of the STP software release
 (probably version 2018.2

To quote from a recent reply from an ATO officer on the ATO Community Forum :

"The STP pay event does not require the disclosure of all deductions from payroll at this stage,

but may be introduced as STP is implemented by other Government agencies in the future."

For more info on STP see:

ATO web page - Single Touch Payroll

ATO web guide - Report through Single Touch Payroll

ATO web guide - Get ready for Single Touch Payroll

ATO web guide - Single Touch Payroll - Employers Factsheet

ATO web guide - What you need to report through STP (and what you don't need to report)

I'm afraid the STP scene is rapidly developing for both software developers and the ATO.

Some of the rarely used aspects - such as reporting fringe benefit amounts - are still under development,

partly because the Tax Office have only recently finalised their guidelines.

Keep checking this Forum and the ATO Forum, for STP news.

MYOB has a STP Payroll page here 

They will also shortly provide STP training in Australia  - including online webinars.

Kym Yeoward

Darwin

 Note on ATO RFBA reporting, via STP:

From the ATO web guide - What you need to report through Single Touch Payroll

Voluntary reporting

You may choose to include certain withholding payments in your Single Touch Payroll reports.

These are not mandatory.

You can also choose to include reportable employer superannuation contributions (RESC) and reportable fringe benefit amount (RFBA) for your employees. If you choose to include these amounts in a report by 14 July in the next financial year you are not obliged to give payment summaries and a payment summary annual report to the Commissioner.

>> If you choose not to report these amounts through Single Touch Payroll, you will be required to give payment summaries to your employees and a payment summary annual report to the Commissioner covering these amounts.

[Kym__Yeoward]

I've recently raised this query with the ATO's tax software developeers enquiry service:

STP Payroll - Problems identified for organisations providing salary sacrifice benefits (other than superannuation):

- Reportable Fringe Benefit Amount (RFBA) reporting under Single Touch Payroll (STP)

- Also, matching payroll salary sacrifice payments, to an STP reporting category, in payroll accounting programs

(for sal sac payments other than salary sacrifice super).

Non-profit PBI users of MYOB AccountRight 2018.1 are reporting on the MYOB Community Forum, that they are having trouble doing this matching,

as there don't seem to be STP salary sacrifice deduction reporting categories, to cross-match to their current payroll categories.

Can you have a look at the queries and comments on page 11 of the Single Touch Payroll (STP) discussion in the AccountRight\Staffing and Payroll section of the MYOB Community Forum ?

In particular, could we have some guidelines fast, as non-profit PBIs are now starting to match their pay categories to STP

(e.g. Aboriginal medical services).

Whilst these non-superannuation salary sacrifice benefits have previously only been reported annually (on the payment summary),

they are an important part of the weekly or fortnightly payroll process for non-profit organisations.

Typically their payroll entry will be:

Nurse J. Brown

Gross Salary                                                 $uuuuu

Less Salary Sacrifice Deduction                   $vvvvvv   (currently there’s no STP category for this item)
Taxable Salary                                             $wwww
Tax Deducted                                               $xxxxx
Less Salary Deductions                                $yyyyy
Net Salary Payable                                      $zzzzz           

Are Salary Sacrifice Deductions non-reportable, under STP ?

If so,  could we have a clear STP Category, to help pay office staff to correctly code them

- such as Salary Sacrifice (not reportable)

If Salary Sacrifice is  reportable under STP, could we have two codes:

- Salary Sacrifice (for RFB)

- Salary Sacrifice (non-RFB)

Kym Yeoward CPA

MYOB CC

Darwin

31 Mar 2018

See this Support Note - Assigning ATO Categories for STP Reporting

[CloudMindAcc]

Following

[ADonald]

Hi, 

Did you get a reply for your query?

I work for a not for profit orgaisation also and am not sure how to categorise.

[RobbH]

Following.

Any feedback from the ATO yet?

[Kym__Yeoward]

Hi @ADonald - see this link reply from the A TO

Kym Y

P.S. My apology for the technical jargon. - clear as mud. We need more work on the practical info for pay office staff.