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Single Touch Payroll (STP)

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Ultimate Partner Kym__Yeoward
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Single Touch Payroll (STP)

For Forum users, here's a copy of my news email, sent to my clients this week:

 

"MYOB last week released AccountRight version 2017.2

 

It's an important update - so I'd like to mention some key features:

 

- Simpler BAS reporting:

   - There's now an easy option to merge or remove unused GST codes, following the Tax Office's recent

      launch of Simpler BAS reporting.

 

- Various Reporting enhancements, more Search options and numerous improvements & bug fixes:

    - for example, in Receive Payments, there's a new Advanced Search option, to help find open invoices fast

 

- Single Touch Payroll (STP) support:

This is the biggest new feature  -  it supports for preparing for the new Single Touch Payroll reporting system,
that the Tax Office is introducing from 1 July 2018, for businesses with 20 or more employees.

 

Before this, in April 2018 all  businesses will be required to count their employees as at 1 April 2018.
Note: This will count each employee as 1 person, even if they only work part-time - see this 

Guide to counting employees - for Single Touch Payroll

 

Those with 20 or more will need to move to an STP-capable payroll system by 1 July 2018,
although they can start earlier if they wish..

 

Smaller businesses  - with up to 19 staff - have an extra 12 months to prepare,
before they are required to use an STP-capable system from 1 July 2019
(again, they can start earlier if they wish)

 

In early 2018,I understand AccountRight will introduce STP Reporting.

- with an option for live links to be available by 1 July,

This will enable each pay run's summary, with gross wages & tax by employee, to be sent to the Tax Office each pay day, when the pay run is finalised.

 

This means from the start of the 2018-19 Payroll Year, businesses on STP will not be required to issue payment summaries and will no longer need to annual payment summary report (i.e. the Empdupe file).

 - that is, after the 2018 Payment Summaries have been issued, the 2018 Empdupe file has been lodged and the payroll year has been rolled-over to 2018-19.

 

- See MYOB's guide here - AccountRight - Single Touch Payroll reporting

- Also see these Tax Office guides for more information:

  - Streamlined Reporting - with Single Touch Payroll

  - Single Touch Payroll - Information for Employers

 

To help businesses prepare for the move to STP, two features have been added in  version 2017.2:

- A validation check for employee tax file numbers, when entered
  (a warning will show if it has been mistyped)

 

- A new field in each payroll Category item, called "STP Category"
  (currently it's set to "non-reportable")

 

Businesses wanting to use STP next year will first have to match each of their Payroll Category items,
to the Tax Office's corresponding STP reporting category (there's a drop-down list of these, in this field).

 

>> For those businesses wanting to prepare for STP now, MYOB have an online list,
      matching each Pay Category item to its' STP equivalent.

      See this link - STP Reporting - Tips for matching STP Categories

 

>> Doing this category matching now, will help save time early next year
     - when MYOB will be releasing a further update, that will include online STP Reporting.

 

For those businesses using "Classic" desktop AccountRight - Plus or Premier version 19.14  or Essentials:

- Please do the head count on 1 April 2018, as above

- AccountRight v. 19 users - I understand MYOB will be offering an online STP reporting link

- Essentials users -  You don't have to do anything for the moment., as Essentials will be upgraded in early

  2018 to support STP. "

 

I'm happy to answer any queries, help users through the move to STP

- and accept any corrections.

 

 Kym Yeoward CPA ACIS

Darwin

 

 

 

 

 

 

6 REPLIES
Contributing Cover User JAGCD
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Re: Single Touch Payroll (STP)

We have in place via enterprise agreemnt a system whereby if an employee is found to be at fault in a vehicle accident that they are responsible to pay the insurance excess.  We ususally do this by deducting a set amount each week from their pay in a deduction category.  In the past I have set up a separate deduction category to be shown on their paymetn summaries so that they can claim it as a work expense.  The STP categories suppplied in MYOB dont really cover this so my question is, am I able to create a new STP ctegory or are we stuck with what is already there and if that is the case should I just link it to gross paymetns to reduce his income?

Cheers

Ultimate Partner Kym__Yeoward
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Re: Single Touch Payroll (STP)

Hi @JAGCD - re your query, I've posted a copy in the ATO's Community Forum and asked them to respond promptly - see ATO Community

 

Currently, the only Deductions settings available in  the STP Pay Category drop-down list in version 2017.2 are:

- Union / Professional Association fees

- Workplace Giving

 

The ATO sets the items in the STP drop-down list - not MYOB

 

As soon as I have a reply from the ATO, I'll post it here.

Unfortunately as yet there's little info on "STP Category settings", when run an Internet search.

Have asked the ATO Forum team to look at this.

 

Kym  Yeoward CPA (Darwin)

 

cc @ronatbas and @GDay53 (experienced consultants)

Ultimate User gavin12345
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Re: Single Touch Payroll (STP)

Hi @JAGCD

 

There is a reason why only these 2 deduction fields appear on a Payment Summary and they are the only 2 allowed on a Payment Summary. As Single Touch is a substitute for the Payment Summary, my guess is there won't be a provision to treat the expense as something that must be reported to the ATO.

 

I would caution against deducting from the gross income paid - you are required to deduct PAYG from the gross (not net). You can't assume the expense will be deductible in the hands of the employee, (this depends on the circumstances) this is why this has to be completely outside the Payment Summary.

 

You can create and use a Payroll Category under Deductions - as you would for any other amounts deducted from their pay. This will appear on the payslips. 

 

At tax time, the employee would need to consult with their tax adviser to determine if and how much would be deductible.

 

Regards

Gavin

Ultimate Partner Kym__Yeoward
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Re: Single Touch Payroll (STP)

An update to my STP post of last November, for AccountRight version 19 users:

 

MYOB will NOT be offering an online STP reporting tool, for version 19 users.

 

Instead, those users who can are encouraged to move to AccountRight 2017.2 Online immediately, if they use the Payroll module and have more than 19 staff - as the ATO will require them to use Single Touch payroll software (STP) from 1 July 2018 (Employers with 19 or fewer staff have until 1 July 2019 to make the change).

 

For those version 19 users with 20 or more staff, who cannot currently move to version 2017.2 for technical reasons, the ATO has said they can have an extension until 31 May 2019 before they have to make the change.
The technical reasons cover features in version 19 that aren't yet in version 2017 - mainly the multi-currency feature (in the Premier and Enterprise editions, particularly "Trans Tasman" firms operating in both Australia and New Zealand), but also the negative inventory and multiple warehouse locations features (in Enterprise).

I understand MYOB will have most of these features in AR Premier 2018 or 2019, by that date.

 

Kym Yeoward, Darwin

 

 

Aletek
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Re: Single Touch Payroll (STP)

Is it definite that the upgrades available by the end of the extension will include multiple warehouse locations?  We need a solution that will offer this feature and STP.

Thanks,

Annette

Ultimate Partner Kym__Yeoward
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Re: Single Touch Payroll (STP)

Hi @JAGCD - here's the reply I've received today on the ATO Community Forum, from AmandaE (Forum Manager):

 

  • The deductions to be reported via STP are the same as the deductions that are currently required under Payment Summary and PSAR - namely, workplace giving and union fees.
    [PSAR = Payment Summary Annual Report - included in the annual EMPDUPE file lodged annually with the ATO]
  • The STP pay event does not require the disclosure of all deductions from payroll at this stage, but [STP categories for] these may be introduced, as STP is implemented by other Government agencies in the future.
  • The Business Implementation Guide and specifications for the pay event, stipulate for the payroll software developers, the fields that must be contained in the file and the business rules. No additional fields can be added to the file.

 In short, under the STP Payroll regime:

- You cannot assign a Payroll STP Category for these deductions
(as currently the ATO only allows STPs for Union Fees and Workplace Giving charity donations)

- Keep your "insurance excess"  wage deduction's STP category as "not reportable"

- Provide the staff affected with an annual letter that specifies each insurance excess recovery incident
  (employee name, date, vehicle & registration, incident description, insurance excess charged and pay  deductions made during the year). Give them this at the end of the financial year, as they may need to hand it to their tax agent.

 

The employees affected may be eligible to claim a tax deduction for these payments, under tax return item
D2 - Work-related Travel Expenses.  However I'm unsure whether the ATO would permit this, as these charges may not qualify for claiming by an employee as a tax deduction.

I suggest you write to the ATO n-o-w, requesting free Private Ruling on on this matter.

Normally these are issued within 28 days.

You can apply for a Private Ruling here

(where there's a PDF form you can download to your desktop and then open with the free Adobe Acrobat Reader)

 

For the 2017-18 year, and the 30 June Payment Summaries, stick to your current procedure.

 

Kym Yeoward CPA

Darwin

 

 

 

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