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Your Checklist mentions that an employee must have a MyGov account.
Will STP within MYOB ie reporting a payroll event not work if an employee does not have a MyGov?
I do understand that under STP a Payment Summary will not be issued and an employee will access this information from MyGov. I also understand that an employee cannot do a Tax Return until the employer advises the ATO that Payroll for the year is finalised resulting in prefilling of the employees FY payroll.
My feelings are that STP will be a poor/negative experience for small business owners.
Why does the ATO require same day reporting when they have a work timeframe of 28 days?
My understanding is that it was recommended to the ATO that STP for small business be reported at the time of entry mostly monthly if PAYG-W is greater than $25,000 in a year.
.Weekly reporting to the ATO multiplies the effort in reporting to the ATO by 4.333.
I do not see the ATO collecting unpaid SG on a weekly basis.
All the benefits of STP may well be achieved if reporting was at the time of entry into MYOB.
Monthly reporting to the ATO at time of entry would require update of computer software (so MYOB wins) but the cost/effort to the small business owner would reduce substantially.
Information would then align with payment cycles and the lead time allowed within the ATO.
I strongly believe that SG should be paid monthly not quarterly especially if PAYG - W is remitted monthly.
Hi @DuncanS - my understanding is that for organisations on Single Touch Payroll (i.e. those with 20 or more employees) from 1 July 2018, all employees with an active payroll status, will need their own MyGov account.
You might like to post a similar query on the ATO's Community Forum.
Kym Y, Darwin
It would make sense given that Payment Summaries will not be issued and MyGov would be required for an employee to receive yearly payroll details.
What happens under STP to Directors where a Payment Summary might be issued at the time of preparing the Tax Return (Closely Held Concessions) up to 11 months after the end of a FY?
Many Tax Agents pay a Directors Fee (I do not) - is this a Payroll event?
I did watch the ATO webinar late in 2017 with Matthew Addison and Michael Caravan, Amanda Gascoyne and others but these issues appear not to be covered.
I understand there are some 800,000 employers in Australia of which some 80,000 have more than 20 employees.
If the reason for STP applying to small employers is the 'Super Gap', maybe payment of SG Super should be reported as part of a BAS.
I foresee Same Day Reporting for small employers being an administrative nightmare.
Does a employer pay staff using Internet Banking say at 6pm then email a BAS Agent/Bookkeeper to tell them to do a payrun and advise the ATO. As you would know, an Agent cannot lodge without client consent - i foresee business owners/Agents working well into the night.
At the MYOB Sydney conference in September 2017, MYOB presented on STP.
My feedback was that none of my clients are remotely interested in doing payroll in MYOB.
I strongly believe that monthly/quarterly reporting by small businesses is sufficient.
I understand that the ATO has consulted widely - have these issues been addressed?
Hi @DuncanS - see:
(particularly applies to family businesses, such as farmers)
I've also emailed a copy of your query to MYOB Research.
Kym Yeoward, Darwin.
February - last edited February
Many Tax Agents (including myself) use Closely Held Concessions for their Clients.
This means the Payment Summary/ies and Summary Statement for the Director/Associate can be prepared at the time of preparing a Tax Return (an amendment to BAS Q4 would be required to enable a FY BAS reconciliation).
I recall in watching the ATO that all employers must finalise STP for a FY by 14 July.
Agents currently have till 30 September to prepare a PAYG Summary Statement if employees include other than the Director/Associate.
My opinion is that a STP 14 July cutoff date will impose administration difficulties on small business and agents.
It is often necessary for Investment Income for a FY to be summarised before issuing a Director's Payment Summary.
Once again, what have those on the Consultative Groups with the ATO been discussing?
The ATO may only be focused on employers with more than 20 employers, at this time, as their implementation date is one year earlier.
did you ever get an anwer to your question about Account Right V19.14 as we are using the same.
February - last edited February
From a recent briefing at the Incite Roadshow, I understand:
- STP will NOT be coming to version 19.
- AccountRight 2018.1 - due soon - will include final part of the STP software
(the first part was released in v. 2017.2 late last year - this added the ability to match Pay Categories with their STP equivalents, as defined by the ATO (they're similar to the fields on a Payment Summary)).
- Those v. 19 users with 20 or more active employees on 1 April (including part-timers) will need to switch to STP-enabled payroll software - e.g. AR 2018.1 (coming soon) - by 1 July 2018. If they have many Payroll Categories, they can start work now, by upgrading to 2017.2 and matching them with their STP equivalents.
- Those with 19 or fewer staff (including part-timers) can wait until 1 July 2019 until they have to move to STP.
(they can move to STP voluntarily before then, if they wish).
- MYOB will apply to the ATO for a software developers extension (allowed under the STP legislarion), to cover users of version 19 and prior versions versions, who currently can't upgrade to the 2017 or 2018 versions, for technical reasons related to their software. They could then delay moving to STP until they are technically able to.
The main reason would be the current lack of a multi-currency feature in AR 2017 (AR Live), which means multi-currency users have to stay with v. 19 Premier or Enterprise, until this feature is added to AR Live later this year.
There would then be a reasonable additional period for installation - so the exemption period would probably be until 30 June 2019 (if the ATO approves it).
I've attached an STP Planning Checklist, which may help.
The main thing is:
- Those with 20 or more staff working (at 1 April) need to start planning NOW, for the move to STP pays from 1 July (hopefully they're already working on it).
Please note - these comments are my own and do not represent any views from MYOB.
I apologise in advance, for any possible errors or mis-statements.
Kym Yeoward, Darwin
One more quetion, do you know if this applies to the MAC networking addition, as I have a client using it.
Hi @ALA408 - as I understand, STP will NOT be coming to AccountEdge by 1 July 2018.
Similar situation to AR version 19.
Please contact MYOB for further info.
Kym Yeoward, Darwin