Session 2 Pres 1 Practical Guidance - Viostream€¦ · By 1 July 2018 (unless deferral in place)...

Practical Guidance

Presented by:Michael Karavas Single Touch Payroll Design Lead - Australian Taxation Office

Angela Lehmann Single Touch Payroll Assistant Director Design - Australian Taxation Office4 May 2018

Contents

› Linking as an STP agent

› STP pay day reporting

› Authorisations & Declarations

› Corrections Framework

› End of financial year

› Transitioning into STP

› How the ATO will display the data

› Employees

› Super reporting

› Activity Statements

› Myth Busting

UNCLASSIFIED – Australian Taxation Office 2

Linking to the STP role

• Cannot lodge an approved form on behalf of an employer unless you are a registered agent

• New STP agent role – if you are not an agent already linked to an existing client or account

• ATO has a tool to create link for you if you have multiple clients to link to

• Payroll services only – do not create link to client via Portals at this stage

• Can only be one registered agent at client level, one registered agent at account level and

one registered agent at STP role – can all be different

Linking as an STP role


Linking as an STP agent


STP pay day reporting

Pay Event – on or before pay date


Pay Event – employee information is year-to-date


Pay Event – Out-of-cycle pay runs

• Can be reported as a pay event

• Can be reported in the next regular pay event


Authorisations and Declarations

“information in the document is true and correct.”


“authorised to lodge”



• Per submission

• Has to be in writing

• Appropriate delegation has to be in place (internal process)

• Standing authority

• Validation against Registered Agent Number


Corrections Framework

Activity Statements

Where amounts pre-filled at labels W1 and W2 in activity statements do not reflect payroll

records for the relevant activity statement period employers will need to fix those amounts

when they complete their activity statement.

*pre-filled activity statements only need to be adjusted if the amount is over the materiality threshold (Thresholds TBC)

� Must report within 14 days of detection

� Report at next pay cycle

� Report as an ‘update event’

Large withholders follow existing processes.

Correcting a payroll event report

14UNCLASSIFIED – Australian Taxation Office

You should provide an update event for each financial year an

overpayment occurred in.

If the overpayment relates to a payment you did not report through

Single Touch Payroll you should provide the worker with an amended

payment summary and an amended payment summary annual report to

us.

What do if you do if discover an overpayment in a previous financial year in a later year;

� Submit an update event

� Advise us the amounts the employee should have received in the relevant financial year

� Do not adjust the amount of tax withheld

Overpayment relating to a previous financial year


A full file replacement

� May only be used to replace the latest pay event

� Must contain the submission identifier of the pay event to be replaced

� Cannot be submitted if any employee information has subsequently been

changed in a payroll or update event

� Cannot replace an update event – a new update event should be submitted

You shouldn’t use a full file replacement for corrections

A full file replacement gives you the ability to replace the latest pay event file you sent to us in

error, or contains significant corrupt data.

Full file replacement


End of Financial Year

› How will EOFY be different?

› How and when do we add RESC and RFBA information?

› Un-finalising data

› Amending finalisation

› Due Date

EOFY and finalising data


Employers will be exempt from providing payment summaries where information has been

reported though Single Touch Payroll.

The information will be displayed as 'tax

ready‘ for employees in ATO online services

accessed through myGov. The information

will be also be pre-filled in income tax

returns.

Finalisation Declaration Tax Ready

Employers make a finalisation declaration by

providing a finalisation indicator for an

employee as part of their Single Touch

Payroll reporting.

RESC and RFBA can be reported at any time up to the due date for finalisation

Employers will need to provide a payment summary for any payments not reported and finalised

through Single Touch Payroll by the due date.

End of year finalisation


Finalisation - Tax Ready


Amending finalisation

Employers will need to provide a payment summary for any payments not reported and finalised through

Single Touch Payroll.

Un-finalising

If an employer identifies the need to amend details after making a

finalisation they submit an update event and change the final event

indicator to FALSE.

AmendmentsBy lodging another pay event or update event for a finalised employee

with a final indicator, this overrides the last finalisation. This is akin to

the payment summary amendment process.

Finalised information reported through Single Touch Payroll can be

amended up to five years after the end of financial year.


Due Dates

Transitional due dates

• Financial year ended 30 June 2018 – 14 August 2018

• Financial year ended 30 June 2019 – 31 July 2019

• Financial year ended 30 June 2020 – 14 July 2020


Transitioning into STP

By 1 July 2018 (unless deferral in place)

Start anytime during a year

Report as a “pay event” or an ‘update event’

(Bring in YTD Values)

12 month transition period

Starting STP – Transition


Foreign Employment & Shadow Payroll

Insolvency Practitioners

Portable Long Service Leave Boards

Special considerations – employer type


How the ATO will display the data

How the data will be used

Information will be prefilled W1 and W2 Labels

*as of 1 July 2019

Pay event submission

Employees will be able to view their tax and super

information

Sharing of data with other Commonwealth agencies

Information reported through STP will be displayed

in the portals

Information will be pre-filled into myTax

Information reported through Single Touch Payroll will be available for employees, employers and their

agents through various platforms


BAS/TA

Portals

Business

Portal

Employer

What you will see – Agent for employer


What you will see – Agent for employee


What you will see – Agent for employer


Employees

Changes for employees

We understand that no longer receiving a payment summary will be a big change for employees.

Employers - can begin having conversations with their employees about the

changes coming once they start reporting through STP

ATO - will provide employers with information and resources that they can use to

pass on to their employees about these changes and what they mean for them

ATO - will provide assistance to employees who need support through the ATO’s

ongoing communication strategies such as tax time communications

Employees - there is plenty of help and support online (e.g. through my.gov.au,

youTube etc) for Australians to open a myGov account and instructions on how to

use it.


Viewing payment details

When employers report through Single Touch Payroll and make the payment, the employees will

be able to see their year-to-date tax withheld in ATO online.

To access the information they will need to navigate to ‘My details’

ATO online


Employment Income Statement


Super Reporting

AT

O

Matched records will be allocated to accounts.

SB

R

Member Account Transaction Report Data

> Employer information> Employee information

> Superannuation contribution

Employer pays their staff’s superannuation using their existing SuperStream solution

Employee data will be visible via ATO online

services

Matched STP and SuperStream data will be used to identify were an employer may be having

difficulty meeting their SG obligation

> BMS> Clearing house> Fund portal

Fund

Member Account Transaction Report

> Payment to fund> Contribution transaction report> Retain existing error processes

Tailored messages to the employer:

e.g. reminder to pay

Member Account Transaction Service (MATS)

(Transaction Report for ATO)

Superannuation Reporting


• Superannuation liability and/or Ordinary Times Earnings (OTE)

• Superannuation liability disclosure – greater than 9.5%

• Under superannuation guarantee thresholds

• Defined benefit funds

• SuperStream reporting & payment obligations do not change

• SGC process remains the same for missed or late payment

Understanding super reporting


• Salary sacrifice – new calculation for Superannuation Guarantee

• STP reporting

• Defined benefits funds

• APRA v SMSF

• Super liability disclosure – greater than 9.5%

Proposed legislative changes


Activity Statements

BAS pre-fill will commence 1 July 2019 (small & medium withholders)

• W1 & W2 pre-filled

• Corrections can be made for any variances

• W1 label removed for large withholders

• Opening & closing balances

• Raising PAYGW liabilities in absence of Activity Statements

Reporting enhancements – Activity Statements


Myth Busting

Clearing a few things up

� Existing payment due dates for both PAYG Withholding and SG remain

� SuperStream obligations still must be met for employee superannuation contribution

payments (including Small Business Superannuation Clearing House).

� Existing Super Guarantee Charge still applies if you have not paid your employees

superannuation contributions on time and statements must still be lodged.

� STP reporting cannot be submitted via the Tax/BAS agent portals or the Clearing House

� No blanket deferral for commencement of STP


Session 2 Pres 1 Practical Guidance - Viostream€¦ · By 1 July 2018 (unless deferral in place)...

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Transcript of Session 2 Pres 1 Practical Guidance - Viostream€¦ · By 1 July 2018 (unless deferral in place)...