Single Touch Payroll – The Good, The Bad & The Opportunity

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STP The Good, The Bad The Opportunity
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Presenters
Deborah Thompson
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Housekeeping
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GovReports Leading PLS Innovator
Business/ Taxpayers
Australian Taxation Office
ASIC
BAS/Tax Practitioners Accountants
Corporate/ Listed Companies
State Revenue Office
Other Govt. Agencies
Investor
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Agenda

• ATO STP
• Good, Bad Opportunities
• GovReports and STP
• GovReports Solution IAM Ledger
• GovReports Lodgement

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ATO Single Touch Payroll
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STP Employers/Employees

• ATO Resource to explain STP for Employers and
  Employees
• Current version is still including 1 July 19 as
  start date for under 19 employees
• With a myGov account employees will be able to
  view YTD tax and super online
• myGov will provide the Payment summary to
  employees
• Tax information will be prefilled into tax
  preparation software

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What Single Touch Payroll means for Tax
Practitioners

1. Single Touch Payroll is the next step in payroll
   reporting.
2. Payroll compliance included in natural business
   practices
3. It changes how business reports employees
   payroll information
4. First stage started 1 July 2018 - employers with
   20 or more staff.
5. It is software based
6. No Lodgements via portal Lodgements available
   thru GovReports

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Extension of Single Touch Payroll

1. Legislation before parliament extends STP to all
   employers
2. Employers with under 20 staff will be required to
   report via STP
3. ATO will not force employers to purchase software
4. ATO asked developers for low cost solutions
5. Micro employers (1 to 4) will have options (e.g.
   allowing agents to report quarterly)
6. Exemptions may be available from ATO

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Start Reporting through STP

1. STP reports employees tax and super to ATO on or
   before each pay day
2. Send via STP-enabled payroll software
3. Employees view year-to-date information via MyGov
4. Employers report super liability and super funds
   will report payment of liability
5. STP replaces payment summaries and PSAR

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STP Process

• Check Employee Details (must have correct details
  to lodge)
• TFN
• Address
• Phone number
• Date of birth
• Employee ID (unique number)
• No Change to payroll timing (Pay Event)
• A PayEvent must contain at least one Employee
  record

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STP Process

• Information sent to ATO via Pay Event
• Gross Wages YTD
• Allowances YTD
• PAYGW YTD
• Superannuation accrued YTD

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STP Process

• STP lodgment Pay Event
• YTD Wages every Payrun
• Payroll categories matched to ATO
• Required to report on or prior to pay day.
• Micro employers may be lodging less frequently

• STP End of Year
• Advise ATO of Final Pay Event
• ATO send Payment Summaries to MyGov

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GovReports STP Solutions
To lodge ATO reports including STP - ATO
nomination is required. AUSkey is not
required.   ATO nomination can be done through
either ATO access manager or via
telephone.      If Tax or BAS intermediary is
lodging behalf of their client then clients
authority is required for their audit purposes.  
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STP Process

• Authorities
• The STP pay event is an approved form submitted
  to the Commissioner of Taxation, and requires the
  following each time it is lodged
• a declaration that the information contained in
  the approved form (the STP pay event or update
  event) is true and correct
• the declarer is authorised to lodge the approved
  form.

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STP Process

• Authorities
• If a registered agent reports through STP for an
  employer, they can obtain written authorisation
  to make this declaration through an annual
  agreement.
• Subject to eligibility criteria. Employer must
  not
• Have any overdue activity statement lodgements
• Have any outstanding debts, unless covered by a
  payment arrangement
• Currently be or have been the subject of ATO
  compliance activity for PAYG withholding within
  last 2 years
• Directors been subject to a Director Penalty
  Notice
• An authority must be reviewed and signed by an
  employer and their registered agent every
  12 months or any time there has been a
  significant change in the industrial relations,
  taxation or payroll process.

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What has been our Experience

• Good
• Streamlined Efficiency
• Natural Business Process
• ATOs current approach

• Bad
• Payroll not consistent
• Clients reticence/fear
• Doing the wrong thing
• Client fears loss of control
• Big change to IT (skill gap)
• Compliance costs

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Opportunities

• As Trusted Advisor
• help client overcome their fears through
  Education
• Show client
• the ease of adding compliance to their natural
  business process
• Without undue stress streamlining business
  efficiency .
• ATO estimates that
• 730,000 small business employ lt19
• 450,000 small business have 4 or less employees
• 300,000 small business are micro employers (1-4)
  not using any accounting software

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GovReports Single Touch Payroll
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GovReports Single Touch Payroll Solutions

• 1. GovReports STP compliance options for each pay
  cycle
• Data entry the employees and their pay details
  directly online to create and lodge payrun to
  ATO. Rollover option is available for repeat on
  each pay cycle.
• Upload Payrun in CSV file format or
• Payrun upload in XML and or other file formats
  will be added over time

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GovReports Single Touch Payroll Solutions

• Single Touch Payroll module is included in all
  Savvy and On-Demand packages.
• Savvy - Unlimited lodgements of STP and all
  compliance forms included in the professional
  packages
• On Demand - Low annual subscription fee with pay
  per lodgement.

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GovReports Option 2 Interactive Accounts Manager

• GovReports IAM is a standalone simple application
  with direct compliance lodgement to ATO.
• Account access to both Business Owner
  Accountants
• Data ownership - Business owner
• Subscription ownership- Either Accountant or
  Business Owner
• Accountants get 30 discount on retail package
• Super easy to use and quick to comply with STP
• Packages
• IAM STP Manual data entry of payroll details or
  upload of data in CSV
• IAM Business IAM STP plus ledger with ATO
  reports lodgements

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IAM - STP

• Payroll plus STP Lodgments
• 99 (inc GST) Annual Fee
• Both web mobile apps access are proposed
• Free trial available

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IAM - Business

• Sales, Purchase, Banking, Payroll Financial
  Reports
• Compliance reports Activity Statement, STP
  Tax Returns
• 149 (inc GST) Annual Fee
• Free trial available

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Interactive Accounts Manager - IAM
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IAM- Interactive Accounts Manager STP Solutions
for Clients, Tax BAS Agents

• Benefits of using IAM
• Secured cloud online application
• Streamline the process of reporting to the ATO
• User friendly interface
• Ledger Access

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Practitioners Access To STP via IAM Ledger
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Payroll in IAM

• Employee
• Add personal and contact details
• On boarding
• Payroll Events
• Pay run
• Employee Termination Payments
• Lump Sum Payments
• Payroll Payments

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Dashboard - IAM Business
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Payroll/STP in IAM

• Employee
• Add personal and contact details
• Onboarding

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STP List of Employees
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Add Employees

• Add Employee
• Add personal and contact details
• Employment Type Status
• Onboarding

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Employee Onboarding
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Employee Profile
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Payroll in IAM

• Payroll Events
• Pay run
• Employee Termination
• Lump Sum Payment
• Payroll Payments

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New PayRun

• Select Payroll
• Payroll Events
• Pay Run

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New PayRun

• Complete details of pay run income tax
  superannuation calculated

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Lump Sum and Termination Payments

• Select Employee
• Click on Payroll
• Choose correct payment type
• Complete Information as required

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Lump Sum Termination Payments

• Lump Sum
• A Unused AL/ALL, LSL accrued 16/8/78 to 17/8/93
• B Unused LSL prior 15/8/78
• D Redundancy tax free portion
• E back pay prior years
• Termination
• Complete Information as required

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Payslip
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IAM Business Basic Accounting Software

• Banking
• Bank Register bank, credit card cash accounts
• Bank Feeds rules import statements
• Sales
• Customers, items
• Create invoices, estimates, payment receipts
• Purchases
• Suppliers
• Purchases register, expenses, payments made
• Payroll
• Employees
• Payroll events, payments
• Accounts
• Chart of accounts, budget enteries
• General Journal
• Reports
• Over 30 standard reports

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Accounts
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Banking

• Set up Multiple bank accounts with Bank Feeds
• Create rules for automatic entry of feeds

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Sales

• Create Customers
• Create Items
• Create Invoices
• Create Receipts
• Create Adjustments

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GovReports lodgement STP
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STP Process in GovReports?
3 SELECT STP - PAYROLL EVENT FORM
2 SELECT CLIENT
7 LODGE STP - PAYROLL EVENT TO ATO
1 AGENT LOGIN
8 CONFIRMATION WITH LODGEMENT RECEIPT FROM ATO
5 REVIEW / VERIFY / EDIT DETAILS
6 SEND FOR DIGITAL AUTHORISATION (OPTIONAL)
4 SELECT ENTRY TYPE IMPORT OR MANUAL FILLING
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SELECT A CLIENT
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SELECT STP- PAYROLL EVENTS FORM
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CHOOSE ENTRY TYPE EITHER CSV/IAM/Reckon IMPORT
OR MANUAL FILLING
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Manual Entry PayRun

• Verify Employee Details
• Add Payroll Run dates
• Select Summary Payment Type
• As you select each type a section to add the
  amount appears
• Once completed Save

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EMPLOYEE Select Payroll Run Dates
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EMPLOYEE - Payrun Details
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EMPLOYEE - Payrun Details
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EMPLOYEE - Payrun Details
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EMPLOYEE - Payrun Details
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EMPLOYEE - Payrun Details
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LODGE STP- PAYROLL EVENT TO ATO
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Normal Process of Payevent
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LODGE STP- PAYROLL EVENT TO ATO
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CONFIRM WITH LODGMENT RECEIPT FROM ATO
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Final Pay Event
A Tick is all thats needed to signal Employee
completed for Year
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Opportunities

• Enhance your Practice Efficiency
• Increase client use of Software decrease your
  time spent on data entry
• Increase capacity for new clients by using
  GovReports lodgements IAM
• In transition clients can use Tax/BAS Agents for
  STP lodgements quarterly

• As Trusted Advisor
• help client overcome their fears through
  Education
• Show client
• the ease of adding compliance to their natural
  business process
• Without undue stress streamlining business
  efficiency
• ATO estimate that
• 730,000 small business employ lt19
• 450,000 small business have 4 or less employees
• 300,000 small business are micro employers (1-4)
  not using any accounting software

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Thank You !!!
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