Single Touch Payroll STP: Finalisation

@perthsparky if you are using SingleTouch.com.au to lodge STP data, then you do STP finalisation directly on their website. The Queensland Revenue Office released their public https://bookkeeping-reviews.com/ ruling on the 22nd of December regarding payroll tax on medical cent… If it isn’t already, you’ll be prompted to put your company file online before moving to STP Phase 2.

• Make a note of any closely held employees or foreign employees as these might be reported on separately.
• But by taking the time to prepare for your STP 2 upgrade now, you’ll be setting yourself up for a seamless transition on July 1.
• As part of STP Phase 2, the ATO has new regulations around the disaggregation of gross income, so it’s important to ensure that pay categories are classified as per ATO requirements.
• Employees benefit from Single Touch Payroll software by having payslips sent to them immediately once they’re paid, and having clear visibility as to how their pay was calculated.
• Depending on the amount that was overpaid, the repayment is typically deducted from one or more Regular Pay Runs OR the payee may agree to return the funds.

Employees will have access to their to their information online via my.gov.au, and the Tax Office will also use the data to pre-load information for employees’ tax returns. More than one employee but fewer than all employees that have been paid in the tax year, you must create and lodge one submission for each applicable employee. Any entry in the Date field does not determine which payroll data the system includes in the submission. When using submission type F – Fix YTD, the system includes all YTD amounts paid since 1 July .

Report

For assistance in resolving this scenario, please refer to Correct an Underpayment. One or more Payees have been physically paid the correct amount, however, what was reported is incorrect. When expanded it provides a list of search options that will switch the search inputs to match the current selection. If STP was not set up for that year you can still mail paper copies of payment summaries to the ATO. You can also contact SingleTouch.com.au and they will email you a three page instruction document how to complete it within their website. You have to change a setting from “period” to “year end” plus do other actions.

From 1 July 2021 closely held employees must be reported through STP. Until 30 June 2021 small employees were not compelled to report closely held employee payments through STP. Under the first STP phase the Tax Office receives payroll data including gross amount of wages, PAYG withholdings and superannuation information. Stp And Finalisation Staff can view their YTD figures through their myGov account. After the ATO has received and processed your organisation’s finalisation declaration, a staff member’s YTD amounts are replicated in the pre-fill information for their tax return. Now it’s time to start preparing for the next financial year!

Single Touch Payroll Business Implementation Guide

If your business started STP reporting in the 2018–19 financial year, you have until 31 July 2019 to make the finalisation declaration. The sooner you finalise all employee records reported through STP, the sooner it will display as ‘Tax ready’ for your employees. When you lodge this ‘Fix YTD’ e-file, the ATO finalises the employees’ income and withholdings information for the year and makes the information available to the employee. Providing the finalisation declaration for STP-reported information in this manner removes your obligation as an employer to provide your employees with payment summaries in relation to the STP reported information. This makes it easier for employers, employees and tax practitioners to securely access important salary, super and tax information at any time – and especially at tax time – through myGov and ATO online services.

• One free option is the Reckon STP app – we like it because 1) it’s free, and 2) it gives micro business owners the convenience to manage and track their STP obligations anywhere, any time.
• There are a number of forms, typically required on commencement of employment, which can be completed electronically, pre-filled with ATO-held information.
• Rather than focus on the Income Tax Return classification of assessable income, the data that is to be reported in STP Phase 2 is more aligned to the way the different payment types are categorised in the payroll systems.
• A minimum pre-requisite of applying PUM Image 40 via PUM methodology will ensure you are current with all the required prerequisites for STP Phase 2.

There is a product register for complying software solutions here. The list can be filter by price, number of employees and other factors. Micro employers are those with 1 to 4 employees and were able to report quarterly for 2 years via a registered agent. Expanded payroll transaction reporting commences 1 January 2022. Allowances – NB if processed correctly, Ministers’ usual Allowances should NOT appear here. Ministers may have an allowance amount in this report if they received any JobKeeper top-up amounts.

One or more Payees have not paid, despite working this pay period

The process and procedure for implementing STP by a business will therefore rely primarily on its payroll software, and any support available from the chosen software provider. From 1 July 2021 this exemption ended, and small employers need to report closely held payee information. The Tax Office has advised that “micro employers” may report quarterly for the first two years via a registered tax or BAS agent rather than each time payroll is run. Super funds report payment of the contribution to the ATO, which is intended to “create visibility of non-payment or late payment of super entitlements and enable the ATO to take prompt action“. Reporting under Single Touch Payroll removes the requirement to issue payment summaries, payment summary annual reports and TFN declarations to the ATO. Voluntary reporting is also extended to employer superannuation contributions and fringe benefits amounts.

Depending on the amount that was overpaid, the repayment is typically deducted from one or more Regular Pay Runs OR the payee may agree to return the funds. Send your Pay Event and complete any previous submissions waiting for a responseThere is a problem loading the transaction data, accessing the data folder or there is nothing to process. The reports can be lodged through your bookkeeping software, or ask your accountant for paper forms.

Are no longer required to provide PAYG payment summaries to employees or lodge a payment summary annual report for information they report and finalise through STP. You won’t need to lodge employees’ tax file number declarations to the ATO, and the ATO will notify employees if they’ve provided you with incorrect information. The ATO will also share your payroll information with Services Australia so you don’t have to.

• The process and procedure for implementing STP by a business will therefore rely primarily on its payroll software, and any support available from the chosen software provider.
• When using submission type F – Fix YTD, the system includes all YTD amounts paid since 1 July .
• All employers must have STP set up from 1st July 2021 for the new year.
• The Superannuation Guarantee Contribution percentage will increase to 10.5%, effective for all pay runs with a date paid on or after 1 July 2022.