The new Long Service Leave Act 2018 for Victoria was activated on 1st November 2018. Employees in Victoria who were previously covered by the Long Service Leave Act 1992, can now enjoy several improvements regarding this leave entitlement. These improvements are discussed in this blog.
…Long Service Leave changes for Victoria November 2018Read More »
Long Service Leave changes for Victoria November 2018 Read More »
Accountants Daily have reported this week that the ATO has done a back-flip on the requirement for agents to get written authority from their employer clients to send pay event data to the ATO, each and every pay event. The ATO will now accept one lodgement authority for STP per client, to be renewed annually. This is a common-sense move by the ATO who now understand that asking employers to sign a lodgement authority form for every pay run, is super painful, annoying and inconvenient for all concerned. From the Accountants Daily article:
“Only last week, we had the commissioner sign off on a more streamlined process there. It involves an STP engagement authority, where the employer will do quite detailed authorisation upfront with their agent, in terms of what that agent can do on their behalf, including the fact that they can make those declarations on each STP report for the next 12 months,” Assistant Commissioner and Single Touch Payroll Lead at the ATO John Shepherd told Accountants Daily.
[easy-tweet tweet=”Employers may authorise their registered agents to act on their behalf for Single Touch Payroll (STP) through an annual agreement. ” hashtags=”STP, Payroll, Authorities” template=”light”]
This is very good news for all tax professionals and indeed for their clients. Many clients groan and grump at the continual need to sign authority forms for BAS and income tax lodgements (and others) but do so because they understand the compliance issues behind the action. However, asking employer clients to sign an authority for each and every pay run is completely over the top! Imagine how annoyed they would be if their payroll was on a weekly cycle – that’s 52 signings per year on top of all the other usual signings required – absolutely ridiculous! Luckily someone at the ATO has been listening to all the complaints about this and has seen reason. Now, we as agents only need to get one signature per year for STP lodgements. Finally, some common sense has found itself winding in and around the halls of the ATO!
One 12 month STP authority to replace a per pay event authority Read More »
Single Touch Payroll (STP) is formerly starting on 1 July 2018 for employers of 20 or more staff. So if you fall into this category, do you know if your accounting software is going to be ready by the start date? In today’s blog, we outline who will be ready and who is lagging behind!
We wrote about STP in our blog in May last year and in that blog we explained what STP actually is:
“STP is a government initiative requiring employers to report their payroll information to the ATO including gross wages paid, PAYG withholding tax and superannuation at the time a payrun is created i.e. every payrun. The reporting will occur directly from your chosen payroll software solution.”
So basically, each time a pay run is completed, the information about who was paid, how much they were paid, the super accrued and the tax withheld, is sent electronically to the ATO via your accounting software (or other external payroll software). If you are a large employer, your business needs to start using STP from 1 July 2018 and you can only do this if your accounting or payroll software is going to be ready on time. Here is a list of the software companies who claim that they will be ready by 1 July 2018………. and those who won’t be ready! Also included are links to the various software blogs which explain their STP status and what you need to do now if you use that software.
From MYOB link above: “Single Touch Payroll is almost here and MYOB is working directly with the ATO to ensure that you’re ready to go when it becomes mandatory on 1st July 2018 for businesses with 20 or more employees. All of MYOB’s payroll enabled solutions will be compliant prior to the reporting date and deliver an easy-to-use solution to make this transition as smooth as possible.”
From the QBO link above:
Yes, absolutely! We’re already investigating the requirements for STP reporting and will commence our implementation soon. The ATO are planning to release more information for software developers in Oct 2017 so as soon as that is available, we’ll begin our build.
We don’t have an ETA on when it’ll be ready to use, however we will definitely be ready before July 1 2018.”
From the Saasu link above: “We have already started work on Single Touch Payroll reporting within Saasu. We don’t have a fixed date on when it will be ready to use, but we will definitely be completed before July 1, 2018. We’ll make sure you know when the STP reporting functionality gets rolled out. STP will be included in your file automatically, without you needing to update, and without additional upgrade costs.”
From the Reckon link above: “All Reckon products with Payroll functionality will be STP enabled and ATO certified by 1 July 2018. This includes Reckon One, Reckon Accounts Desktop, Reckon Accounts Hosted and Payroll Premier. Reckon is part of the Australian Business Software Association who are working collaboratively to help shape and influence the design and implementation of Single Touch Payroll.”
From the CP link above: “STP reporting comes into effect on the 1st July 2018 and will be offered as part of CloudPayroll’s standard services.”
From the Xero link above: “Australia’s 1 July deadline to adopt Single Touch Payroll (STP) is fast approaching. But if you or your clients are on Xero, there’s some good news: You may have extra time. Thanks to the ATO, Xero subscribers will have a deferral of as much as six months to ensure a smooth rollout of STP.”
So basically, some Xero users will have access to STP on 1 July 2018 and others will be introduced to it later via a rollout system: “The Xero platform will invite you to use STP when it’s time to make the switch. Until then, you can process payroll as normal, without incurring any penalty. It’s that simple.”
From the MYOB other link above: “Clients who are unable to move to an STP enabled version of AccountRight, because they are currently using multi-currency, negative inventory, multi location inventory, M-Powered Payment or ODBC and those using AccountEdge, have been granted an STP reporting deferral until 31 May 2019. Others are encouraged to move to the latest version of AccountRight to ensure you are ready to meet your STP reporting obligations. “
If your software isn’t going to be ready for STP by 1 July 2018, it’s developers will apply for a deferral and will be able to provide you with a deferral reference number (DRN) which you can then quote to the ATO to advise re the delay.
NB! If your business will not be ready for STP and the reason is not related to software delays, then you will have to apply to the ATO for a separate deferral yourself. If you engage a registered BAS or Tax Agent, then he/she can apply for a deferral on your behalf – see notes from the ATO below:
Employers who won’t be ready to start STP reporting from 1 July 2018, or by their software provider’s start date, will need to apply to us for a deferral.
Registered agents providing a payroll service, or supporting employers to transition to STP, can apply for a deferral for their clients. This includes registered tax agents, registered BAS agents and payroll service providers.
You must be a registered tax or BAS agent external Link to report through STP for your clients or apply for a deferral on their behalf.
So in summary, most of the popular accounting software giants will be ready for STP come 1 July 2018 and some won’t be so ready! If your software or business won’t be ready, then a deferral application to the ATO is required. If you would like more information re STP and/or assistance with the deferral application, please get in touch – we’d be happy to assist!
[highlight color=”blue”] NB! If your chosen accounting/payroll software isn’t listed here in this blog, we advise that you contact that software immediately to find out their STP status! [/highlight]
Single Touch Payroll – is your accounting/payroll software ready? Read More »
So you’re going to start employing staff. That’s great, this usually means your small business is booming, so well done to you! Before you don your employer’s hat however, you need to make sure that you have all of your ducks in a row. There are quite a few things you need to do so to that end, we have created a quick-start guide for new employers. Our guide will tell you what you need to know, supply crucial documents and provide links to important information. Pop this blog link in your favourites for quick access as you will find it useful each time you on-board a new staff member.
…Quick-start guide for new employers Read More »
The Government are starting to push through some rather drastic measures in regards to how small business reports to the Australian Tax Office (ATO). In my last blog, I wrote about one of those new measures, Simpler BAS – a new way to report GST for SME’s. In today’s blog, I will introduce another new reporting method called “Single Touch Payroll” (STP). As the name suggests, STP will affect business owners who are also employers. Read on to find out some facts if this affects you.
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What you need to know about Single Touch Payroll Read More »
A recent reform via the Fair Work Commission has seen a major change to the way cashing out of annual leave is treated. For those who don’t know, “cashing-out” means an employee can receive their annual leave as a lump sum payment whilst still working i.e. instead of taking time off work. So how does this work and what does it mean for those affected?
…Can you cash out your annual leave? Yes you can! Read More »
Any employer (and bookkeeper) will tell you that processing payroll is a complicated task. It’s subject to many variances brought on by both individual employee requirements and state-based payroll laws. Something else that can affect payroll is public holidays and as Easter is fast approaching, we thought it timely to bring this topic to the fore. Here are 10 facts about public holidays that can impact your payroll:
…10 facts about public holidays that can affect your payrollRead More »
10 facts about public holidays that can affect your payroll Read More »
The employers’ world is complex and difficult to navigate, to say the least. Dealing with some employees can be hard enough but add to the mix tax and superannuation compliance tasks, and the job can become very tricky indeed! Most employers would be across PAYG withholding tax, payment summaries and super requirements but there is also one other tax that is perhaps lesser known – payroll tax. Not every employer needs to pay this tax but every employer should know what it is and when it should be paid.
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Payroll Tax – what, who, why & how much? Read More »
If you’re an employer, you’re probably across how payslips work right? For instance, you already know that you must give employees payslips within 24 hours of paying them and that you can provide payslips in electronic or hard copy format. So that’s it right? That’s all you need to know – well, not exactly! Did you know that Fair Work has specific requirements in terms of what information should be reported on a payslip? Do you know if your payslips are compliant? Not sure? Here is a list of items that you must include on payslips (followed by some items that don’t have to be included, but should be!)
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What information must be on a payslip? Read More »
One of the questions I get from clients frequently is: what’s the difference between PAYG withholding & PAYG Income Tax Instalments? This is especially confusing for business owners who have never paid these taxes before and are new to the PAYG system. So what are these two taxes about and how do they affect your business?
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What’s the difference between PAYG Withholding & PAYG Income Tax Instalments?Read More »
What’s the difference between PAYG Withholding & PAYG Income Tax Instalments? Read More »