Transition to STP Reporting during a payroll year


FROM:

SINGLE TOUCH PAYROLL ‘PAYROLL REPORTING’ BUSINESS IMPLEMENTATION GUIDE (SINGLE TOUCH PAYROLL BIG)


PAGE: 39


3.4.1 Transition into Single Touch Payroll


An employer may start STP reporting at any time throughout a financial year.

The business rules for transitioning into STP are:

1. Employers must be registered for PAYG withholding prior to submitting their first pay event.


2. An employer who provides STP reports for employees (active/inactive and terminated) through STP will have met their reporting obligations (as long as the final declaration is provided) and will not have to provide a payment summary. Employers may transition into STP using one of the following methods. Refer to section 3.3 for details on finalisation of STP information

a. An employer may provide an opening YTD balance for all employees (active/inactive and terminated) in an update event.

b. An employer may report all employees being paid and inactive/terminated employees YTD information in the first pay event.

c. An employer may report YTD amounts for employees through a pay event. YTD amounts for inactive/terminated employees may be reported in a later update event, which must be lodged by 14 July or the deferred due date.

d. An employer may report YTD amounts for all employees being paid in the first regular pay cycle, through a pay event and provide a payment summary and payment summary annual report, for terminated and inactive employees.

e. An employer may begin STP reporting employee amounts, from zero in a pay event and provide a payment summary and a payment summary annual report to the ATO, for prior amounts not reported through STP.


3. Activity statement transition process will include:

a. PAYG withholding section will be removed from the activity statement for large withholders who report via STP.

b. From July 2019 for small and medium withholders, the ATO will prefill the activity statement with employer period PAYG withholding (W2) and gross payment (W1) amounts, reported in the pay event for activity statements.

i. The employer will need to change the activity statement prefill amount, to include withholding amounts not reported via STP.


4. If the first STP report contains employee withholding details and this is not a TFN declaration, then do not populate the employee declaration (see section 3.5.2).



See ATO link here as well - Transitioning to Single Touch Payroll



Starting to use STP Creator


You can start using STP Creator at any time. The first payroll reported may need to be different - see below.


Payee YTD Data

Each STP Report always sends Payee YTD data. It does not matter which dates you specify, STP Creator will use the Register Summary YearTo Date data from the linked MYOB® company file.


By including all payees/employees paid since 1 July in your first STP Report, you not only bring your STP Reporting up to date for the year, you also avoid having to provide Payment Summaries and an EMPDUPE file for payees/employees who may have since left.



No employees have left since 1 July

Setup your Data Set File and process your payroll in the normal matter. See the Videos on Setup and Use of STP Creator (Vanilla example). Your first STP Report will send the current YTD totals, and your STP Reporting will be immediately up to date.



Some employees have left since 1 July - using MYOB®

When setting up your Date Set File, be sure to include all employees in the STP Report who have received a payment since 1 July, even those who no longer work for you, or are no longer paid. For those who have been terminated, update the Card in MYOB® with a Termination Date.


The YTD Totals In MYOB screen will include details of all employees who have been paid during this Payroll Year. STP Creator will alert you if you have excluded an employee for whom MYOB® has a YTD amount.


On the Final STP Report Data screen, select those employees who have since been Terminated and click the Final Indicator button. The column titled 'Final EOY pay indicator' will show TRUE for these employees.


After you submit this STP Report, open the Payee screen from the Permanent Data Set screen. Select the Terminated employees and click 'Exclude from STP'. These Employees will be excluded from future STP Reports. You do not need to provide a Payment Summary for these employees at year end, nor report them separately to the ATO. If you have already provided the Terminated employee with a Payment Summary, you will not need to send an EMPDUPE file to the ATO for them, the STP Report is all you need to do.


Note: Once these employees have been finalised and excluded from STP Reporting, their Income Statement YTD data will continue to show in STP Creator. You will also get an alert when you click 2. Load Payroll Data that there are employees with YTD amounts who are not included in the STP Report. This alert can be ignored if it relates solely to Terminated employees. To prevent the alert, tick 'Ignore YTD Amounts in MYOB' as outlined under Edit Payee.



Some employees have left since 1 July - not using MYOB®

When setting up your Date Set File, you will need to add all Payees who have received a payment since 1 July, even those who no longer work for you, or are no longer paid. For those who have been terminated, ensure you add the Termination Date on the Payee Details screen. Ensure these Payees are set to be included in the STP Report.


When adding YTD Totals In MYOB, include YTD details of all employees who have been paid during this Payroll Year, including those who have since left.


On the Final STP Report Data screen, select those employees who have since been Terminated and click the Final Indicator button. The column titled 'Final EOY pay indicator' will show TRUE for these employees.


After you submit this STP Report, open the Payee screen from the Permanent Data Set screen. Select the Terminated employees and click 'Exclude from STP'. These Employees will be excluded from future STP Reports. You do not need to provide a Payment Summary for these employees at year end, nor report them separately to the ATO. If you have already provided the Terminated employee with a Payment Summary, you will not need to send an EMPDUPE file to the ATO for them, the STP Report is all you need to do.


Note: Once these employees have been Finalised and excluded from STP Reporting, you will not need to include their YTD data in STP Creator.



Payer Activity Statement Data

Each STP Report also sends Payer Activity Statement Data (W1 and W2 totals ) - these are for the relevant Pay Period - not year to date. The ATO will use this data to pre-fill your next online Activity Statement. If you commence STP Reporting during an Activity Statement reporting period, normally the Payer Activity Statement totals (W1 and W2) sent by STP Creator will be for the current pay period and may not reflect all Payer W1 W2 amounts for the reporting period. The pre-fill data on your next online Activity statement may therefore be incorrect - it is up to you to override the pre-filled data and use the correct W1 W2 amounts for the relevant Activity Statement.


If you want to ensure the pre-fill data on your next Activity Statement is correct, you can modify the normal setup to achieve this. Say for example you lodge quarterly Activity Statements. You pay your employees monthly on the last day of each month. You commence using STP Creator to report the payroll payment made 30 Nov 2019. To ensure the Payer Activity Statement totals (W1 and W2) for your next online Activity statement for the Quarter Ended 31 Dec 2019 is correct, set the Dates on your first STP Report as follows:




This will ensure the first STP Report includes in the W1 and W2 amounts for this report all payroll payments from 1 Oct 2019 to 30 Nov 2019.


On your next STP Report (for the payment on 31 Dec 2019) set the dates in the usual manner:





Extra Assistance Required

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