Do you employ people in your business? Are you aware of the single touch payroll initiative by the Australian Taxation Office? The Australian Taxation Office (ATO) requires all employers to report the payroll information of the employees to them through single touch payroll.
For businesses employing 20 or more employees, the STP reporting was made mandatory from 2018 but certain businesses with less than 20 employees have until June 2021 to adopt single touch payroll reporting.
Single touch payroll reporting simply means that the tax, Super and payroll information is submitted to the taxation office in real-time. The required information is sent to the ATO as and when the payroll is run. It can happen weekly, bi-weekly, monthly or at any other interval.
There are several advantages of this system for employees as well as employers. It helps in significant savings in terms of time taken for manual entry and it also helps in reducing the potential for errors. Also, it means that businesses do not need to provide the payment summary annual report to the ATO. It also cuts down a lot of paperwork.
If you are using MYOB Advanced in your business and you want to know whether it is capable of single touch payroll reporting, the simple answer is yes. While there are a number of solutions available for STP, MYOB Advanced is a leader in this space because of certain advantages outlined below:
While the system is capable of single touch payroll, it’s not going to happen automatically. You will need to set it up and activate it. There is a detailed guide available on the MYOB website to help you understand how to set up single touch payroll.
The software makes use of the standard business reporting (SBR) mechanism for submitting the payroll data to the ATO. You will first need to register for SBR. In order to do that, a software ID must be generated for the company in the system and those IDs need to be registered with the ATO.
The user also needs to be granted access to be able to send the data using MYOB advanced. The user also needs to be associated with the my.MYOB login in order to be able to use this feature.
Before the data is sent to the ATO, it is important to make sure that all the necessary data is there for the submission to be successful. The software contains validation checks that should be run in order to highlight any errors.
Keep in mind that the system runs validation checks automatically whenever a payment is processed but you can also do it manually. The validation check involves employee records, pay items as well as payer records.
Certain valid information is required for employees, payers as well as pay items for successful submission. For instance, employee details that are required include last name, date of birth, address line, city, postcode, state as well as payment summary type. When it comes to payers, the details include ABN, name of the company, address line, phone, city, postcode as well as state.
Once the data validation checks have been done and the batch has been submitted to the ATO, you can find more information about the status of the submission in the system. You will get a number of possible statuses including submission successful, submission failed, submission not successful, submission pending, submission received and various others.
Overall, single touch payroll reporting is designed to make things easy for everyone involved in payroll reporting including the taxation office, employers as well as employees. The submission is done in real-time and saves a lot of time for everyone involved and also results in fewer potential errors.
However, the single touch payroll reporting system needs to be properly set up and activated in MYOB Advanced. This is where experts in MYOB Advanced such Stratus Group can be of great help to you.
If you are looking to implement the MYOB Advanced STP feature, then please get in touch with us at Stratus Group. At Stratus Group, our MYOB consultants do not just provide you with the software, we also provide expert knowledge and support.
We will make sure that your MYOB Advanced software is implemented properly and will work with you directly at all times during the whole process to ensure that you get exactly what you need. We also provide after-implementation support and assistance.
Take your business to the next level. With the business world facing so many uncertainties, simplify and protect your processes. Upgrade your system to MYOB Advanced now and get ahead of the competition.
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