Bookkeeping) Now)and)the)Future) Single'Touch'Payroll' S) - - PDF document

Bookkeeping) Now)and)the)Future) Single'Touch'Payroll'

Payroll'

S)

Payroll)

“We$(ICB)$completely$support$the$development$

• f$so9ware$integra>on$with$some$Government$

services$that$assist$employers$to$manage$their$ payroll$more$efficiently”$ S)

1.'Registra6on'(ABN,'TFN,'PAYGW)'

' ' ' ' '' Recent&changes&to&the&ABR&and&the&registra1on& process&to&automate&and&simplify&registra1on& towards&a&“Single&Touch”&registra1on&should&be& acknowledged&and&con1nued.' ' S)

S)

1.'Registra6on'(ABN,'TFN,'PAYGW)' 2.'Registra6on.'Super….'

(Superfunds,'SuperStream,'Super'clearing' house)' ' Current&implementa1on&of&SuperStream&by&the& soAware&(and&their&links&with&clearing&houses& and&payment&gateways)&is&heading&towards&an& employer&being&able&to&establish&“SuperStream”& compliance&within&the&soAware&in&a&streamlined& approach'' S)

Acquisi6on'of….' & Payroll&is&complex:&&FairWork&and&Tax&and&Super.&& Employers&must&seek&professional&help&to&ensure& they&understand&the&law,&understand&their&

• bliga1ons&and&implement&system&to&comply,&as&

consequences&are&dire.' & S)

3.'Payroll'Knowledge' 4.'Establishment'of'SoNware'

(Acquisi6on,'training,'set'up)'&is&established& (varies)&' & Employers&should&be&supported&in&their& acquisi1on&and&correct&establishment& & Payroll&in&Australia&DOES&NOT&apply&to&each& employer&the&same&way&hence&customisa1on&is& ALWAYS&required.&&It&is&false&to&expect&soAware& will&ensure&compliance.' S)

5.'Engage'employees'

a.'Interview'and'offer'process' b.'Employment'contract'

increasingly&HR&soAware&that&assists&these& processes&is&coming&to&the&market.&&& A&truly&“Single&Touch”&payroll&process&would& integrate&this&process&with&the&engagement&of& an&employee'' S)

5.'Engage'Employees'cont.'

• c. 'Employee'details'to'be'acquired'

'(“Commencement”)'

• Award'details'to'be'determined'and'

applied'

• TFN'Dec'informa6on'
• Super'Informa6on''

S)

13)

ATO'Single'Touch'Payroll'

• Commencement'

– Informa6on'

12)

Digital'Correspondence'

TFN'Dec'(via'myGov)'

What'is'your' employer’s'ABN?' Full'Time' Part'Time' Casual' Labour'Hire' Super'Stream' Income'

Start'Date' Tax]Free'threshold?' Yes'/'NO'

Where'to'you'want' your'Super'Paid?' It'lists'the'persons' known'funds!' Or''Default' Or'Other' Submit'to'employer'

“Your)TFN) declara>on)has) been)submiBed) to)your) employer,)the) ATO)and)the) Department)of) Human)Services”)

Our'Payroll'SoNware'

Our'Payroll'SoNware'

You)have)received:) '''3''New'Employee'Details'from'myGov'

IMPORT)

Our'Payroll'SoNware'

You)have)received:) ''

Accept)

Field) Received) Corrected) Name' Fred'Smith' Address' 3'Blakey'Dr' Date'of'Birth' 34/15/2015' TFN' 1'23'543'2' Tax'Free'T/hold' Yes'please' Superfund' My'Pocket' Bank'details' The'other'pocket'

Reject)

Employment'Process'/'Checklist'

New)Employee)Process) [))])Receive)Internal)Details) [))])Provide)myGov)instruc>ons) [))])Receive)myGov)transmission) [))])Confirm)Establishment)in)System) )

Employee'Portal'

Payslips) Details) History) Leave)Applica>ons) Performance) Send)Employment)Details) Super)Choice) '

IMPORT)

5.'Engage'Employees'''cont.'

• d. ''''Establish'employees'in'the'Payroll'system'

& Different&brands&are&at&different&stages&of&what& we&would&refer&to&as&best&prac1ce&and&efficient& business&process.&&Further&development&is& required.&STP&should&drive&a&digital&interchange&

• f&informa1on&that&further&facilitates&this&

process.' ' S)

6.'Payrun'instruc6ons'

Different&brands&are&at&different&stages&of&applying& best&prac1ce&and&efficient&business&process&to& various&different&business&circumstances.' & In&a&full&STP&world&automa1on&of&the&informa1on& and&authorisa1on&processes&will&be&more&“digitally”& facilitated.&&Similar&to&current&developments&in&the& Purchase&Invoice&recogni1on&and&processing& procedures,&we&believe&payrun&informa1on&should& follow&a&similar&process.'

S)

7.'Process'Payrun'

• a. Calculate)gross)amounts)to)be)paid)
• b. Apply)taxes)etc)
• c. Verifica>on)and)Authorisa>on)to)make)

payments)

• d. Payslips)to)be)provided)to)the)Employee)
• e. Payment)instruc>ons)for)the)employee’s)net)

pay)(preferably)through)payment)gateway)in) the)so\ware))and)make)payment)

S)

ATO'Single'Touch'Payroll'

• Commencement'

– Informa6on'

• Payrun'

– Repor6ng' – Payment'

• Cessa6on'

– No6fica6on' – Separa6on'Cer6ficate'

12)

ATO'STP'Payroll'

Payrun) Pay)net)to)employees) Payslips)to)employees) Payment)instruc>ons)to)Bank) Schedule)PAYGW) Schedule)SGC) Payment)Summary)repor>ng) Report)to)ATO) PAYGW)to)ATO) SGC)to)SuperStream)

42

Current

$- $5,000.00 $10,000.00 $15,000.00 $20,000.00 $25,000.00 $30,000.00 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 Week (Fiscal Year 2011-12) Cash Flows Out Super PAYGW Salary/Wages Total incl. GST & PAYGI Total Employee Costs

Natural Systems

$- $5,000.00 $10,000.00 $15,000.00 $20,000.00 $25,000.00 $30,000.00 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 Week (Fiscal Year 2011-12) Cash Flows Out Super PAYGW Salary/Wages Total incl. GST & PAYGI Total Employee Costs

Single Touch Payroll – Cash Flow (current vs future)

Future Current

43

Current

$- $5,000.00 $10,000.00 $15,000.00 $20,000.00 $25,000.00 $30,000.00 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 Week (Fiscal Year 2011-12) Super PAYGW Salary/Wages Total incl. GST Total Employee

Single Touch Payroll – Cash Flow (current vs future)

Current

44

Current

$- $5,000.00 $10,000.00 $15,000.00 $20,000.00 $25,000.00 $30,000.00 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 Week (Fiscal Year 2011-12) Super PAYGW Salary/Wages Total incl. GST Total Employee

Single Touch Payroll – Cash Flow (current vs future)

Current

45

Current

$- $5,000.00 $10,000.00 $15,000.00 $20,000.00 $25,000.00 $30,000.00 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 Week (Fiscal Year 2011-12) Cash Flows Out Super PAYGW Salary/Wages Total incl. GST & PAYGI Total Employee Costs

Natural Systems

$- $5,000.00 $10,000.00 $15,000.00 $20,000.00 $25,000.00 $30,000.00 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 Week (Fiscal Year 2011-12) Super PAYGW Salary/Wages Total incl. GS Total Employ

Single Touch Payroll – Cash Flow (current vs future)

Future

46

Current

$- $5,000.00 $10,000.00 $15,000.00 $20,000.00 $25,000.00 $30,000.00 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 Week (Fiscal Year 2011-12) Cash Flows Out Super PAYGW Salary/Wages Total incl. GST & PAYGI Total Employee Costs

Natural Systems

$- $5,000.00 $10,000.00 $15,000.00 $20,000.00 $25,000.00 $30,000.00 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 Week (Fiscal Year 2011-12) Super PAYGW Salary/Wages Total incl. GS Total Employ

Single Touch Payroll – Cash Flow (current vs future)

Future

“Highligh6ng'the'difficulty'facing'businesses' in'regula6ng'their'cashflow,'the'..'survey'found' 41%'of'respondents'would'miss'payments'to' their'trade'suppliers'if'unable'to'meet'all'of' their'obliga6ons,'followed'by'other'bills' including'credit'cards,'loans,'telephones,' mortgages,'and'the'internet.'“'

Dun&&&Bradstreet&Business&Expecta1ons&Survey&from&2014,&&

48

Current

$- $5,000.00 $10,000.00 $15,000.00 $20,000.00 $25,000.00 $30,000.00 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 Week (Fiscal Year 2011-12) Cash Flows Out Super PAYGW Salary/Wages Total incl. GST & PAYGI Total Employee Costs

Natural Systems

$- $5,000.00 $10,000.00 $15,000.00 $20,000.00 $25,000.00 $30,000.00 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 Week (Fiscal Year 2011-12) Super PAYGW Salary/Wages Total incl. GS Total Employ

Single Touch Payroll – Cash Flow (current vs future)

Future

49

Current

$- $5,000.00 $10,000.00 $15,000.00 $20,000.00 $25,000.00 $30,000.00 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 Week (Fiscal Year 2011-12) Cash Flows Out Super PAYGW Salary/Wages Total incl. GST & PAYGI Total Employee Costs

Natural Systems

$- $5,000.00 $10,000.00 $15,000.00 $20,000.00 $25,000.00 $30,000.00 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 Week (Fiscal Year 2011-12) Super PAYGW Salary/Wages Total incl. GS Total Employ

Single Touch Payroll – Cash Flow (current vs future)

Future

Single'Touch'Payroll'

• ICB'Support'“A”'STP'program'
• The'proposed'ATO'program'needs'

– Work' – Considera6on'of'the'95%'that'comply' – Cashflow'is'a'fundamental'issue' – Repor6ng'has'posi6ve'poten6al' – Follow'up'the'non]compliant'is'fine'

11)

ATO'STP'Payroll'

Payrun) Pay)net)to)employees) Payslips)to)employees) Payment)instruc>ons)to)Bank) Schedule)PAYGW) Schedule)SGC) Payment)Summary)repor>ng) Report)to)ATO) PAYGW)to)ATO) SGC)to)SuperStream)

Qtrly'Process'/'Checklist'in'S/W'

Ac>vity)Statement)Process) [))])Review)ini>ated) [))])Review)Processed) [))])Sent)for)Authorisa>on) [))])Authorisa>on)Received) [))])Lodged) )

SoNware'

Authoriser)

Declara6ons'

Declara6ons' Declara6ons'

Declara6ons' Digital'Signatures'

Authoriser)

SoNware'

Authoriser) Government)