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

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

S) Payroll' S) Payroll) “We$(ICB)$completely$support$the$development$ of$so9ware$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) 1.'Registra6on'(ABN,'TFN,'PAYGW)' S) 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) 3.'Payroll'Knowledge' Acquisi6on'of….' & Payroll&is&complex:&&FairWork&and&Tax&and&Super.&& Employers&must&seek&professional&help&to&ensure& they&understand&the&law,&understand&their& obliga1ons&and&implement&system&to&comply,&as& consequences&are&dire. ' & S) 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''

13) 12) ATO'Single'Touch'Payroll' • Commencement' – Informa6on'

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:) ' ' 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' Accept) 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) '

S) 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& of&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) 12) ATO'Single'Touch'Payroll' • Commencement' – Informa6on' • Payrun' – Repor6ng' – Payment' • Cessa6on' – No6fica6on' – Separa6on'Cer6ficate'

ATO'STP'Payroll' Pay)net)to)employees) Payrun) Report)to)ATO) Payment)instruc>ons)to)Bank) PAYGW)to)ATO) SGC)to)SuperStream) Payslips)to)employees) Schedule)PAYGW) Schedule)SGC) Payment)Summary)repor>ng) Single Touch Payroll – Cash Flow (current vs future) Current Current $30,000.00 $25,000.00 Super Cash Flows Out $20,000.00 PAYGW $15,000.00 Salary/Wages Total incl. GST & PAYGI $10,000.00 Total Employee Costs $5,000.00 $- 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) Future Natural Systems $30,000.00 $25,000.00 Cash Flows Out $20,000.00 Super PAYGW $15,000.00 Salary/Wages Total incl. GST & PAYGI $10,000.00 Total Employee Costs $5,000.00 $- 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) 42

Single Touch Payroll – Cash Flow (current vs future) Current Current $30,000.00 $25,000.00 Super $20,000.00 PAYGW $15,000.00 Salary/Wages Total incl. GST $10,000.00 Total Employee $5,000.00 $- 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) 43 Single Touch Payroll – Cash Flow (current vs future) Current Current $30,000.00 $25,000.00 Super $20,000.00 PAYGW $15,000.00 Salary/Wages Total incl. GST $10,000.00 Total Employee $5,000.00 $- 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) 44

Single Touch Payroll – Cash Flow (current vs future) Natural Systems Future Current $30,000.00 $30,000.00 $25,000.00 Super Cash Flows Out $20,000.00 PAYGW $25,000.00 $15,000.00 Salary/Wages Total incl. GST & PAYGI $10,000.00 Total Employee Costs $5,000.00 $20,000.00 Super $- 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 PAYGW Week (Fiscal Year 2011-12) $15,000.00 Salary/Wages Total incl. GS $10,000.00 Total Employ $5,000.00 $- 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) 45 Single Touch Payroll – Cash Flow (current vs future) Natural Systems Future Current $30,000.00 $30,000.00 $25,000.00 Super Cash Flows Out $20,000.00 PAYGW $25,000.00 $15,000.00 Salary/Wages Total incl. GST & PAYGI $10,000.00 Total Employee Costs $5,000.00 $20,000.00 Super $- 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 PAYGW Week (Fiscal Year 2011-12) $15,000.00 Salary/Wages Total incl. GS $10,000.00 Total Employ $5,000.00 $- 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) 46

“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,&& Single Touch Payroll – Cash Flow (current vs future) Natural Systems Future Current $30,000.00 $30,000.00 $25,000.00 Super Cash Flows Out $20,000.00 PAYGW $25,000.00 $15,000.00 Salary/Wages Total incl. GST & PAYGI $10,000.00 Total Employee Costs $5,000.00 $20,000.00 Super $- 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 PAYGW Week (Fiscal Year 2011-12) $15,000.00 Salary/Wages Total incl. GS $10,000.00 Total Employ $5,000.00 $- 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) 48