End of Financial Year 2019 A Detailed Look Presented by Cameron - - PowerPoint PPT Presentation
End of Financial Year 2019 A Detailed Look Presented by Cameron Dean Today's Agenda Reconciling the Payroll What is a Payment Summary? Ordering Payment Summaries What is an ETP? Why we may contact STP and What is an you Income
Presented by Cameron Dean
What is a Payment Summary? What is an ETP? STP and What is an Income Statement? Due Dates Key Tips Terminations Reconciling the Payroll Ordering Payment Summaries Why we may contact you What if there is a mistake? What are the charges
Total Gross Pay Total Tax Allowances and Deductions Reportable contributions Termination Payments Submitted electronically to the ATO
A Payment Summary is just a snapshot of what the employee has received from you – the employer. It does not take into account their personal circumstances.
Employee Termination Payment Separate Payment Summary for each payment or code Not all terminated employees will receive an ETP Payment Summary
Payment Summary and EOFY USB Order Forms to Aussiepay- 5th July Provide Payment Summaries to employees- 14th July Send data to ATO (Non- STP)- 14th August Send STP Finalisation- 31st July
Educate your stakeholders Get your order in ready Try not to rush Check all reports thoroughly Give yourself time and don’t leave it until the last minutes Help us to help you
Employer Details Employee Details Month End Payroll Summary (June) General Ledger Reportable Employer Super ContributionsC Reportable Fringe Benefit Amounts Allowances & Deductions Payment Summary Reconciliation Report
Date of Birth Earnings Signatories Final payroll for the year Minimum Wage increase
Not an report of all payments made to employees Only contains declarable payments as confirmed by the ATO.
RESC are superannuation contributions you make that your employee has had an influence over (e.g. salary sacrifice super). Any Employer contributions in addition to the compulsory SGC that are the result of company wide policy are not likely to be included in RESC.
Reportable Employer Superannuation Contributions (RESC)
What should be included in RESC?
Salary Sacrifice to superannuation Any Additional Employer contribution that an employee has asked you to make, or has been part of contract negotiations. Insurance Premiums made within a employer super fund
For example, the employee may have asked for a lower cash salary in return for higher employer contributions.
What should not be included in RESC?
Superannuation Guarantee Contributions (SGC) Award Superannuation Contributions Company wide Additional Employer contributions.
For example, you may pay all of your employees 15% superannuation. This will be made up of 9.5% SGC and 5.5% Additional Employer contributions
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The Reportable Fringe Benefit Year ended on 31/03/2019 RFB over $2,000 are required to be reported
Please provide Aussiepay with the amount already Grossed Up
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Not all Allowances & Deductions are required to be reported It should display based on the reason for the payment, not what it has been labelled Refer to the ATO or your payroll consultant for clearer requirements on Allowances or Deductions.
Phone & Internet Kilometre Motor Vehicle Tool Laundry
Union Contributions Professional Association Fees Workplace Giving
“Payments” minus any Lump Sum or After Tax Payments Minus Deductions Before Tax
Payments – Lump Sum – After Tax Payments – Deductions Before Tax = Gross Pay
Lump Sum Payments, Taxes, Allowances, Deductions and RESC should balance to each section
Lump Sum A = Lump Sum A, or, Eligible Termination Payment = ETP, or, Tax = Tax
All Payments contribute to Gross Pay with the following exceptions:
Payments In Lieu of Notice Genuine Redundancy Gratuity Payments Long Service Leave accrued prior to 16 August 1978
ETP payments can include:
Payments In Lieu of Notice Payments made over the Tax Free threshold Rostered Day’s off Sick leave on Termination Compensation payments Some invalidity or death payments
Each ETP will be designated a code Contact your Payroll Consultant for more information on ETP codes. Each ETP is included on the Employee Termination Report
Lump Sum A payments attract a different tax rate and are specific to termination reason and some early leave accruals:
LSL accrued between 16 Aug 1978 & 17 Aug 1993 Annual Leave accrued prior to 18 August 1993 LSL due to Genuine Redundancy, invalidity or approved early retirement schemes Annual Leave due to Genuine Redundancy, invalidity
Lump Sum B payments relate to unused Long Service Leave prior to 16/08/1978 and attracts a different tax rate. Payable on all termination reasons except:
Genuine Redundancy Invalidity Approved Early Retirement
Tax Free portion of Genuine Redundancy Dependant on Years of Completed Service Not assessable income
Don’t panic Gather information Contact your consultant Approve any adjustments on time Approve Year End Reports again Any update to previous finalised STP reports must be done within 14 days.
Online Order Form this year It covers all entities you are an authority for It covers Production, Printing, Postage and the EOFY USB If no confirmation is received we will produce the summaries
Normal Payroll Processing Fee Express processing Postage and Printing Rollback and Reproduce
Information will be pre-filled into myTax Employees will be able to view their tax and super information Information reported through STP will be displayed in the Tax Agent and Business Portals Sharing of data with other Commonwealth agencies
Pay Event Submission
Information will be prefilled W1 and W2 Labels
The Payroll Verification Reports email that you receive will be updated to include an STP declaration You’ll need to reply to this email declaring your Payroll is “Approved”. Once the “Approval” is received your data will be sent to the ATO when your employees are paid
The Year End Reports email that you receive will be updated to include an STP declaration for the year You’ll need to reply to this email declaring your financial year data is “Approved”. Once the “Approval” is received your data will be sent to the ATO as a “Finalisation Event”
Getting it right the first time is important If the data hasn’t been sent to the ATO then a rollback can easily be done You need to let us know as soon as possible if an error has occurred ATO requires errors to be reported within 14 days of detection
❑Advise employees about STP and encourage them to create a MyGov Account ❑Make sure your employees’ name, address and date of birth are correct ❑Make sure all employees have supplied their TFN ❑Ensure that your internal processes have sufficient checking of payroll prior to approval
❑Further changes to the process will be communicated as they are finalised by the ATO ❑ Financial Controller is now available ❑ Payroll Consultant Support
Key Tips Due Dates Check & Reconcile Terminations and ETP Coding Submit your Order We may contact you What to do if there is a mistake Single Touch Payroll Ready
1800 729 765 | service@aussiepay.com.au