If you’re a small employer with 19 employees or less, you have until 30 September 2019 to connect your accounting software to the ATO for Single Touch Payroll (STP) purposes. If you haven’t yet done so because you simply don’t know how to do it, then this blog is for you! This will be a four-part series beginning with Xero software. We will cover Saasu, MYOB and QuickBooks Online in subsequent blogs.
Connecting your Xero file for STP
Before proceeding with the connection, it is advised that you review and update your organisation details and also all employee details like dates of birth, tax file numbers and residential addresses. It is also advised that you check your payroll set up especially pay items and ensure they are correct. Your tax professional can assist with this if necessary.
Here are the steps you need in order to connect:
In the Payroll menu, select “Pay employees”.
In the message about Changes to the way you report payroll information to the ATO, click “Get started”. If you don’t want to opt-in right now, close the message by clicking Remind me later. To reopen the message, click Setup Single Touch Payroll.
Click Opt-in to confirm.
Review your organisation details. If necessary, click Update Organisation details. Xero will redirect you to the Organisation details page. Otherwise, click Continue.
To connect your Xero account to the ATO, call the ATO on 1300 852 232.If you use the ATO business portal or have a myGov account, you can also log into Access Manager and nominate Xero as your software service provider there – a bit easier than calling the ATO!
Provide the ATO with the proof of ownership listed in Xero’s prompt, including your Australian Business Number (ABN) and Software ID (SSID).
Select the checkbox to confirm you’ve contacted the ATO to connect your Xero account.
Click Register.
Xero will redirect you back to the Pay employees page. You’ll now see an STP filing column in the Pay Run History table.
Once you’re set-up, the option to report a payment to the ATO will be presented for each pay run and your payroll information will be filed with the tax office each time.
I need more information
No problems! Here is the link to the Xero blog about connecting for STP – includes details for business owners and tax professionals connecting on their clients’ behalf.
An accessory to a crime is a person who participates knowingly and voluntarily in the commission of a crime. An accessory can be categorised as before or after the fact (the commission of the crime). They need not be actually present at the scene of the crime in order to be held liable.
Legalmatch.com
In the bookkeeping world, there is much chatter about “accessorial liability” especially in relation to those providing payroll services for clients. So what is this about and what does it mean? Basically, as per the above quote, if you are involved in contravening the Fair Work Act 2009 and are knowingly doing so, then, if investigated by the Fair Work Ombudsman (FWO), you could be classified as an accessory to the contravention and be prosecuted accordingly. In simple speak, if you are involved in performing payroll tasks for a client (or your employer) and you know that something is being done illegally or incorrectly in relation to the payroll and you do not do anything to rectify it, you have just made yourself an accessory. The FWO is clear about this and there are no if, buts, or maybes. No excuses accepted. So there are 3 aspects to accessorial liability – being involved, knowing it’s happening, and doing nothing to stop it. Is this scary for bookkeepers? You bet your life it is!
Should I stay or should I go now?
So if you’re a bookkeeper reading this and you’re not already scared about your involvement in your clients’ payroll, then you should be! In general, you do your best and bring your expertise and knowledge to the task, and hope that all will be well. But is that enough? Perhaps not it seems. The FWO will have us believe we need to do more in order to avoid becoming an accessory to payroll contraventions. So what can you do if you suspect something is out of kilter with a client’s payroll? Athena Koelmeyer from Workplace Law makes the following suggestions:
Arrange for a payroll audit to be performed by a professional HR service. This will uncover any anomalies and errors being made and assistance will be provided to rectify them.
Make sure that appropriate processes are in place and are being followed correctly. These processes should include:
ensuring employers (your clients) are across their obligations under the Fair Work Act 2009, modern awards and any record-keeping obligations
ensuring employees are properly classified under their relevant award
ensuring employees pays are correctly in terms of minimum rates of pay, allowances, penalties and loadings
ensuring all payroll records are compliant and correct
keeping up to date with changes to modern awards, especially pay rates, allowances, loadings, penalty rates etc.
conducting regular audits of your payroll set up, especially when using generic software
If you discover any anomalies with your client’s payroll, communicate this immediately with the client and ensure that they rectify the situation. Keep written records of the steps that were taken to repair the issue/s. If neither you or your client can rectify the issues, seek professional advice and assistance. Do not ignore the situation.
The above is great advice is should be followed if you are going to provide a best-practice service to your client. As bookkeepers, however, we all know that in reality, making clients cross the t’s and dot the i’s is not as easy as it sounds. Some clients take your advice on board and some don’t for whatever reason. So what is Athena’s advice if you find yourself working with a client who is openly flaunting Fair Work laws and who refuses to make any improvements? Basically, her advice is to
RUN FORREST, RUN!
Athena says you always have to come back to the accessorial liability provisions under section 550 of the Fair Work Act when making your decision about whether to persist or leave. She says that where you are involved (processing payroll) AND you know that payroll processes as above are not sufficient, AND you don’t do anything about it (even if you tried to), you will be seen as an accessory in the event of prosecution. While this is not the forum to go into possible charges and legal consequences of said prosecution, I’m sure you’ll agree that you do not want to go there! Athena recommends that you should terminate your engagement with these types of clients immediately, no questions asked, and just walk away. Before walking away, always put your concerns and any steps taken to rectify the situation in writing to the client and retain this as your record in the event that you are pursued by the FWO. She also advises that you should report non-compliant clients to the FWO as an extra means of protecting yourself. Athena says, and I quote:
If a payroll provider makes a client aware that their systems are not compliant, refuses to participate in the contravening conduct and terminates the relationship with them, then the payroll provider has done all that they can do to make the client aware of their non-compliance and not participate in any contraventions.
Payroll HQ
In my opinion, there isn’t any job worth doing where you are putting yourself at risk of litigation and possible jail time. If you are reading this and you think you may be at risk, then get some advice from a trusted advisor and/or your bookkeeping association. If you are sure you are at risk, then take Athena’s advice and run, run, run, and don’t look back!
Do you buy business items with your own non-business funds i.e. your cash? Do you include these purchases in your accounts? Surprisingly, some of our clients don’t think that they can or should include cash receipts in their books. This is not the case!
Here at e-BAS Accounts we have embraced the concept of operating our business via the cloud. In short, we love the cloud! So what is the cloud and why do we love it?
The cloud is the current term currently being thrown around meaning “all things online”. Basically, any software you might access on your desktop or laptop, you can now access online. Okay, so why do we love it?
There are 5 reasons why we love the cloud:
1. Accessibility: The applications we use in our business are available to us on any computer, anywhere, and anytime as long as there is an internet connection available. This means we are no longer tied to our office for the purposes of accessing information. We can now access emails, accounts information, our favourite apps, etc. anytime and anywhere. Our office is now completely mobile. If we want to work on the beach at Torquay we can; if we want to sit in the park on a sunny day and process client accounts, we can; if we want to access our emails while travelling on a train, we can. You get the picture 🙂
2. It’s Cheap: Cloud applications are generally cost-effective. We can usually try an application out for free for a short period and then agree to pay a low monthly fee to continue to use the service. What’s more, we can opt-out at any time we like if we find an application better suited to our needs. It means we can operate our business on a relatively low budget, accessing some of the best and most useful applications currently available.
3. It’s Always Current: The applications we use are always up to date. No longer do we have to purchase upgrades to our desktop software. Upgrades are taken care of in the background by the cloud providers. We will never have to worry about this and what’s more, it’s part of the monthly fees we pay – it’s not extra so no ugly surprises.
4. Security & Backups: Cloud providers build their products with your data security being of the utmost importance. The same security levels we enjoy when using online banking are often used for cloud applications. We believe that is more secure to place your data into the cloud than it is to leave it on your desktop or laptop. Why? Because using the cloud is like having a continuous backup system in place. Your data is always there – it can’t be destroyed by fire, theft or flood; it can’t be corrupted or lost by computer malfunction; it can’t be accessed and altered by unauthorised staff members, etc. To keep your data totally secure, you must keep it off site and there is no site more off-site than the cloud!
5. Working Remotely: Cloud applications allow us to work remotely with our clients whether they be 5 km or 500 km away. Here are some of the applications we use here at e-BAS Accounts which make working remotely possible:
Go To Meeting: Allows us to hold meetings with clients no matter where they live
Saasu and Xero: Online accounting software which eliminates the need to send data files to and from clients/accountants and/or worry that those files are current or possibly corrupt etc.
Twitter, Facebook and Linkedin: Part of our current marketing strategy; networking strategy; learning strategy
The cloud is central to our business mission here at e-BAS Accounts – to enhance flexibility, collaboration, and efficiency by working remotely with clients and team members; we do this by primarily using online apps via the cloud. The cloud has basically made our little business possible. We believe it is the way of the future office and far better than the alternative.
If you want to be a bookkeeper in today’s environment and abide by the Tax Agent Services Act 2009, you will need to ask yourself a question: What sorts of services do I want to provide to my clients?
From time to time, you may realise that you have made a mistake on a previous activity statement. You may have found extra receipts or purchase invoices or you may have forgotten about a sales invoice that you raised in the previous period.
When you’re completing your activity statements, it’s easy to make mistakes. It happens a lot and we see them first hand here at e-BAS Accounts. The main mistakes users make are in relation to tax codes. Users often use the wrong tax code when entering various transactions into their software. Here are some common transactions that are often coded incorrectly. We show the correct tax code application:
There are a lot of terms used when we start to talk about the GST or a BAS in the BAS Agents’ world. We BAS Agents know what they mean of course but do you as the client or interested reader know what they mean? Here is a list of GST tax terms and their meanings:
The ATO has announced that those businesses providing services in the following 3 industries will be caught in the “TPAR net” from 1st July 2019.
Road freight services
Information technology services
Security, investigation or surveillance services
From 1st July 2019, businesses in the above 3 industries will need to track payments made to contractors they use to provide their services. Then, they will need to report these payments in their first TPAR which will be due for lodgement by 28th August 2020.
If your business in included in any of the above industries and you think you will need help setting up tracking payments to contractors in your chosen accounting software and/or lodging the TPAR, please don’t hesitate to get in contact with us.
The new Long Service Leave Act 2018 for Victoria was activated on 1st November 2018. Employees in Victoria who were previously covered by the Long Service Leave Act 1992, can now enjoy several improvements regarding this leave entitlement. These improvements are discussed in this blog.
