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How to set up STP in your accounting software – part 2 – MYOB AccountRight

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 is a four-part series and we began the series by looking at STP and Xero software. In subsequent blogs we will also cover Saasu and QuickBooks Online.


Connecting your MYOB file for STP

Before the connection of the file to ATO happens, MYOB will ask you to verify that your payroll details, including employee setup, are correct. To begin, go to the Payroll Command Centre and click on “Payroll Reporting”. You will be directed to the “check payroll details” window which will list any anomalies MYOB has found which may inhibit STP connection.

Click on the arrow next to each error and fix the error as needed, then click on “check payroll details” again. If no further errors are found, then you are ready to connect to the ATO.

NB! ATO reporting categories need to be assigned to all of your payroll categories which you are reporting before you use STP. The above check will highlight which payroll categories need to be assigned an ATO reporting category.

To connect, click on “Payroll Reporting”.

Now click on “Connect to the ATO”

If you are the business owner and you will be processing payroll and lodging the payroll via STP, then follow the below directions:

  • Make sure you have your ABN handy.
  • Where you are asked for your role, choose “Someone from the Business”
  • Enter your declarer information including ABN, name, contact details etc.
  • Skip the “Add Clients” step.
  • At the “Notify ATO” step, you will need to provide the ATO with the Software ID number which will be shown to you in the next screen.
  • To give the ATO that special number, you can either call the ATO on this number 1300 85 22 32 or you can notify via Access Manager. You can find Access Manager either in your Business Portal or in your myGov account.

Once you’ve notified the ATO that you are using MYOB software, click on “I’ve notified the ATO” and in the message that appears, click “I’ve notified the ATO”.

If you’re a Tax or BAS Agent who will be processing and lodging payroll on behalf of a business, do exactly the same as above, however for the choice of role, choose “Tax or BAS Agent” and enter your own ABN and registered agent number. You will need to add the client in the “Add Clients” step if they aren’t already in your portal client list. Then note down the Software ID presented to you (note, this number is unique to you – you cannot use your client’s ID and they cannot use yours). Notify the ATO of your ID number as per above. Again, once this is done, you will need to click “I’ve notified the ATO”.

And as Porky Pig would say, “Th-th-th-that’s all folks!” It’s as simple as that. Of course, if you don’t find this as simple as it should be, don’t be shy, give us a call and we’ll see if we can help you out.

In the next blog, we’ll look at how STP is connected in Saasu (or not, as the case may be….). Intrigued? Don’t forget to check in and take a read to find out what we mean!

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Single Touch Payroll – is your accounting/payroll software ready?

Single Touch Payroll (STP) is formerly starting on 1 July 2018 for employers of 20 or more staff. So if you fall into this category, do you know if your accounting software is going to be ready by the start date? In today’s blog, we outline who will be ready and who is lagging behind!


We wrote about STP in our blog in May last year and in that blog we explained what STP actually is:

“STP is a government initiative requiring employers to report their payroll information to the ATO including gross wages paid,  PAYG withholding tax and superannuation at the time a payrun is created i.e. every payrun. The reporting will occur directly from your chosen payroll software solution.”

So basically, each time a pay run is completed, the information about who was paid, how much they were paid, the super accrued and the tax withheld, is sent electronically to the ATO via your accounting software (or other external payroll software). If you are a large employer, your business needs to start using STP from 1 July 2018 and you can only do this if your accounting or payroll software is going to be ready on time. Here is a list of the software companies who claim that they will be ready by 1 July 2018………. and those who won’t be ready! Also included are links to the various software blogs which explain their STP status and what you need to do now if you use that software.


Who will be ready on time?

From MYOB link above: “Single Touch Payroll is almost here and MYOB is working directly with the ATO to ensure that you’re ready to go when it becomes mandatory on 1st July 2018 for businesses with 20 or more employees. All of MYOB’s payroll enabled solutions will be compliant prior to the reporting date and deliver an easy-to-use solution to make this transition as smooth as possible.”

From the QBO link above:

“Will QuickBooks Online Payroll powered by KeyPay support Single Touch Payroll?

 
Yes, absolutely! We’re already investigating the requirements for STP reporting and will commence our implementation soon. The ATO are planning to release more information for software developers in Oct 2017 so as soon as that is available, we’ll begin our build.

We don’t have an ETA on when it’ll be ready to use, however we will definitely be ready before July 1 2018.”

From the Saasu link above: “We have already started work on Single Touch Payroll reporting within Saasu. We don’t have a fixed date on when it will be ready to use, but we will definitely be completed before July 1, 2018. We’ll make sure you know when the STP reporting functionality gets rolled out. STP will be included in your file automatically, without you needing to update, and without additional upgrade costs.”

From the Reckon link above: “All Reckon products with Payroll functionality will be STP enabled and ATO certified by 1 July 2018. This includes Reckon One, Reckon Accounts Desktop, Reckon Accounts Hosted and Payroll Premier. Reckon is part of the Australian Business Software Association who are working collaboratively to help shape and influence the design and implementation of Single Touch Payroll.”

From the CP link above: “STP reporting comes into effect on the 1st July 2018 and will be offered as part of CloudPayroll’s standard services.”

Who won’t be ready on time (and has applied to the ATO for a deferral)?

From the Xero link above: “Australia’s 1 July deadline to adopt Single Touch Payroll (STP) is fast approaching. But if you or your clients are on Xero, there’s some good news: You may have extra time. Thanks to the ATO, Xero subscribers will have a deferral of as much as six months to ensure a smooth rollout of STP.”

So basically, some Xero users will have access to STP on 1 July 2018 and others will be introduced to it later via a rollout system: “The Xero platform will invite you to use STP when it’s time to make the switch. Until then, you can process payroll as normal, without incurring any penalty. It’s that simple.”

From the MYOB other link above: “Clients who are unable to move to an STP enabled version of AccountRight, because they are currently using multi-currency, negative inventory, multi location inventory, M-Powered Payment or ODBC and those using AccountEdge, have been granted an STP reporting deferral until 31 May 2019. Others are encouraged to move to the latest version of AccountRight to ensure you are ready to meet your STP reporting obligations. “

What can I do if my software will not be ready for STP implementation by July 1 2018?

If your software isn’t going to be ready for STP by 1 July 2018, it’s developers will apply for a deferral and will be able to provide you with a deferral reference number (DRN) which you can then quote to the ATO to advise re the delay.

NB! If your business will not be ready for STP and the reason is not related to software delays, then you will have to apply to the ATO for a separate deferral yourself. If you engage a registered BAS or Tax Agent, then he/she can apply for a deferral on your behalf – see notes from the ATO below:

“Deferrals

Employers who won’t be ready to start STP reporting from 1 July 2018, or by their software provider’s start date, will need to apply to us for a deferral.

Registered agents providing a payroll service, or supporting employers to transition to STP, can apply for a deferral for their clients. This includes registered tax agents, registered BAS agents and payroll service providers.

You must be a registered tax or BAS agentExternal Link to report through STP for your clients, or apply for a deferral on their behalf.


So in summary, most of the popular accounting software giants will be ready for STP come 1 July 2018 and some won’t be so ready! If your software or business won’t be ready, then a deferral application to the ATO is required. If you would like more information re STP and/or assistance with the deferral application, please get in touch – we’d be happy to assist!

[highlight color=”blue”] NB! If your chosen accounting/payroll software isn’t listed here in this blog, we advise that you contact that software immediately to find out their STP status! [/highlight]

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How to check if an ABN is the real deal

Whether you’re a business owner doing your own books or a bookkeeper, from time to time it’s necessary to check an entity’s Australian Business Number (ABN) for authenticity. Sometimes you just aren’t sure if the ABN is correct or you may wish to check if a supplier is registered for GST (and other legal details). So how do you check the status of an entity’s ABN? Currently there are 4 options available to you.

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