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Re: Unwilling and not able to comply to STP

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Hi , currently we run MYOB V19 and are unable to upgrade for STP Compliance due to myob inability to upgrade multicurrancy and their continued software issues. This has caused untold stress not to mention loss of production and cost to lost hours. We have taken the hard stance that we will not be proceeding with STP in any form , from 3rd parties. When the ATO can provide the tools necessary to comply we will happely reconsider our firm stance. For immediatw future payment summeries will be lodged yearly as always
Im sure there are many in the same situation, please advise when ATO has avaliable integrated solutions enabeling us to comply. Not 3rd party
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Hi @Warlem01

 

Thanks for taking the time to provide us with feedback. Understanding how STP is working for businesses out there in the community is important to us.

We are committed to supporting business through the transition to STP and to do what we can to help with compliance. This is why we are in constant contact with software providers.

We have been talking with MYOB who have kept us updated about the issue you describe around multi-currency software. From what we understand, this product will be updated before the end of the year.

In the meantime, whilst this issue is being sorted out, we have granted a lodgement deferral until 31 December 2019 for users of MYOB multi-currency software. If you need more time to start STP reporting you can lodge a request for a further deferral using the ATO’s business portal.

Hopefully you will be able to work with MYOB to find the right solution. You might also want to check the MYOB community where people have been discussing this same issue.

Please keep posting your questions here on ATO Community and we will be happy to respond.

 

Jason Lucchese
Assistant Commissioner
Single Touch Payroll
Australian Taxation Office
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Hi @Warlem01

 

Thanks for taking the time to provide us with feedback. Understanding how STP is working for businesses out there in the community is important to us.

We are committed to supporting business through the transition to STP and to do what we can to help with compliance. This is why we are in constant contact with software providers.

We have been talking with MYOB who have kept us updated about the issue you describe around multi-currency software. From what we understand, this product will be updated before the end of the year.

In the meantime, whilst this issue is being sorted out, we have granted a lodgement deferral until 31 December 2019 for users of MYOB multi-currency software. If you need more time to start STP reporting you can lodge a request for a further deferral using the ATO’s business portal.

Hopefully you will be able to work with MYOB to find the right solution. You might also want to check the MYOB community where people have been discussing this same issue.

Please keep posting your questions here on ATO Community and we will be happy to respond.

 

Jason Lucchese
Assistant Commissioner
Single Touch Payroll
Australian Taxation Office

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Hi Warlem01, we had similar issues, infact we're running an older MYOB ver than you.  MYOB attempted [many times] to persuade us to upgrade to an extremely expensive subscription cloud-based service.  Charging $1000+ per year just to satisfy the ATO's STP requirement is in my view extortion.  Although I hear they have since reduced this to $654 per year.  That's still $654 every year just to lodge one's STP!  I've had several conversations with various people since STP is no more than a wrapper, rather like QT and I too suggested a year or so ago that they [ATO] create their own software, allowing us to simply enter the payroll data, just like we do with our BAS.  But alas, I'm told, despite this obvious solution the ATO have no plans to offer same to business and we must therefore use a 3rd party.  We've so far lodged 4 STP reports using an incredibly simple [and so far 'free] service called 'Payrollover'.  This seems, at least thus far, to have solved our problem reporting. 

Devotee Registered Tax Practitioner

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Accountants have always received extra time in assisting Business Owners lodge a Return or Statement.

 

Same Day Reporting for STP may well require a Business Owner to do their own reporting.

 

Did the ATO consider monthly/quarterly Payroll Reporting when processed by an Agent?

This is particularly relevant to micro businesses where many do not want involvement with STP nor have financial knowledge with regard to Payroll and are happy to have monthly/quarterly financial information.

 

I guess we wait and see how Business Owners go in processing their own STP.

Maybe an Agent reviews STP lodging on a quarterly basis when preparing a BAS or yearly when preparing the Tax Return.

 

Software Subscriptions may well have a benefit for a Business Owner in having a better understanding of a business.

 

I believe there is an opportunity cost or an increase in accountant fees of several thousand dollars for a micro Business Owner in STP. Some Accountant Firms are catering for STP so I gather that some Business Owners are prepared to pay. The Business Owners that I talk to are certainly concerned about the extra accounting fees and/or their opportunity cost due to STP. 

 

Duncan Smith

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AMF Bowling is efforting to maintain the customers’ satisfaction by taking the AMF Bowling Customer Feedback Survey at the survey

 

 

Initiate Registered Tax Practitioner

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Do you mean "Payroller"?

Devotee Registered Tax Practitioner

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@JasonLucchese @KylieS 

 

Jason,

 

I wish to reconcile the Amounts recorded in the ATO Report "STP reporting".

There are no totals in the ATO Report.

 

A check since 2000 before lodging a BAS/IAS for W1 and W2 would to to agree the Payroll Activity (Summary) to the Balance Sheet (PAYG W Payable) and P&L (Wages/Super) in MYOB. The process would still apply if a business owner/accountant/ BAS Agent uses Xero/QBO or other software.

The Payroll Activity (Summary) has totals for Wages, Tax Withheld and Super.

It is a simple exercise to agree the totals in the Payroll Activity (Summary) to the Balance Sheet and P&L.

 

A further reconciliation step under STP is to reconcile the MYOB records to the Gross Payments and PAYGW in the ATO STP reporting Report. Why does the ATO not provide totals in the STP reporting Report?

I have posted this question on the MYOB Community Forum recently - one would hope that MYOB would be talking to the ATO about a solution.  

 

Employers with larger with 20 or more employees had a commencement date of STP of 01 July 2018.

Some larger employers would now have been in STP for some 18 months (and at least some 6-12 months).

I understand that larger employers would not have issued Payment Summaries for FY19.

How did the larger employers/their BAS and Tax Agents finalise the Payroll in FY19 if one cannot agree the Payroll Records in the accounting software to the ATO STP reporting Report? Am I missing something?

 

Furthermore, I believe the ATO records in the STP reporting Report may have duplication for payroll reported to the ATO on the 15th or 16th January. Is the ATO aware of any issues?

Under STP, I stress the importance of the payroll information held by the ATO being correct. Please comment.

 

Duncan 

 

Devotee Registered Tax Practitioner

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Hi Duncan

the design of STP is that you do not reconcile to the ATO displayed information.

The source of truth is your payroll records.

Therefore do the things it looks like you are doing about making sure your records are right.

Then submit to the ATO.

The issue for me is whether the software is submitting the right information.  Your software should be (and most of them do) give you a report of what is being sent.

 

Noting the ATO disclosed Gross Wages and Gross tax that they receive in a normal payevent submission is not necessarily the complete story due to any changes.  it depends on the software.
It doesnt matter if the ATO has duplciation at this time, becuase the employee information is YTD, so the most current data is used for each employee.
The employer level totals are analysed by the ATO and they should be able to detect duplication.

So in our view, ensure your source of truth "the employers payroll records" are correct and then ensure your software is sending the right information.  The ATO information is constantly updated based on what you send them.   Dont try to reconcile the ATO figures

WWW.icb.org.au

 

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Hi @DuncanS,

 

Thanks for getting in touch, what @Matthew-at-ICB has said is correct. We’ve also checked in with our STP area and they have confirmed that there are no known issues currently.

 

Thanks, NateH

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@Matthew-at-ICB @NateH 

 

Matthew,

 

I was a ICB meeting towards the end of last year.

STP was talked about and I recall that one senior bookkeeper commented that more information is required from the ATO (my recollection was the comment was "we are running blind").

 

You comment not to agree the MYOB records to the ATO records.

If there are no errors/changes, why would this not be possible or required.

I still believe this to be a important step and am concerned that finalising Payment Summaries without reconciling to the ATO may be outside the Code of Professional Conduct.

STP is the first reporting to the ATO where I have used the accounting software - Same Day Reporting means a Bank Reconciliation and other checks/balances cannot be undertaken before reporting to the ATO.

Furthermore, STP and Same Day Reporting does not allow Agents extra time to lodge. Why?

 

Why would the ATO systems not be able to prepare a report with a total eg monthly/quarterly?

Why would the ATO systems not be able to prepare a Year to Date report?

 

Others have suggested that the ATO should have developed STP Reporting like the SBSCH.

One does wonder why this did not occur. 

 

My clients have used accounting software for business decision making for nearly 20 years since GST.

Same Day Reporting for those businesses with a monthly or quarterly accounting cycle has a opportunity cost.

I did read that the New Zealand STP model excludes those employers with less than $50,000 in annual PAYG -W from PayDay Reporting. Why was this not considered in Australia?

 

Same Day Reporting requires the business owner to enter Payroll in the accounting system (not recommended) or a substantial increase in accounting/bookkeeping fees.

I do not have contact with Accountants who wish involvement with Same Day Reporting.

 

My belief is that MYOB may have had a Payroll issue around the 15/16 January 2020.

 

One does hope the ATO can improve their computer systems to have some usable STP reports.   

 

Duncan

 

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