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Re: Payment summaries

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Hey guys,

 

Just finished listening to the latest ATO webcast, and there was a fair bit of chatter about the lodgement of payment summaries for micro businesses, those that are not yet required to register for STP.

 

What are other agents doing to lodge payment summaries on behalf of their clients? Are you filling and lodging paper payment summaries, or is there a way to enter as a pdf and then lodge via the portal?

 

We lodge for about 20 entities (a lot of mum-and-dad companies but other businesses with no more than 5 staff members). We have dropped our MYOB payroll solution as it was just far too expensive for once-a-year lodgement.

 

Thanks,

TLOWECO

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STP won't become mandatory for micros (less than 20), until 1 July 2019.

 

We are currently in a working group to determie exactly how micros and closely helds will approach this under STP, and whilst I can't elaborate too much at the moment, bitht he ATO and tax professional community are working on this right now and are aware of the challenges ahead.

 

Stay in touch

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I'm new

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STP won't become mandatory for micros (less than 20), until 1 July 2019.

 

We are currently in a working group to determie exactly how micros and closely helds will approach this under STP, and whilst I can't elaborate too much at the moment, bitht he ATO and tax professional community are working on this right now and are aware of the challenges ahead.

 

Stay in touch

Newbie Registered Tax Practitioner

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I just use the good old fashioned paper summaries supplied free of charge from the Ato...and I then just mail them in...they appear on pre-fill very quickly as well...

Devotee Registered Tax Practitioner

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@tloweco @GavinS

 

Single Tax Payroll will indeed be a challenge for micro businesses.

 

Has the STP legislation and Super Amnesty legislation been passed by Parliament?

 

One of the greater challenges under STP is same day reporting.

Weekly payers have over 4 times the amount of work than large employers who pay monthly.

 

Gavin,   There are many issues under STP that I would suggest are not logical.

 

There seems to be a term in STP called Natural Business Processes.

Those designing STP seem to think that business owners know how to run a payroll correctly and wish to report to the ATO without agent assistance.

Some business owners may but I would suggest than the majority do not.

 

Is a Natural Business Process say to prepare a monthly P&L within say 14 days of the end of the month?

A business may do a monthly IAS and quarterly BAS.

 

A Natural Business Process for a small business might be to prepare a quarterly P&L which aligns with the BAS and quarterly Super.

 

I would suggest that Same Day Reporting is not a Natural Business Process.

 

Lets say a business owner has 4 staff and pays by Internet banking weekly after close of business on a Wednesday.

One scenario is that the business owner emails a Tax/BAS Agent at say 6.20pm and advises of a payrun.

The Agent processes a payrun in the software and emails the client for authorisation.

This process is to occur some 13 times a quarter.

I have told my clients that I will not be working in the night time to comply with same day reporting.

The ability of business owners to correctly process payroll is doubtful and one would suggest that business owners do not want the responsibility. 

 

My understanding is that various senior accounting people/industry bodies have voiced their opinion that STP and in particular same day reporting is onerous for micro business.

 

Use of Technology and detailed payroll reporting clearly has benefits to the business owner and the ATO/Government.

 

A commonsense resolution may be that micro businesses should report payroll events at the time of completing a IAS/BAS.

 

Duncan

 

 

 

 

 

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I fully agree with Duncan, especially "A commonsense resolution may be that micro businesses should report payroll events at the time of completing a IAS/BAS" and moreso for closely held micro employers!

 

And I also have a question (Im a CA and tax agent):

 

I received an emailed list from the ATO of clients' STP statuses, including whether they are closely held. My list shows several clients as not closely held when in fact they are. So does this mean that those clients need to start STP now rather than waiting until 1 July 2020, and that they can't lodge quarterly at all?

 

Every time I call the ATO they say they have no record of this list! Noone is very helpful at all! I have called three times and spoken to three different people. They cant give me an answer.

 

 

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Hi @Caroline1,

 

Thanks for your query!

 

We've double checked information with a specialist area and they have advised if your client is considered a closely held payer (which can be self-determined by you as the tax agent), they will be exempt from STP reporting for the 2019-20 financial year. They will also be eligible to lodge quarterly via a tax agent from 1 July 2020. This information is available on our website Single Touch Payroll for closely held payers Factsheet.

 

Hope this helps, JodieH.

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