Factory News

News and commentary to help your finances grow

Are you ready for Single Touch Payroll?

April 1, 2019
If you are an employer you are probably aware that by 1 July this year you will need to set up and start reporting payroll to the ATO in real time (i.e. on the day of payment). If you are not aware then you need to take action now. Single Touch Payroll (STP) reporting is currently available through payroll, accounting and business management software. Most software providers are offering STP-enabled products. Some providers have asked us for a later start date (a deferral) for their employer clients to report through STP. If you’re not sure whether your software has a deferral, check with your provider. A number of No-cost and low-cost Single Touch Payroll solutions (less than $10 per month) will be available in the 2018-19 financial year for micro employers (four or less employees). Please contact us at The Number Factory 03 4367 7443 if you need assistance is either setting up payroll software, or if you would like to discuss package options for us to manage it for you How STP works STP works by sending tax and super information from your payroll or accounting software to the ATO as you run your payroll. When you start reporting: you will run your payroll, pay your employees as normal, and give them a payslip your pay cycle does not need to change (you can continue to pay your employees weekly, fortnightly or monthly) your STP-enabled payroll software will send us a report which includes the information we need from you, such as salaries and wages, pay as you go (PAYG) withholding and super information see the employer reporting guidelines for a full list of payments that must be reported through STP. You will be reporting super liability information through STP for the first time. Super funds will also be reporting to us. They’ll let us know when you make the payment to your employees’ chosen or default fund. This is an important step toward making sure employees are paid their correct entitlements. The way STP information is sent will depend on the software you use. STP reporting will be offered in one of the following ways with: an end-to-end solution, which allows you to run your payroll and send the STP information directly to us from your software a solution which allows you to run your payroll and send the STP information through a third party sending service provider (SSP) which is integrated into your software a solution that allows you to run your payroll and requires you to send the STP information through a third party sending service provider (SSP) outside your software. ATO systems will match the STP information to our employer and employee records. Your employees will be able to see their year-to-date tax and super information in ATO online services, which can only be accessed through myGov. Their data is updated every time you report (each pay day for most employers). Without STP reporting, employee data is only reported at the end of the financial year.

Have you logged into myGov lately?

March 22, 2019
This year we have see many changes already into the way the Government are collecting real time information. The roll out of Single Touch Payroll (more info on STP’s coming very soon) being one of the biggest changes in the last financial year, and will eventually be applicable to all employers in the coming months. So what does myGov have to do with all of this? Well, your employer will eventually be on the STP system (some may already be on it) and your myGov will show you each pay from your employer in real time, meaning at anytime you can see what your income to date is. At tax time this will also mean Income Statements (AKA Group Certificates/PAYG Summaries) will be readily available for you to download, and/or your Accountant will also have access to them via their Agent Portal. Other things you can see via your myGov include, Notice of Assesments (NOA) and any tax liabilities you may have.

FBT (Fringe Benefits Tax)

March 19, 2019
FBT (Fringe Benefits Tax) Make a note in your Diary for March 31st time to check your Odometers. Please read carefully through the attached letter (below) for some detailed information regarding FBT, especially if you are new to Business, and complete the attached form if it applicable for you to do so. Any further queries do not hesitate to contact our Office. Kind Regards, The Number Factory. FBT Letter FBT FORM 2019