Single Touch Payroll – The Good, The Bad & The Opportunity

GovReports – Leading PLS Innovator Business/ Taxpayers Australian Taxation Office BAS/Tax Practitioners Accountants ASIC Corporate/ Listed Companies State Revenue Office Other Govt. Agencies Investor © 2019 Impact Management Group Pty Ltd All Rights Reserved.

STP – Employers/Employees • ATO Resource to explain STP for Employers and Employees • Current version is still including 1 July 19 as start date for under 19 employees • With a myGov account employees will be able to view YTD tax and super online • myGov will provide the Payment summary to employees • Tax information will be prefilled into tax preparation software © 2019 Impact Management Group Pty Ltd All Rights Reserved.

What Single Touch Payroll means for Tax Practitioners Single Touch Payroll is the next step in payroll reporting. Payroll compliance included in natural business practices It changes how business reports employee’s payroll information First stage started 1 July 2018 - employers with 20 or more staff. It is software based No Lodgements via portal – Lodgements available thru GovReports © 2019 Impact Management Group Pty Ltd All Rights Reserved.

Extension of Single Touch Payroll Legislation before parliament extends STP to all employers Employers with under 20 staff will be required to report via STP ATO will not force employers to purchase software ATO asked developers for low cost solutions Micro employers (1 to 4) will have options (e.g. allowing agents to report quarterly) Exemptions may be available from ATO © 2019 Impact Management Group Pty Ltd All Rights Reserved.

Start Reporting through STP STP reports employee’s tax and super to ATO on or before each pay day Send via STP-enabled payroll software Employees view year-to-date information via MyGov Employers report super liability and super funds will report payment of liability STP replaces payment summaries and PSAR © 2019 Impact Management Group Pty Ltd All Rights Reserved.

STPProcess • Check Employee Details (must have correct details to lodge) • TFN • Address • Phone number • Date of birth • Employee ID (unique number) • No Change to payroll timing (Pay Event) • A PayEvent must contain at least one Employee record © 2019 Impact Management Group Pty Ltd All Rights Reserved.

STPProcess STP lodgment ‘Pay Event’ • YTD Wages every Payrun • Payroll categories matched to ATO • Required to report on or prior to pay day. • Micro employers may be lodging less frequently STP End of Year • Advise ATO of Final Pay Event • ATO send Payment Summaries to MyGov © 2019 Impact Management Group Pty Ltd All Rights Reserved.

GovReports STP Solutions To lodge ATO reports including STP - ATO nomination is required. AUSkey is not required. ATO nomination can be done through either ATO access manager or via telephone. If Tax or BAS intermediary is lodging behalf of their client then client’s authority is required for their audit purposes. © 2019 Impact Management Group Pty Ltd All Rights Reserved.

STPProcess Authorities • The STP pay event is an approved form submitted to the Commissioner of Taxation, and requires the following each time it is lodged: • a declaration that the information contained in the approved form (the STP pay event or update event) is ‘true and correct’ • the declarer is authorised to lodge the approved form. © 2019 Impact Management Group Pty Ltd All Rights Reserved.

STPProcess Authorities • If a registered agent reports through STP for an employer, they can obtain written authorisation to make this declaration through an annual agreement. • Subject to eligibility criteria. Employer must not: • Have any overdue activity statement lodgements • Have any outstanding debts, unless covered by a payment arrangement • Currently be or have been the subject of ATO compliance activity for PAYG withholding within last 2 years • Directors been subject to a ‘Director Penalty Notice • An authority must be reviewed and signed by an employer and their registered agent every 12 months or any time there has been a significant change in the industrial relations, taxation or payroll process. © 2019 Impact Management Group Pty Ltd All Rights Reserved.

What has been our Experience Good • Streamlined Efficiency • Natural Business Process • ATO’s current approach Bad • Payroll not consistent • Clients reticence/fear • Doing the wrong thing • Client fears loss of control • Big change to IT (skill gap) • Compliance costs © 2019 Impact Management Group Pty Ltd All Rights Reserved.

Opportunities • As ‘Trusted Advisor’ • help client overcome their fears through Education • Show client: • the ease of adding compliance to their natural business process • Without undue stress streamlining business efficiency . • ATO estimates that: • 730,000 small business employ <19 • 450,000 small business have 4 or less employees • 300,000 small business are micro employers (1-4) not using any accounting software © 2019 Impact Management Group Pty Ltd All Rights Reserved.

GovReports Single Touch Payroll Solutions • 1. GovReports STP compliance options for each pay cycle: • Data entry the employees and their pay details directly online to create and lodge payrun to ATO. Rollover option is available for repeat on each pay cycle. • Upload Payrun in CSV file format or • Payrun upload in XML and or other file formats will be added over time © 2019 Impact Management Group Pty Ltd All Rights Reserved.

GovReports Single Touch Payroll Solutions • Single Touch Payroll module is included in all Savvy and On-Demand packages. • Savvy - Unlimited lodgements of STP and all compliance forms included in the professional packages • On Demand - Low annual subscription fee with pay per lodgement. © 2019 Impact Management Group Pty Ltd All Rights Reserved.

GovReports Option 2 Interactive Accounts Manager • GovReports IAM is a standalone simple application with direct compliance lodgement to ATO. • Account access to both Business Owner & Accountants • Data ownership - Business owner • Subscription ownership- Either Accountant or Business Owner • Accountants get 30% discount on retail package • Super easy to use and quick to comply with STP • Packages • IAM –STP: Manual data entry of payroll details or upload of data in CSV • IAM –Business : IAM – STP plus ledger with ATO reports & lodgements © 2019 Impact Management Group Pty Ltd All Rights Reserved.

IAM - STP Nomination App Stores Install Sign In Access Manager Web Browsers Manage Employees Generate payrun Prepare Payslip • Payroll plus STP Lodgments • $99 (inc GST) Annual Fee • Both web & mobile apps access are proposed • Free trial available Business Lodgment Receipt © 2019 Impact Management Group Pty Ltd All Rights Reserved.

IAM - Business Nomination Card Set up Manage accounts since 2009-10 FY Trial available before commencing payment Access Manager Customers Quick Account Setup Lodgment Receipt Employees Suppliers Engagement Generate Reports Business Manage Transaction • Sales, Purchase, Banking, Payroll & Financial Reports • Compliance reports – Activity Statement, STP & Tax Returns • $149 (inc GST) Annual Fee • Free trial available Sign In Intermediary © 2019 Impact Management Group Pty Ltd All Rights Reserved.

IAM- Interactive Accounts Manager STP Solutions for Clients, Tax & BAS Agents • Benefits of using IAM • Secured cloud online application • Streamline the process of reporting to the ATO • User friendly interface • Ledger Access © 2019 Impact Management Group Pty Ltd All Rights Reserved.

Payroll in IAM • Employee • Add personal and contact details • On boarding • Payroll Events • Pay run • Employee Termination Payments • Lump Sum Payments • Payroll Payments © 2019 Impact Management Group Pty Ltd All Rights Reserved.

New PayRun • Complete details of pay run – income tax & superannuation calculated

Lump Sum and Termination Payments • Select Employee • Click on Payroll • Choose correct payment type • Complete Information as required © 2019 Impact Management Group Pty Ltd All Rights Reserved. © 2019 Impact Management Group Pty Ltd All Rights Reserved.

Lump Sum & Termination Payments • Lump Sum • A: Unused AL/ALL, LSL accrued 16/8/78 to 17/8/93 • B: Unused LSL prior 15/8/78 • D: Redundancy tax free portion • E: back pay prior years • Termination • Complete Information as required

Payslip

IAM Business – Basic Accounting Software • Banking • Bank Register – bank, credit card & cash accounts • Bank Feeds – rules & import statements • Sales • Customers, items • Create invoices, estimates, payment receipts • Purchases • Suppliers • Purchases register, expenses, payments made • Payroll • Employees • Payroll events, payments • Accounts • Chart of accounts, budget enteries • General Journal • Reports • Over 30 standard reports © 2019 Impact Management Group Pty Ltd All Rights Reserved.

STPProcess in GovReports? 3 SELECT STP - PAYROLL EVENT FORM 2 SELECT CLIENT 7 LODGE STP - PAYROLL EVENT TO ATO 1 AGENT LOGIN 8 CONFIRMATION WITH LODGEMENT RECEIPT FROM ATO 5 REVIEW / VERIFY / EDIT DETAILS 6 SEND FOR DIGITAL AUTHORISATION (OPTIONAL) 4 SELECT ENTRY TYPE [IMPORT OR MANUAL FILLING] © 2019 Impact Management Group Pty Ltd All Rights Reserved.

SELECT STP- PAYROLL EVENTS FORM

CHOOSE ENTRY TYPE EITHER CSV/IAM/Reckon IMPORT ORMANUAL FILLING

Single Touch Payroll – The Good, The Bad & The Opportunity