July 12, 2019 12:25 pm | by Fiona
All Not For Profit organisations reporting through Single Touch Payroll (STP), can choose how they would like to report fringe benefits amount (RFBA) and employer super contributions (RESC). These fringe benefits are reportable if the total taxable value exceeds the threshold set by the ATO.
There are two options available through STP:
OPTION 1– If you choose to provide your employee’s RFBA and RESC amounts at each payroll or update event, you’ll need to include the amount for each pay run event and amounts for each subsequent payroll event, even if the amounts remain the same.
If you choose to provide your employee’s RFBA and RESC amounts at each payroll or update event, you’ll need to include the amount for each pay run event and amounts for each subsequent payroll event, even if the amounts remain the same.
OPTION 2- You can choose to provide RFBA and RESC amounts through an update event as part of the finalisation process at the end of the financial year.
If you have chosen not to provide RFBA and RESC amounts through STP, you’ll need to:
- provide employees with this information on a payment summary
- submit a Payment summary annual report to ATO.
How to report fringe benefits and super with STP
If you use Single Touch Payroll (STP), your end-of-year reporting may be different for recording your employee’s:
- reportable fringe benefits amount (RFBA)
- reportable employer super contributions (RESC).
Where year-to-date RFBA and RESC are provided through a payroll or update event during the year, you’ll need to report these amounts for each following payroll event, even if the amounts remain the same.
Alternatively, you may report these amounts through an update event as part of the finalisation process at the end of the financial year.
Guides from the ATO
- FBT – a guide for employers: Chapter 5 – Reportable fringe benefits
- Reportable fringe benefits – facts for employees
- Calculating your FBT
- Reportable employer super contributions – for employers
For more information on the benefits of an ERP System in simplifying the STP reporting process – SapphireOne ERP, CRM, DMS and Business Accounting Software Application. Alternatively, contact our office on (02) 8362 4500 or request a demo.
January 30, 2019 1:20 pm | by Fiona
There has been a lot of talk and sometimes panic about single touch payroll, but many companies can simply update their existing software or choose a product by 1 July 2019. Single Touch Payroll is the next step in streamlining your payroll reporting with the Australian Taxation Office.
SapphireOne was the was first to achieve world-wide full accreditation on 1 May 2018 and our clients have been enjoying the benefits ever since.
STP requires businesses to report directly to the Australian Taxation Office after every pay run with wages, salaries, PAYG and super. STP is mandatory for employers with 20 or more employees from 1 July 2018 and from 1 July 2019 for employers with 19 or less employees.
Businesses will need to report to the Australian Taxation Office after every pay run instead of once a year. No more annual payment summary reports or employee payment summary reports as these are produced by the Australian Taxation Office. Employees simply log into myGov to view their information.
Australian Taxation Office – STP Integration into SapphireOne in a Few Easy Steps
Set-up your Auskey in SapphireOne
If you can’t find your Auskey, contact one of our support team and they will help you
If you have your Auskey:
Go to Utilies Mode, in the Top Menu Bar select Controls then Company
Click on the company in “Company Inquiry” Screen
Under Utilities Mode go to More Details
In SBR box on the bottom right type Auskey in “Keystore File”
Type Auskey password in “KeyStore Password”
Enter in the contact details and then press the upload button
Now you’re ready to run Single Touch Payroll.
In Payroll Mode
In the top tool bar select History then Pay Run Log/STP
Highlight the Pay Run you would like to submit to the ATO
Click on the bottom “STP Submit” button
Navigate back to the “Pay Run Log/STP” screen
Highlight the Pay Run you would like to process
Click on the “STP Get Result” button on the bottom left
You will receive a pop up “Alert” when the report has successfully submitted.
It’s that easy- SapphireOne has Single Touch Payroll and Accounting needs at your fingertips.
July 13, 2018 10:38 am | by Loren
At the end of financial year whether you are in Australia, New Zealand or anywhere in the world, all companies have tax obligations. The requirement to produce your Profit & Loss and Balance Sheet at the end of the financial year is mandatory for all businesses and organisations.
A financial year (or fiscal year, or sometimes budget year) is the period used by governments and their tax agencies for accounting and budget purposes, which vary between countries. It is also used for financial reporting by business and other organizations. Laws in many tax jurisdictions/countries require company financial reports to be prepared and published on an annual basis, but generally do not require the reporting period to align with the calendar year. The End of Financial Year (EOFY) is the date that marks the end of the financial year.
The calendar year is used as the financial year by about two thirds of publicly traded companies in the United States and for a majority of large corporations in the UK and elsewhere, with notable exceptions being in Australia, New Zealand and Japan. In Australia the End of Financial year generally falls on June 30th, New Zealand ends their financial year on March 31st. Some organisations and companies follow the USA end their financial year which is often on the same day of the week each year, for example, the Friday closest to 31 December. Under such a system, some fiscal years will have 52 weeks and others 53 weeks.
Taxation laws generally require accounting records to be maintained and taxes calculated annually, which usually corresponds to the financial year used by the government. The calculation of tax on an annual basis is especially relevant for direct taxation, such as company income tax. Many annual government fees and levies—such as Council rates, licence fees, etc. are also calculated on a financial year basis, while others are charged on an anniversary basis.
Many educational institutions have a financial year which ends during the summer to align with the academic year (and, in some cases involving public universities, with the state government’s financial year), and because the university is normally less busy during the summer months. In the northern hemisphere this is July to the next June. In the southern hemisphere this is calendar year, January to December. Some media/communication-based organisations use a broadcast calendar as the basis for their fiscal year.
Whatever the size of your business and tax obligations, you must report and pay any amount due to the ATO, this includes Superannuation and GST, VAT or Sales Tax reporting. It is essential to lodge tax return accurately in order to achieve the maximum business offset and possibly even receive a tax refund.
By managing everything from Financial Reporting, Inventory Control, Assets, Job Projects, Payroll/HR to Bank Reconciliations, SapphireOne ERP CRM DMS can give you more time to do the things that matter, such as developing new strategies and thinking in your business or organisation.
SapphireOne helps you to prepare and lodge tax return
SapphireOne helps you calculate GST and seamlessly lodge your Business Activity Statement (BAS) Standard Business Reporting (SBR2), pay employees and track your PAYG and Superannuation.
SapphireOne ERP CRM DMS can generate comprehensive reports to help you prepare and lodge tax return. Effortless reporting of SapphireOne can help you to get the right data at the right time including Year to Date (YTD) financial reports, PAYG payment summaries, Profit & Loss and Balance Sheet reports. That’s why Alison Phillips from Moyle Bendale Timber said in her testimonial that “SapphireOne is a RocketShip because of its excellent reporting.”
For a sneak peek at the full capabilities ERP, CRM, Accounting Software, Human Resources, Payroll, Assets and Document Management, check out SapphireOne and request a live demo, it is everything you’ll ever need to make your company management a success. Know more about us.