FILE REF: [FILE NO.] TITLE: Single Touch Payroll Working Group meeting VENUE: DATE OF MEETING: Teleconference Date: Friday 24 July 2015 Time: 10.00am to 11.00am (AEST) CHAIR: Michael Gleeson (ATO) FACILITATOR: Martin Mane (ATO) CONTACT: Kate French CONTACT PHONE: 02 4923 1134 0439 422 952 NEXT MEETING: Teleconference 31 July 2015 KEY MESSAGES The ATO is working with treasury in looking to firm up timing of a government decision with details of the pilot including the scope and how it would run Treasury and gov – timing of when pilot begins needs to be considered – 1 July 16 – developers and ATO may do be ready to start If clearer info comes from treasury we will get it out to you Taxonomy and data definitions, want to get something out to this group Aiming for a mid-August workshop with SuperStream input in how pilot would run – more information on this will be sent next week. Detailed design for drop 1 and some for drop 2 – onboarding screen design for ATO online – will provide screen shots of what we have designed Employers will have an obligation to report super payments to the ATO – originally this was embedded within payroll reporting however the move away from real time event based payments mean another solution to capture this info is required The current contributions transaction report is a super stream B2B ie employer to super fund report - not clear if ATO can leverage off this report – legally or otherwise so a separate report is being considered A separate report means multiple touch rather than single touch, also super reporting and payments can be from accounting software, third parties and clearing houses not necessarily payroll software. Need clarification and definition of what confirmation of a superannuation payment is, keep simple if possible ie leverage off the system that is in place – SuperStream, can the funds provide this detail as they are the final source of what has been applied to member accounts CLASSIFICATION: UNCLASSIFIED Need to explore practical implications – user experience – testing solutions an employer could use eg where there are third party payments ATO trending toward real time reporting for SMSF investment data - is there a similar direction possible for contributions information Discussion around error reporting, what if super stream has errors and ATO does not or visa versa, many errors occur because of closed accounts but there are others as fund are extending business rules and introducing proprietary formats. There will be considerable complexity and issues if trying to understand and keep in sync all the types of error and messages, better to look at the basic outcome required and design for that ie what has actually been credited to a members account. ATO needs to consider change management as major changes to business processes for employers will be required. Not all payroll staff are skilled, requires investment by business in these staff as they will need to get payroll more accurate up front rather than rely on end of year processes. How the client chooses to use software is outside the developers control – some employers are contemptuous of compliance, but there is an opportunity to improve business practices ATO needs to start doing the change management side now – SWD need to understand what is and will be occurring so they can guide the compliance changes and communications to business ACTION ITEMS to be added to and updated ID Action item Status Update Open items 1 2 5 6 7 Provide a roadmap of known items of change for the ATO to include future potential STP scope, SuperStream milestones, changes to myGov/ATO Online etc. Advise who is liable where there is a fraudulent log on to myGov and e.g. Super Choice nomination is made to an SMSF. Advise the legal position on what action is required where data goes to the wrong employer. Raise software developer community view with Treasury that greater value can be provided to businesses with a change in secrecy provisions. E.g. it would provide greater value if, in wholesale onboarding, employee relationship with a particular superfund could be validated. Raise software developer community view of benefit of broadening use of myGov credential CLASSIFICATION: UNCLASSIFIED In progress. Seeking latest pack developed for Board of Taxation In progress. Pending advice. In progress. Exploring process requirements to deal with situations where data is sent to and accepted by the incorrect employer. In progress. View to change secrecy provisions have been raised with Treasury. Awaiting feedback. In progress. Discussions have commenced within the ATO to consider the user experience and security. ID Action item Status Update with DTO. 9 Work through issues associated with RFBA and bring options back to working group. 10 Define what constitutes the need to report to the ATO and advise working group. Is it a withholding event? Would Super contribution only be reported? What if there is salary sacrifice amount that impacts taxable income? Completed items 3 Advise the electronic record keeping requirements for TFN Dec. 4 Advise whether there is any possible situation where data changed by employer will update ATOheld data – formal response based on law required. CLASSIFICATION: UNCLASSIFIED In progress. Current view is that an additional service will be required to allow reporting of RFBA amounts outside of a normal payroll event. In progress. The ATO aims to realise an enhancement to Australian payroll accounting systems. New technologies exist to support frequent direct reporting and tax transparency between the ATO and the employer community. The STP program intends to establish a B2G reporting requirement surrounding the following liabilities: 1 – Employee PAYGW liability derived from the salary payments made by an entity to their staff 2 – ATO Super have defined a requirement to have also have both Super entitlement information reported to the ATO on event basis. 3 – ATO Super further intends to collect confirmation of Super payments from employers, driven by the actual payment event to a super fund. The correlation between items 2 and 3 will support ATO Super to define a policy around the implementation of SGC. 4 – Further payroll items that cannot be deemed frequently by event basis like RFBA and associated Salary Sacrifice calculations have been drawn out from the proposed STP payroll event. 5 - A purpose built independent service “STP Payment Summary Update” Event will need to be developed to ensure the capture of payroll related information that falls out of the norm. Completed. Depends on law change and what status the ATO Online on-boarding form takes. If it replaces ‘a TFN declaration given to a payer’, then a payer should not need to keep a record of it as they won’t ever have been given a TFN declaration to retain. Otherwise, the existing law applies and a payer must retain the declaration until the second 1 July after the day on which the declaration ceases to have effect. Completed. The current design does not support any situation where the updating of employee-related data by an employer in their BMS updates ATO-held information about that employee e.g. changing their address/name etc. ID Action item Status Update 8 Check whether specifics of offset details are currently on variation forms 11 Arrange meeting with software providers who allow amendments to payroll events e.g. where it is possible to reverse/delete. Participants to be identified by ABSIA. Find out how many amended payment summaries the ATO receives each year. Explore options for services that can be provided to enable employers to reconcile ATO. Completed. NAT 3092 Tax file number declaration and NAT 3093 Withholding declaration reviewed for specific offset variation labels. 11 new elements were extrapolated and included into the STP onboarding taxonomy to include upward, downward and seniors pensioners variation offsets. Completed. Scheduled for 9 July 2015. Outcomes currently being documented. 12 13 CLASSIFICATION: UNCLASSIFIED Completed. In 2014 there were 268,245 payment summaries amended by payers – representing ~2% Completed. Functionality to enable employers to reconcile information held by the ATO with that in their software is currently being designed.
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