STP is mandatory from July 1, 2019 for all businesses.
How do I prepare my date file to ensure I'm ready for Single Touch Payroll?
Single Touch Payroll Functionality is available in Reckon Accounts Desktop 2018 R2 and later versions, and also Reckon Accounts Hosted.Solution:
In addition to payroll information that is supplied by the existing Payroll Module, STP Reporting will extract information from certain fields in Company Information and Employee Information. If these mandatory fields are blank the STP Report will not be accepted. STP will be reported to the ATO via
STP Portal (more details to come later).
You will also need to adjust your Allowances payroll items to comply with new differentiation required.
Below are outlined the mandatory fields for STP and where to update them.
Preparation 1: Check and Complete required Company Information fields.
Go to Company > Company Information;
Check and Confirm correct details for:
- Legal Name
- ABN (Tax Rego ID)
- Legal Address
- Legal City
- Legal Postcode
- Payroll Tax Form: Phone No
Preparation 2: Required fields under Employee Info:
Go to Employee Centre > right click employee > Edit Employee > Change Tabs to Personal Info, and check and confirm the fields:>
- Last Name and First Name
- Click on Address and Contact tab
- In Home Address, Address Line 1, enter number and street name
- In City, enter Suburb, Town or City
- In State, select the relevant State
- In Postcode, enter the Post Code
- Change tabs to Payroll and Compensation Info and go to Taxes
- In the Employee Tax Reference Number field, enter the Tax File Number
- Change tabs to Employment Info and go to the Employment tab
- In Emp No. field, enter the Employee Number you have assigned the Employee
Preparation 3: Adjustments to Tax tracking type in Allowances
STP requires you to differentiate between different allowance types. Reckon Accounts 2018 R1 introduced those different tax tracking types:
Allowances – Car
Allowances – Transport
Allowances - Laundry
Allowances - meals
Allowances - Travel
Allowances – Other
By default, when you upgrade any data file from 2017 and older versions into 2018 R1 and later, existing Allowances will be allocated to the tax tracking type ‘Allowances – Other’.
You will need to edit each of the existing Allowances Payroll Items that you may have and assign them to the appropriate tax tracking type. You may need to create new Allowances payroll items.
Your company file is now STP ready
Please refer to ATO guidelines in the link https://www.ato.gov.au/Business/Single-Touch-Payroll/Get-ready-for-Single-Touch-Payroll/ for more information.