Payroll Reporting
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TABLE OF CONTENTS ............................................................................................................................... 4 Glossary ........................................................................................................................................................ 6 Definitions ..................................................................................................................................................... 7
1. Introduction ............................................................................................................................................... 9
1.1 Purpose ........................................................................................................................................ 9
Disclaimer ............................................................................................................................................. 9
1.2 Audience ....................................................................................................................................... 9
1.3 Document context ......................................................................................................................... 9
1.4 What is Single Touch Payroll? .................................................................................................... 10
1.5 The law for Single Touch Payroll ................................................................................................ 10
1.6 How Single Touch Payroll works ................................................................................................ 10
1.7 Scope .......................................................................................................................................... 11
2. Hire to retire ........................................................................................................................................ 16
2.1 Business processes .................................................................................................................... 16
2.2 Single Touch Payroll reporting services ..................................................................................... 17
3. Business rules for payroll reporting .................................................................................................... 20
3.1 Payroll payments ........................................................................................................................ 20
3.1.1 Regular pay cycle – Employer runs regular pay cycle ....................................................... 20
3.1.2 ABN / Branch / BMS ID / Payee payroll ID ......................................................................... 21
3.1.3 Out of cycle payment – Employer pays an employee outside of the regular pay cycle ..... 22
3.1.4 Remittance of PAYG withholding ....................................................................................... 23
3.1.5 Cessation ............................................................................................................................ 23
3.1.6 Allowances and deductions ................................................................................................ 23
3.1.7 Employment termination payments (multiple ETPs – primary key is payment date) ......... 29
3.1.8 ETP death benefits ............................................................................................................. 29
3.1.9 Payments made to employees posted to a foreign country ............................................... 30
3.1.10 Foreign employment income .............................................................................................. 30
3.1.11 Exempt foreign employment income .................................................................................. 30
3.1.12 Working Holiday Makers ..................................................................................................... 30
3.2 Fix ............................................................................................................................................... 32
3.2.1 What to fix ........................................................................................................................... 32
3.2.2 When an employer needs to report a fix ............................................................................. 32
3.2.3 Fixing reporting errors – employee data ............................................................................. 32
3.2.4 Fixing reporting errors – employer data .............................................................................. 32
3.2.5 Overpayment within a financial year ................................................................................... 33
3.2.6 Misclassification with no additional payment ...................................................................... 33
3.2.7 Where an employee is reported under the incorrect ABN or PAYG withholding branch ... 33
3.2.8 Full file replacement ............................................................................................................ 34
3.2.9 Retroactive payroll adjustment/fixes ................................................................................... 34
3.2.10 Disaster Recovery .............................................................................................................. 34
3.3 Finalisation — Declaration the employer has provided all information for an employee for the financial year ......................................................................................................................................... 35
3.3.1 Finalisation during the financial year .................................................................................. 35
3.3.2 Finalisation after the end of the financial year .................................................................... 36
3.3.3 Reportable fringe benefit amount /Reportable employer superannuation contributions .. 366
3.3.4 Lump sum E ...................................................................................................................... 377
3.3.5 Lump sum D ..................................................................................................................... 377
3.3.6 Amended finalisation after the end of the financial year ................................................... 377
3.3.7 Overpayment identified after EOFY .................................................................................. 388
3.4 Transition to Single Touch Payroll during a financial year ....................................................... 399
3.4.1 Transition into Single Touch Payroll ................................................................................... 39
3.4.2 Transition between BMS during financial year ................................................................... 39
3.5 Commencement of a new employee ........................................................................................ 400
SINGLE TOUCH PAYROLL ‘PAYROLL REPORTING’
BUSINESS IMPLEMENTATION GUIDE (SINGLE TOUCH PAYROLL BIG)
VERSION 3.0 9 MAY 2018 UNCLASSIFIED PAGE 5 OF 68
3.5.1 Commencement date ....................................................................................................... 400
3.5.2 TFN declaration in payroll event ....................................................................................... 400
4. Business Response Messaging ....................................................................................................... 422
4.1 Context on timing and transmission of business response messaging ............................ 422
4.2 Business response message design principles .................................................................. 43
4.3 Meeting Single Touch Payroll obligations by addressing business response messages .. 43
4.4 Business response message details table ......................................................................... 44
5. Authorisations and declarations ......................................................................................................... 48
5.1 Authentication and the Final “Hop” ................................................................................................ 488
5.2 Roles ............................................................................................................................................. 488
5.3 Declaration statement Matrix ........................................................................................................... 49
5.3.1 Declaration Statements ................................................................................................................ 50
5.4 Further information .......................................................................................................................... 65
6. Scenarios ............................................................................................................................................ 66
1. Introduction ............................................................................................................................................... 9
1.1 Purpose ........................................................................................................................................ 9
Disclaimer ............................................................................................................................................. 9
1.2 Audience ....................................................................................................................................... 9
1.3 Document context ......................................................................................................................... 9
1.4 What is Single Touch Payroll? .................................................................................................... 10
1.5 The law for Single Touch Payroll ................................................................................................ 10
1.6 How Single Touch Payroll works ................................................................................................ 10
1.7 Scope .......................................................................................................................................... 11
2. Hire to retire ........................................................................................................................................ 16
2.1 Business processes .................................................................................................................... 16
2.2 Single Touch Payroll reporting services ..................................................................................... 17
3. Business rules for payroll reporting .................................................................................................... 20
3.1 Payroll payments ........................................................................................................................ 20
3.1.1 Regular pay cycle – Employer runs regular pay cycle ....................................................... 20
3.1.2 ABN / Branch / BMS ID / Payee payroll ID ......................................................................... 21
3.1.3 Out of cycle payment – Employer pays an employee outside of the regular pay cycle ..... 22
3.1.4 Remittance of PAYG withholding ....................................................................................... 23
3.1.5 Cessation ............................................................................................................................ 23
3.1.6 Allowances and deductions ................................................................................................ 23
3.1.7 Employment termination payments (multiple ETPs – primary key is payment date) ......... 29
3.1.8 ETP death benefits ............................................................................................................. 29
3.1.9 Payments made to employees posted to a foreign country ............................................... 30
3.1.10 Foreign employment income .............................................................................................. 30
3.1.11 Exempt foreign employment income .................................................................................. 30
3.1.12 Working Holiday Makers ..................................................................................................... 30
3.2 Fix ............................................................................................................................................... 32
3.2.1 What to fix ........................................................................................................................... 32
3.2.2 When an employer needs to report a fix ............................................................................. 32
3.2.3 Fixing reporting errors – employee data ............................................................................. 32
3.2.4 Fixing reporting errors – employer data .............................................................................. 32
3.2.5 Overpayment within a financial year ................................................................................... 33
3.2.6 Misclassification with no additional payment ...................................................................... 33
3.2.7 Where an employee is reported under the incorrect ABN or PAYG withholding branch ... 33
3.2.8 Full file replacement ............................................................................................................ 34
3.2.9 Retroactive payroll adjustment/fixes ................................................................................... 34
3.2.10 Disaster Recovery .............................................................................................................. 34
3.3 Finalisation — Declaration the employer has provided all information for an employee for the financial year ......................................................................................................................................... 35
3.3.1 Finalisation during the financial year .................................................................................. 35
3.3.2 Finalisation after the end of the financial year .................................................................... 36
3.3.3 Reportable fringe benefit amount /Reportable employer superannuation contributions .. 366
3.3.4 Lump sum E ...................................................................................................................... 377
3.3.5 Lump sum D ..................................................................................................................... 377
3.3.6 Amended finalisation after the end of the financial year ................................................... 377
3.3.7 Overpayment identified after EOFY .................................................................................. 388
3.4 Transition to Single Touch Payroll during a financial year ....................................................... 399
3.4.1 Transition into Single Touch Payroll ................................................................................... 39
3.4.2 Transition between BMS during financial year ................................................................... 39
3.5 Commencement of a new employee ........................................................................................ 400
SINGLE TOUCH PAYROLL ‘PAYROLL REPORTING’
BUSINESS IMPLEMENTATION GUIDE (SINGLE TOUCH PAYROLL BIG)
VERSION 3.0 9 MAY 2018 UNCLASSIFIED PAGE 5 OF 68
3.5.1 Commencement date ....................................................................................................... 400
3.5.2 TFN declaration in payroll event ....................................................................................... 400
4. Business Response Messaging ....................................................................................................... 422
4.1 Context on timing and transmission of business response messaging ............................ 422
4.2 Business response message design principles .................................................................. 43
4.3 Meeting Single Touch Payroll obligations by addressing business response messages .. 43
4.4 Business response message details table ......................................................................... 44
5. Authorisations and declarations ......................................................................................................... 48
5.1 Authentication and the Final “Hop” ................................................................................................ 488
5.2 Roles ............................................................................................................................................. 488
5.3 Declaration statement Matrix ........................................................................................................... 49
5.3.1 Declaration Statements ................................................................................................................ 50
5.4 Further information .......................................................................................................................... 65
6. Scenarios ............................................................................................................................................ 66