Reporting to the ATO and Other Agencies

When using MYOB Advanced Payroll in Australian jurisdictions, you can generate files for electronic submission to the Australian Taxation Office (ATO).

TFN Declaration

Note: You only need to submit a TFN declaration if you haven't yet transitioned to STP Phase 2. For help understanding what's changd with STP Phase 2 and how to transition, see our online Single Touch Payroll Phase 2 help pages.

All information regarding an employee's Tax File Number declaration is entered on the Taxation tab of the Pay Details (MPPP2310) form. The fields on this tab are laid out in a similar configuration to the printed TFN form. See the ATO website for information on filling in the TFN declaration.

The information entered for employees can then be used to produce TFN declarations by running the TFN Declaration (MPPP6000) report, or the TFN can be submitted to the ATO electronically by selecting TFN Declaration > Submit TFN Declaration from the Pay Details form toolbar.

Note: TFN declarations are submitted using Single Touch Payroll (STP). The STP batch that a TFN declaration is included in will be displayed on the Pay Details form.

WorkCover

MYOB Advanced Payroll calculates the WorkCover levies that must be paid to the WorkCover insurer as part of each pay run.

WorkCover rates are set up on the WorkCover Rates (MP.PP.30.10) form and then applied to employees (via their Employee Class).

Pay items can be set to be liable for WorkCover on the Liabilities tab of the Pay Items (MPPP2210) form. When a WorkCover-liable pay item is transacted, its amount is added to the total liable amount for WorkCover. WorkCover amounts are then calculated using the WorkCover rates applied to employees.

All WorkCover information can be historically reported via the WorkCover History (MPPP4500) form. This form shows a filterable list of pay items from completed pays, showing whether each item was liable for WorkCover and the WorkCover levy payable for each item.

State Payroll Tax

Payroll tax entries are set up for each state that your organisation has staff in on the Payroll Tax (MPPP3020) form.

Configuration options relating to payroll tax are available on the Payroll Preferences (MPPP1100) form and the Payroll Tax tab of the Pay Details (MPPP2310) form.

Payroll tax is calculated each pay, based on those pay items that are marked as being liable for payroll tax on the Pay Item Liabilities (MPPP1025) form.

You can generate monthly or annual payroll tax returns using the Payroll Tax Liability (MPPP6210) report. MYOB Advanced Payroll calculates tax amounts based on the rates and thresholds for the state; these amounts can then be used to fill in a payroll tax return.

See "Payroll Tax Rates and Thresholds" on the ATO website for current information on all states' payroll tax structures.

Payment Summaries

MYOB Advanced Payroll can generate payment summaries for all employees. A Payment Summary Type is selected for each employee on the Settings tab of the Pay Details (MPPP2310) form (currently only the Individual Non-Business type is available).

Pay item types are assigned a default Payment Summary Category via their pay item type on the Pay Item Types (MP.PP.21.60) form; the category can be overridden by selecting a different one on the Pay Item Liabilities (MPPP1025) form. The category determines what section of the payment summary pay items will be included in (if a pay item has no category, it will not be included in payment summaries). The following categories are available:

Allowances
CDEP Payments
Exempt foreign employment income
Gross Payments
Lump Sum A
Lump Sum B
Lump Sum D
Lump Sum E
Reportable fringe benefits amount
RESC Payments
Union/Professional association fees
Workplace giving

Note: See the ATO website for information on the different payment summary categories and what values should be included in them.

Payment summary batches are created for a financial year on the Create Payment Summary Batch (MPPP5003) form. Each batch consists of all payments made in the selected financial year that used pay items with a payment summary category assigned. Once created, batches can be processed on the Manage Payment Summary Batch (MP.PP.50.04) form and payment summary documents can be distributed to employees on the Distribute / Print Payment Summaries (MPPP5211) form.

Single Touch Payroll

Single Touch Payroll (STP) is an ATO requirement for reporting payroll data, which allows you to report to the ATO directly from your payroll software at the same time as you pay your employees. STP is required from 1 July 2018 for employers with 20 or more employees, and from 1 July 2019 for employers with 19 or fewer employees. MYOB Advanced Payroll supports STP reporting, once the system has been set up to use it—see "Single Touch Payroll". Once STP has been set up, you no longer need to produce payment summaries.

Once STP has been set up, a Single Touch Payroll batch is created and submitted to the ATO automatically every time a pay run is completed. Submitted batches can be viewed on the Manage STP Submissions (MPPP5019) form, where you can view the details of each batch and check their submission statuses.