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09 May 2017

20170509 Draft business requirements - Doc 3 scenarios

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Scenarios

Contents 7.2 BMS Identifier .................................................................................................................................................................................................................. 4

7.2.1 Scenario 1 – Employer uses multiple BMS where an employee works across more than one BMS ....................................................................... 4

7.2.2 Scenario 2 – Employer changes BMS during a financial year .................................................................................................................................. 8

7.3 Branch Code ................................................................................................................................................................................................................... 15

7.3.1 Scenario 1 – Employee working for multiple branches of the one employer ....................................................................................................... 15

7.3.2 Scenario 2 – Incorrect Payer Branch Code ............................................................................................................................................................. 17

7.4 Commencement and termination of employee ............................................................................................................................................................ 19

7.4.1 Scenario 1 – Employee starts work for employer .................................................................................................................................................. 19

7.4.2 Scenario 2 – Employee leaves employment .......................................................................................................................................................... 26

7.5 Duplicate payroll event .................................................................................................................................................................................................. 31

7.5.1 Scenario 1 – Duplicate checking of payroll events ................................................................................................................................................. 31

7.6 Employee financials ....................................................................................................................................................................................................... 33

7.6.1 Scenario 1 – Employer pays a Lump Sum Payment in Arrears to an Employee .................................................................................................... 34

7.6.2 Scenario 2 – Employer reports an Employment Termination Payment (ETP) for an employee ............................................................................ 36

7.6.3 Scenario 3 – Employer reports multiple Employment Termination Payment (ETP) payment types for an employee ......................................... 39

7.6.4 Reportable Fringe Benefit Amount (RFBA) and Reportable Employer Superannuation Contributions (RESC) ..................................................... 46

7.6.5 Misclassification of payment ................................................................................................................................................................................. 52

7.6.6 Overpayment of employee after the end of financial year ................................................................................................................................... 55

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7.7 Full file replacement of payroll event ............................................................................................................................................................................ 60

7.7.1 Scenario 1 – Employer sends Full file replacement ............................................................................................................................................... 60

7.8 Payroll dates ................................................................................................................................................................................................................... 64

7.8.1 Scenario 1 – Payroll event using the Run Date/Time Stamp and Pay/Update Date .............................................................................................. 64

7.9 Payroll reporting employees .......................................................................................................................................................................................... 67

7.9.1 Scenario 1 – Employee leaves and re-enters employment with the same employer ........................................................................................... 67

7.9.2 Scenario 2 – Employee working under multiple Payee Payroll IDs........................................................................................................................ 71

7.10 Payroll reporting superannuation amounts ................................................................................................................................................................... 73

7.10.1 Scenario 1 – Super amounts in payroll .................................................................................................................................................................. 73

7.11 Tax file number declaration in a payroll event .............................................................................................................................................................. 78

7.11.1 Scenario 1 – Including the tax file number declaration in a payroll event ............................................................................................................ 79

7.11.2 Scenario 2 – Employee declaration for TFN declaration ........................................................................................................................................ 83

7.11.3 Scenario 3 – Payroll events and TFN exemption codes ......................................................................................................................................... 85

7.11.4 Scenario 4 – Employee is under 18 years of age. ................................................................................................................................................... 88

7.12 Registered Agent reporting ............................................................................................................................................................................................ 96

7.12.1 Scenario 1 – Registered Agents reporting for Withholding Payer Number (WPN) holders .................................................................................. 97

7.12.2 Scenario 2 – Registered Agents reporting for ABN holders ................................................................................................................................... 99

7.12.3 Scenario 3 - Validation of Registered Agents reporting ....................................................................................................................................... 103

7.12.4 Scenario 4 – Registered Agent declaration .......................................................................................................................................................... 109

7.13 Transitions .................................................................................................................................................................................................................... 112

7.13.1 Scenario 1 – Employer transitions to Single Touch Payroll .................................................................................................................................. 112

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7.14 Corrections ................................................................................................................................................................................................................... 120

7.14.1 Scenario – Materiality. ......................................................................................................................................................................................... 120

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7.2 BMS Identifier

Identification of payroll events from different payroll systems

Employers can use different payroll systems to pay employees. Single Touch Payroll will allow employers with different payroll systems to report

separately. Employers will need to consider when to configure a BMS identifier to ensure unique reports can be identified.

Scenario 1 - Employer uses multiple BMS where an employee works across more than one BMS

An employer that uses multiple business management systems (BMS) must configure the BMS identifier to ensure the payroll events can be uniquely

identified. An employer who does not configure the BMS identifier will have payroll information overwritten in ATO systems, and their employees will not

see all their payroll information via myGov.

Scenario 2 - Employer changes BMS during a financial year

An employer that changes BMS during a financial year will need to consider the impacts of reporting via Single Touch Payroll. The employer will choose

whether to migrate data to the new BMS or restart the employee year to date values at zero. The choice will impact on how the employer will need to

configure the BMS identifier to ensure the reports are correct.

7.2.1 Scenario 1 – Employer uses multiple BMS where an employee works across more than one BMS

Overview

As an STP-enabled employer I use multiple BMS with unique BMS Identifiers to provide my payroll event information to the ATO.

Detail

Druid’s Chemist operates several stores across NSW. All stores operate under the same ABN and branch number. The management of the pharmacy chain

has elected to manage separate payroll systems on a store-by-store basis. They will provide a payroll event to the ATO for each individual store.

Pharmacy 1: Druid’s Chemist Dapto.

Pharmacy 2: Druid’s Chemist Miranda.

Employee: Jules McDonald.

Jules works as a Pharmacist for Druid’s Chemist. He works alternate weeks at Dapto and Miranda.

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Scenario 1a - Employer uses multiple BMS where an employee works across different stores

Payroll event 1

Org Name: Druid’s Chemist Dapto

BMS ID: druid01-----------------------------------

First Name: JulesFamily Name: McDonaldGross Payment YTD: 300

Payroll event 2

Org Name: Druid’s Chemist Miranda

BMS ID: druid02-----------------------------------


Payroll event 3


BMS ID: druid01-----------------------------------


Payroll event 4


BMS ID: druid02-----------------------------------


Update event EOFY summary

Org Name: Druid’s ChemistDapto

BMS ID: druid01-----------------------------------



BMS ID: druid02-----------------------------------

First Name: JulesFamily Name: McDonalds

Final Event Indicator: Y

Org Name: Druid’s ChemistDapto

BMS ID: druid01-----------------------------------

First Name: JulesFamily Name: McDonaldFinal Event Indicator: Y

Org Name: Druid’s ChemistMiranda

BMS ID: druid02-----------------------------------


Payroll event 1 Jules works payroll period 1 at Dapto. A payroll event is provided to the ATO from Dapto with a BMS Identifier of ‘druid01’.

Payroll event 2 Jules works payroll period 2 at Miranda. A payroll event is provided to the ATO from Miranda with a BMS Identifier of ‘druid02’.

Payroll events 3 & 4 Payroll events 3 & 4 follow the fortnightly payment cycle.

Update event At the end of the financial year both Druid’s Chemist stores finalise their financial year by providing the ATO with a Final Event Indicator as part of an update event.

EOFY summary Two end of financial year (EOFY) summaries will be available to Jules McDonald to print and view via myGov.

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Scenario 1b - Employer uses multiple BMS where an employee works across different stores with no BMS Identifier

Payroll event 1


BMS ID: <null>-----------------------------------


Payroll event 2


BMS ID: <null>-----------------------------------


Payroll event 3


BMS ID: <null>-----------------------------------


Payroll event 4


BMS ID: <null>-----------------------------------




BMS ID: <null>-----------------------------------



BMS ID: <null>-----------------------------------

First Name: JulesFamily Name: McDonaldFinal Event indicator: Y

Overwrites Information provided by Druid’s Chemist Dapto

Overwrites Information provided by Druid’s Chemist Dapto


BMS ID: <null>-----------------------------------

First Name: JulesFamily Name: McDonaldFinal Event Indicator: Y

Payroll event 1 Jules works payroll period 1 at Dapto. A payroll event is provided to the ATO from Dapto with no BMS Identifier.

Payroll event 2 Jules works payroll period 1 at Miranda. A payroll event is provided to the ATO from Miranda with no BMS Identifier. The Gross Payment YTD for Dapto is overwritten by the Miranda amount.

Payroll events 3 & 4 Payroll events 3 & 4 follow the fortnightly payment cycle.

Update event At the end of the financial year, both Druid’s Chemist stores finalise their financial year by providing the ATO with a Final Event Indicator as part of an update event.

EOFY summary A single EOFY summary is available to Jules McDonald to print and view via myGov. This shows the data for Miranda only as this data was the last to be received by the ATO.

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Business Guidance

The ATO can receive employee YTD payroll information from an employer using multiple BMS.

PAYEVNT63 BMS Identifier is used to identify payroll reports where an employer utilises two or more BMS.

A payroll event sent to the ATO with no PAYEVNT63 BMS Identifier will be given the default PAYEVNT63 BMS Identifier of ‘BMSIDNOTPROVIDED’.

Any payroll events sent to the ATO with this default PAYEVNT63 BMS Identifier will be rejected.

At the publishing of the payroll event documentation, the update event and EOFY summary are still in design.

Business Rules

PAYEVNT63 BMS Identifier is an optional alpha numeric element.

PAYEVNT63 BMS Identifier must be unique within a PAYEVNT2 Payer Australian Business Number, PAYEVNT4 Payer Branch Code, and PAYEVNT63

BMS Identifier combination.

References

Business scenarios and guidance – Transition.

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7.2.2 Scenario 2 – Employer changes BMS during a financial year

Overview

As an STP-enabled employer, I change the BMS I am using during a financial year.

Detail

Jo Murray is the owner of Murphy’s Grill. He has decided after using the BMS called Duopoly from the start of the year to migrate to a new BMS called Petty Chase in October to utilise new features available in the software. The following scenarios show the implications of changing software:

Scenario 2a - Data migrated to new BMS, previously reported values zeroed out.

Scenario 2b - Data migrated to new BMS, NO BMS Identifier provided.

Scenario 2c - No data migrated to new BMS. YTD amounts start again from zero.

Scenario 2d - No data migrated to new BMS. YTD amounts start again from zero. No BMS Identifier provided.

Scenario 2e –No STP Reporting from old BMS. No data migrated to new BMS. YTD Amounts start again from zero. Starts STP in new BMS

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Scenario 2a - Data migrated to new BMS, previous reported values zeroed out

Payroll events 1 - 3July - September

Org Name: Murphy’s GrillBMS ID: Duopoly

-----------------------------------First Name: Jo

Family Name: MurrayGross Payment YTD: 7,500

Payroll events 4 - 12October - June

Org Name: Murphy’s GrillBMS ID: Petty Chase

-----------------------------------First Name: Jo




----------------------------------- First Name: Jo

Family Name: MurrayFinal Event Indicator: Y


-----------------------------------First Name: Jo


Update event


-----------------------------------First Name: Jo

Family Name: MurrayGross Payment YTD: 0

Data migration

Duopoly data to Petty ChaseOrg Name: Murphy’s Grill-----------------------------------

First Name: JoFamily Name: Murray

Gross Payment YTD: 7,500

Payroll events 1 – 3 Jo is paid through Duopoly until the new BMS is in place.

Data migration Payroll data is migrated from Duopoly to Petty Chase.

Update event An update event is sent to the ATO to zero out the YTD balances for Duopoly.

Payroll events 4 - 12 Jo is paid from payroll event 4 onwards through Petty Chase.

Update event At the end of the financial year, a Final Event Indicator is provided as part of an update event from Petty Chase.

EOFY summary A single EOFY summary is available to Jo to print and view via myGov.

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Scenario 2b - Data migrated to new BMS, NO BMS ID provided


DuopolyOrg Name: Murphy’s Grill

BMS ID: <null>-----------------------------------




Petty ChaseOrg Name: Murphy’s Grill

BMS ID: <null>-----------------------------------




Org Name: Murphy’s GrillBMS ID: <null>

-----------------------------------First Name: Jo



-----------------------------------First Name: Jo


Data migration

Duopoly data to Petty ChaseOrg Name: Murphy’s Grill

BMS ID: <null>-----------------------------------



Payroll events 1 – 3 Jo is paid through Duopoly until the new BMS is in place.

Data migration Payroll data is migrated from Duopoly to Petty Chase.

Payroll events 4 - 12 Jo is paid from payroll event 4 onwards through Petty Chase.

EOFY event At the end of the financial year a Final Event Indicator is provided as part of an update event from Petty Chase.

EOFY summary information A single EOFY summary is available to Jo to print and view via myGov.

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Scenario 2c - No data migrated to new BMS, employee YTD amounts start again from zero



-----------------------------------First Name: Jo



-----------------------------------First Name: Jo



-----------------------------------First Name: Jo



-----------------------------------First Name: Jo




-----------------------------------First Name: Jo




-----------------------------------First Name: Jo


Payroll events 1 – 3 Jo is paid through Duopoly up until the new BMS is in place.

Payroll events 4 - 12 Jo is then paid from payroll event 4 onwards through Petty Chase. His YTD totals will start from zero from Petty Chase.

Update event At the end of the financial year, Final Event Indicators are provided as part of an update event from both Duopoly and Petty Chase.

EOFY summary Two EOFY summaries are available to Jo to print and view via myGov.

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Scenario 2d - No data migrated to new BMS. Employee YTD amounts start again from zero. BMS Identifiers are not used.



BMS ID: <null>-----------------------------------




-----------------------------------First Name: Jo



BMS ID: <null>-----------------------------------



Overwrites information provided by DuopolyOverwrites information provided by Duopoly

Payroll event 4 - 12October - June


BMS ID: <null>-----------------------------------



Payroll event 1 - 3July - September


BMS ID: <null>-----------------------------------



Payroll events 1 – 3 Jo is paid through Duopoly up until the new BMS is in place. The payroll event has no BMS Identifier.

Payroll events 4 - 12 Jo is then paid from payroll event 4 onwards through Petty Chase. The payroll event has no BMS Identifier.

EOFY event At the end of the financial year Final Event Indicators are provided as part of an update event from both Duopoly and Petty Chase.

EOFY summary information

A single EOFY summary is available to Jo to print and view via myGov. This shows the data for Petty Chase only as this data was the last to be received by the ATO.

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Scenario 2e - No STP Reporting from old BMS. No data migrated to new BMS. YTD Amounts start again from zero. Starts STP Reporting in new BMS

Payroll events 1 - 3July – September

(No STP Reporting)

Payroll events 4 - 12October – June

(Commence STP Reporting)


-----------------------------------First Name: Jo




----------------------------------- First Name: Jo



-----------------------------------First Name: Jo


PSAR Sent Payment Summary


-----------------------------------First Name: Jo



-----------------------------------First Name: Jo



-----------------------------------First Name: Jo


Payroll events 1 – 3 Jo is paid through Duopoly a non STP-Enabled BMS. No payroll events are reported to the ATO.

Payroll events 4 - 12 Jo is paid from payroll event 4 onwards through Petty Chase an STP-Enabled BMS. Payroll events are reported to the ATO.

PSAR Sent At the end of the financial year payroll data from Duopoly is reported to the ATO as a PSAR via an EMPUDE file.

Payment Summary Murphy’s Grill provides a Payment Summary for payroll information

Update event At the end of the financial year, a Final Event Indicator is provided as part of an update event from Petty Chase.

EOFY summary A single EOFY summary is available to Jo to print and view via myGov.

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Business Guidance

An Employer can begin reporting employee YTD amounts from zero in the first payroll event and provide a payment summary and a payment

summary annual report to the ATO for amounts not reported through STP.

The ATO can receive Employee YTD payroll information from an employer using multiple BMS.

PAYEVNT63 BMS Identifier is used to identify payroll reports where an employer utilises two or more BMS.

A payroll event sent to the ATO with no PAYEVNT63 BMS Identifier will be given the default PAYEVNT63 BMS Identifier of ‘BMSIDNOTPROVIDED’.

Any payroll events sent to the ATO with this default PAYEVNT63 BMS Identifier will be rejected.

At the publishing of the payroll event documentation, the update event and EOFY summary are still in design.

Business Rules

PAYEVNT63 BMS Identifier is an optional alpha numeric element.

PAYEVNT63 BMS Identifier must be unique within a PAYEVNT2 Payer Australian Business Number, PAYEVNT4 Payer Branch Code and PAYEVNT63


References

Business scenarios and guidance – Transition.

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7.3 Branch Code

Employers who have chosen to organise their PAYG withholding into branches.

What is a branch?

A branch is formed where a business entity separately registers its branch to suit the structural, management and accounting arrangements of the

organisation.

Branching and STP

Entities already branched or who have decided to branch for PAYG withholding will report separately for each branch. This is separate to entities that run

multiple BMS under the same branch. See Business scenarios and guidance BMS identifier.

Entities that wish to report PAYG withholding under a branching arrangement must register to have a branch through the existing channels. For more

information see the ATO website.

7.3.1 Scenario 1 – Employee working for multiple branches of the one employer

Overview

As a Single Touch Payroll enabled Employer I must ensure my BMS includes a Payer Branch Code in my payroll event.

Detail

Richard’s Dictations employs Mavis Beacon under two separate branches. Mavis is listed in the BMS twice, one for each branch code.

http://ato.gov.au/

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Scenario 1 – Employee working for multiple branches of the one employer

Pay

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ran

ch C

od

e: 0

02

Pay

er B

ran

ch C

od

e: 0

01

Payroll event 1

Org Name: Richard’s Dictations-----------------------------------

First Name: MavisFamily Name: Beacon

Gross Payment YTD: 300

Payroll event 12



Gross Payment YTD: 1,200Final Event Indicator: Y

EOFY summary












Gross Payment YTD: 3,600Final Event Indicator: Y

Payroll events 1-11 Richard’s Dictations provides separate payroll events for each Payer Branch Code.

Payroll event 12 Richard’s Dictations provides separate payroll events for each Payer Branch Code. Each branch in payroll event 12 contains a Final Event Indicator for Mavis Beacon.

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EOFY summary Two EOFY summaries are available to Mavis Beacon to print and view via myGov.

Business Guidance

PAYEVNT4 Payer Branch Code is issued by the ATO upon registration.

Where an Employer is not branched, a PAYEVNT4 Payer Branch Code of ‘001’ must be provided.

Employers must know their PAYEVNT4 Payer Branch Code prior to submitting payroll events.

Branching under Single Touch Payroll for PAYG withholding is consistent with the current process for submitting payment summary information to

the ATO.

Employees whose employers are branched for PAYG withholding will continue to receive an EOFY summary for each branch.

Business Rules

PAYEVNT4 Payer Branch Code is a mandatory numeric data element.

PAYEVNT4 Payer Branch Code must be unique within a PAYEVNT2 Payer Australian Business Number.

PAYEVNT4 Payer Branch Code must be related to a PAYG role.

7.3.2 Scenario 2 – Incorrect Payer Branch Code

Overview

As an STP-enabled employer, I send an incorrect Payer Branch Code in a payroll event, and it is rejected.

Detail

Richard’s Dictations has multiple branches. Branch code 003 is registered for PAYG withholding and branch code 002 is registered for PAYG withholding.

Jim, the payroll officer, sends a payroll event with a Payer Branch Code of 002. This payroll event will be rejected because it relates to the wrong ATO

account.

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Scenario 2 – Incorrect Payer Branch Code

Payroll event 1

Org Name: Richard’s DictationsBranch Code: 002

-----------------------------------First Name: Mavis

Family Name: BeaconGross Payment YTD: 300

Payroll event 1 REJECTED

ERROR MESSAGE TO BMS

Payroll event 1 Payroll event 1 contains an incorrect Payer Branch Code.

Payroll event 1 Rejected

ATO detects the payroll event contains a Payer Branch Code that does not match a valid account. The payroll event is rejected, and an error message is sent back to BMS.

Business Guidance

PAYEVNT4 Payer Branch Code is issued to organisations that wish to sub-divide their activities in dealing with their tax obligations.

The PAYEVNT4 Payer Branch Code must be related to a PAYG withholding account for it to be valid for Single Touch Payroll.

Business Rules

PAYEVNT4 Payer Branch Code is a mandatory numeric data element.

PAYEVNT4 Payer Branch Code must be unique within a PAYEVNT2 Payer Australian Business Number.

PAYEVNT4 Payer Branch Code must be related to a PAYG account.

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7.4 Commencement and termination of employee

Reporting employee commencement and termination

Payee Commencement Date and Payee Cessation Date are used by the ATO to create or end a relationship between employees and employers. The relationship is used by ATO officers to quickly identify employees of employers. Reporting this information via Single Touch Payroll is optional but preferred.

7.4.1 Scenario 1 – Employee starts work for employer

Overview

As an STP-enabled employer, I submit a payroll event through my BMS for a newly hired employee.

Detail

Sam’s Superstore hires a new employee John Smith on 2/07/2018.

Scenario 1a - Employer provides the Payee Commencement Date on the first payroll event and all subsequent payroll events.

Scenario 1b - Employer provides the Payee Commencement Date on the first payroll event but not on subsequent payroll events.

Scenario 1c - Employer does not provide the Payee Commencement Date.

Scenario 1d - Employer provides the Payee Commencement Date on the subsequent payroll event.

Scenario 1e - Retail onboarding processed: Employer provides the Payee Commencement Date in the payroll event.

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Scenario 1a - Employer provides the Payee Commencement Date on the first payroll event and all subsequent payroll events

Payroll event 1

Org Name: Sam’s Superstore-----------------------------------

First Name: JohnFamily Name: Smith

Gross Payment YTD: 1,000Period Start Date: 31/07/2018

Commencement Date: 2/07/2018

Payroll event 12Payroll event 2









Payroll event 1 John starts work for Sam’s Superstore on 02/07/2018. His employer reports the Payee Commencement Date. The ATO records the commencement date and uses it as the start date for the relationship.

Payroll events 2-12 Sam’s Superstore sends the ATO the Payee Commencement Date throughout the year.

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Scenario 1b - Employer provides the Payee Commencement Date on the first payroll event but not on subsequent payroll events

Payroll event 1








Gross Payment YTD: 2,000Period Start Date: 31/08/2018Commencement Date: <null>




Payroll event 1 John starts work for Sam’s Superstore on 02/07/2018. His employer reports the Payee Commencement Date. The ATO records the commencement date and uses it as the start date for the relationship.

Payroll events 2-12 Sam’s Superstore reports the payroll event information.

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Scenario 1c - Employer does not provide the Payee Commencement Date

Payroll event 1











Payroll event 1 John starts work for Sam’s Superstore on 02/07/2018. His employer does not report the Payee Commencement Date. The ATO creates the relationship using the Period Start Date of the first payroll event 31/07/2018.

Payroll events 2-12 Sam’s Superstore reports the payroll event information.

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Scenario 1d - Employer provides the Payee Commencement Date on the subsequent payroll event

Payroll event 1













Payroll event 1 John starts work for Sam’s Superstore on 02/07/2018. His employer does not report the Payee Commencement Date. The ATO creates the relationship using the Period Start Date of the first payroll event 31/07/2018.

Payroll event 2 Sam’s Superstore reports the Payee Commencement Date. The ATO updates the relationship start date.

Payroll events 3-12 Sam’s Superstore sends the ATO the Payee Commencement Date throughout the year.

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Scenario 1e - Retail onboarding processed: employer provides the Payee Commencement Date in the payroll event

Retail Onboarding


TFN: 123456789Family Name: Smith

First Name: JohnReceived Date: 31/07/2018




First Name: JohnGross Payment YTD: 1,000




First Name: JohnGross Payment YTD: 12,000


Retail onboarding John submits TFN declaration to Sam’s Superstore through ATO Online. The ATO creates the relationship using the received date of the retail onboarding form.

Payroll event 1 John starts work for Sam’s Superstore on 02/07/2018. His employer reports the Payee Commencement Date. The ATO updates the relationship start date.

Payroll events 2-12

Sam’s Superstore sends the ATO the Payee Commencement Date throughout the year.

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Business Guidance

In the STP Data Definitions Payroll event and MST, PAYEVNTEE92 Payee Commencement Date is used to identify employees of employers. 032 Payee Commencement Date

The following points are relevant to these scenarios:

PAYEVNTEE92 Payee Commencement Date is a date field that the employer can provide to identify when a person starts paid employment.

ATO requires that a relationship be created between an employer and employee. The start date of the relationship can be established in various

ways:

o Use PAYEVNTEE92 Payee Commencement Date in the payroll event, if provided by the employer for the employee.

o Use the retail onboarding received date, if retail onboarding is processed before the first payroll event.

Employers can update the start date of the relationship after it was created by providing PAYEVNTEE92 Payee Commencement Date through a

payroll event.

Business Rules

PAYEVNTEE92 Payee Commencement Date is an optional date format data element.

References

N/A.

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7.4.2 Scenario 2 – Employee leaves employment

Overview

As a STP-enabled employer, I can submit a payroll event through a BMS or an STP-enabled solution for employees that have left.

Detail

For Scenarios 2a and 2b: Murphy’s Grill has two employees, Jack Wilson and Jill Perry. Jill resigns on 15th of August 2018. For Scenarios 2c: Murphy’s Grill employs Jack Wilson. Jack resigns on 15th of August 2018 and is later on rehired under the same Payroll ID.

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Scenario 2a - Employer provides Payee Cessation Date

Payroll event 1

Org Name: Murphy’s Grill-----------------------------------

First Name: JackFamily Name: Wilson

Gross Payment YTD: 1,000Cessation Date: <null>


Jill ceases employment












Gross Payment YTD: 2,000Cessation Date: 15/08/2018

Payroll event 1 Murphy’s Grill sends payroll event 1.

Payroll event 2 Jill Perry resigns from her position on 15/08/2018. Murphy’s Grill reports the Payee Cessation Date. The ATO updates the relationship end date.

Payroll events 3-12 Murphy’s Grill continues to provide payroll events for Jack Wilson.

Payroll events only contain employees who have been paid in the period.

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Scenario 2b - Employer does not provide Payee Cessation Date

Payroll event 1





Jill ceases employment












Gross Payment YTD: 2,000Cessation Date:<null>


Payroll event 2 Jill Perry resigns from her position on 15/08/2018. Murphy’s Grill does not report the Payee Cessation Date for Jill. The ATO will not have a record of Jill ceasing employment. If an ATO officer searches Murphy’s Grill employees, they will still see the relationship with Jill Perry.

Payroll events 3-12

Murphy’s Grill continues to provide payroll events for Jack Wilson. Payroll events only contain employees who have been paid in the period.

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Scenario 2c - Employee leaves employment and is rehired with the same Payroll ID within the same financial year

Payroll event 1



Payroll ID: XY123Gross Payment YTD: 1,000

Commencement Date: 01/01/2016Cessation Date: <null>

Payroll event 2Jack ceases employment



Payroll ID: XY123Gross Payment: 2,000

Commencement Date: 01/01/2016Cessation Date: 15/08/2018

Payroll events 3 to 11

No data reported for Jack Wilson as he is not paid during this

timeframe

Payroll event 12Employee is reinstated



Payroll ID: XY123Gross Payment: 3,000

Commencement Date: 31/05/2019Cessation Date: <null>


Payroll event 2 Jack Wilson resigns from his position on 15/08/2018. Murphy’s Grill reports the Payee Cessation Date for Jack. ATO records the end date of the relationship.

Payroll events 3-11 Murphy’s Grill sends payroll event information for other employees.

Payroll event 12 Jack is rehired using the same Payee Payroll ID as before. He recommences work on 31/05/2019. Murphy’s Grill reports the new Payee

Commencement Date and no Payee Cessation Date. The ATO will record the new commencement date.

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Business Guidance

PAYEVNTEE93 Payee Cessation Date is a date field that employer can provide to identify when a person ceases paid employment.

The ATO requires that a relationship be created between an employer and employee. The PAYEVNTEE93 Payee Cessation Date is used to record

the end date of the relationship.

If the employee is reinstated under an existing PAYEVNTEE11 Payee Payroll ID (within the same financial year), the YTD amounts will be a

continuation from where the YTD amount was last reported. New Commencement and Cessation dates will be recorded by the ATO.

Payroll events only contain employees who have been paid in the period

Business Rules

PAYEVNTEE93 Payee Cessation Date is an optional date format data element.

References

Business Scenarios and guidance - PAYEVNTEE11 Payee Payroll ID

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7.5 Duplicate payroll event

7.5.1 Scenario 1 – Duplicate checking of payroll events

Duplicate payroll event files may be inadvertently sent from a BMS.

Overview

When an STP-enabled employer sends a duplicate payroll event file, a message will be received by the BMS notifying that an error has occurred. The

duplicate payroll event file will not be processed.

Detail

The payroll officer inadvertently sends the same payroll file twice to the ATO.

Scenario 1 - An employer sends a duplicate payroll event file

Payroll event 1 Payroll event 2 REJECTED


Payroll event 2

Org Name: Sammy’s SalonABN: 888888888Branch Code: 001

BMS ID: BID1Submission ID: PTID111

Org Name: Sammy’s SalonABN: 888888888Branch Code: 001

BMS ID: BID1Submission ID: PTID111

Payroll event 1 Sammy’s Salon sends payroll event 1.

Payroll event 2 Sammy’s Salon has a new payroll officer who inadvertently submits the same payroll event immediately after sending payroll event 1.

Payroll event 2 ATO determines it is a duplicate and rejects payroll event 2. An error message is sent back to the BMS.

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32 V2.1

Rejected

Business Guidance

PAYEVNT7 Submission ID is used to detect a duplicate payroll event.

An error message will be returned when a duplicate payroll event is identified.

The payroll event file is not processed.

Business Rules

N/A

References

N/A

Interactions

Payroll event Transmission

Sammy’s Salon ATO STP Payroll Event API

2. Payroll Event Process Return Message

3. Payroll Event Duplicate Error Message

1. PAYROLL EVENT MESSAGE As per ATO Payroll Event MIG

1. Payroll event sent through Standard Business Reporting (SBR) to the ATO using the Payroll event Message Structure Table (MST). 2. On receipt of a payroll event, the ATO will send a ‘Message Received’ return message to the BMS. 3. On rejection of the payroll event, the ATO will send the following error message to the BMS: ‘We have detected a duplicate report and have

cancelled it on your behalf. There is no further action required.’

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7.6 Employee financials

Reporting financial information for employees

Employers will report year to date financial information for each payment type for employees via a payroll event. The financial information for employees

in the payroll event is a year to date amount for each payment type. Where amounts have been reported and declared under Single Touch Payroll, the

employer will not be required to provide a payment summary to the employee or payment summary annual report (PSAR) to the ATO.

Lump Sum E

Lump Sum E Payments, also called Lump Sum Payments in Arrears, relate to back payments accrued from more than 12 months in the past or return-to-work payments.

Under Single Touch Payroll the employer will be required to provide the schedule of Lump Sum E payments and the respective financial year to the employee.

The information needs to be provided no later than the payment summary. It is not a legal obligation but the letter is needed to enable the employee to

complete their tax return correctly.

For more information see ATO Website.

Employment Termination Payment (ETP)

ETP payments can be broken down into different types. Payments made on different days within a financial year must be reported separately as the ETP

caps used in the employee’s income tax calculation is based on the employee’s age on the date of payment. As currently reported through the ETP

payment summary, each ETP payment (either type or on different days) must be reported separately in the payroll event.

https://www.ato.gov.au/Individuals/Tax-Return/2016/Supplementary-tax-return/Income-questions-13-24/24-Other-income-2016/

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7.6.1 Scenario 1 – Employer pays a Lump Sum Payment in Arrears to an Employee

Overview

As an STP-enabled employer, I can make a lump sum payment over 12 months in arrears to my employees, and they can receive a tax offset from the ATO.

Detail

On 15/07/2017 Gordon receives $10,000.00 as back pay from 2014 from his employer Transnational Bank. Gordon’s income reported on his 2014 payment

summary was $80,000. In 2017 Gordon’s salary is $100,000. Gordon’s employer must include the payment as a Lump Sum E in the next payroll event and

provide Gordon with a breakdown of the Lump Sum E payment for each financial year it belongs to.

Scenario 1 – Employer pays a Lump Sum Payment in Arrears to an Employee

PRE STPPayment summary INB

2013-2014

Org Name: Transnational Bank-----------------------------------

First Name: GordonFamily Name: Smith


Payroll event 12017



Gross Payment YTD: 8,333Lump sum E: 10,000

Payroll event 122017



Gross Payment YTD: 100,000Lump sum E: 10,000


EOFY summary



Gross Payment: 100,000Lump sum E: 10,000

Employer provides Lump sum E letter

to employee


First Name: GordonFamily Name: SmithLump sum E: 10,000Lump sum E FY: 2014

Lump sum E description: Backpay

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35 V2.1

Payment summary INB 2013-2014 Gordon receives his payment summary for the 2013-2014 year before Single Touch Payroll.

Payroll event 1 2017 Gordon receives $10,000 back pay from 2013-2014. Transnational Bank reports the lump sum E payment in the payroll event.

Payroll event 12 2017 At the end of the financial year Transnational Bank finalises the financial year by providing the ATO with a Final Event Indicator as part of last payroll event.

Lump Sum E letter Transnational bank provides Gordon with a breakdown of the Lump Sum E payment including the FY, amount for each FY and description.

The employer must provide the employee with the breakdown of Lump Sum E payments

EOFY summary An EOFY summary is available to Gordon to print and view via myGov that includes the Lump Sum E payment

Business Guidance

PAYEVNTEE56 Payee Lump Sum Payment E contains all gross Lump Sum E payments.

Withholding relevant to these payments is included in PAYG under Total Tax Withheld.

The employer must provide the employee with the breakdown of PAYEVNTEE56 Payee Lump Sum Payment E.

The information needs to be provided no later than the payment summary. It is not a legal obligation but the letter is needed to enable the

employee to complete their tax return correctly.

Business Rules

PAYEVNTEE56 Payee Lump Sum Payment E is an optional numeric element.

References

N/A

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7.6.2 Scenario 2 – Employer reports an Employment Termination Payment (ETP) for an employee

Overview

As an STP-enabled employer, I can report ETP information for my employees.

Detail

Jane Smith has worked as store manager for her employer The Big Warehouse for 5 years. Due to a company restructure, she is made redundant from her

position as manager. Jane was offered a redundancy payment of $60,000 with her final date of employment set for the 30th March 2017. Jane had

previously received $60,000 in other taxable payments (salary or wage income) during the income year.

As Jane meets the ATO requirements for a genuine redundancy, she is eligible to part of the redundancy payment tax free (Lump Sum D) based on her

number of years of service.

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Scenario 2 – Employer reports an Employment Termination Payment (ETP) for an employee

Payroll events 1 – 8 The Big Warehouse reports payroll event information.

Payroll event 9 The Big Warehouse reports payroll event information including the ETP and Lump Sum D amounts paid to Jane.

Employers are not required to provide part year payment summaries to employees for amounts reported via STP.

Update event The Big Warehouse finalises the financial year by providing the ATO with a Final Event Indicator as part of an update event.

EOFY summary Two EOFY summaries are available to Jane to print and view via myGov that includes the ETP payment details.

Payroll event 9Jane ceased employment

April 2017

Org Name: The Big Warehouse-----------------------------------

First Name: JaneFamily Name: Smith

Gross Payment YTD: 60,000ETP PAYGW amount: 25,219

ETP Code: RETP Payment Date: 30/04/2017

Lump sum D: 34,781

Update eventJuly 2017



Final Event Indicator: YGross Payment YTD: 60,000ETP PAYGW amount: 25,219


Lump sum D: 34,781

EOFY summary



Gross Payment YTD: 60,000Lump sum D: 34,781

Payroll events 1 - 8August 2016 – March 2017






ETP PAYGW amount: 25,219ETP Code: R

ETP Payment Date: 30/04/2017

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38 V2.1

Business guidance

The payroll event includes an ETP Code used to describe the type of payment and determines which cap is applied.

Each ETP payment must be reported separately in the payroll event.


Business Rules

An ETP payment is made up of the following fields:

PAYEVNTEE34 ETP Code – A code that identifies the reason for the Employment Termination Payment (ETP) being made.

PAYEVNTEE123 Payee ETP Payment Date – The date on which the ETP was made. This date is required to calculate the ETP cap amounts and it may

not equate to the payment transaction date of the STP report.

PAYEVNTEE117 Payee Total ETP PAYGW amount – This is the PAYGW tax withheld under the Pay As You Go arrangement.

PAYEVNTEE50 Payee ETP Tax Free Component - This is the non-assessable and non-exempt income, that is tax-free income part of Employment

Termination Payment.

PAYEVNTEE51 Payee ETP Taxable Component – This is the total amount of the employment termination payment less the ETP tax-free component

of the payment.

Payments made on termination not included as an ETP include:

PAYEVNTEE55 Payee Lump Sum Payment D – The amount of genuine redundancy payment or early retirement scheme payment below the tax-free threshold.

References

N/A

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7.6.3 Scenario 3 – Employer reports multiple Employment Termination Payment (ETP) payment types for an employee

Overview

As a STP enabled employer, I can report multiple payment types for my employees.

Detail

After 5 years of service working for AZ Banking, Alex is made redundant on 30th March 2017. Alex had previously received $140,000 in salary or wages

income. Alex receives a payment of $83,000 on termination. See Additional information on ETP for a breakdown of the payment.

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Scenario 3 – Employer reports multiple Employment Termination Payment (ETP) payment types for an employee

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41 V2.1

Payroll event 9Alex ceased employment

April 2017

Org Name: AZ Banking-----------------------------------

First Name: AlexFamily Name: Rose

Gross Payment YTD: 140,000Lump sum A: 16,000Lump sum D: 34,781


ETP PAYGW amount: 5,219ETP Code: O

ETP Payment Date: 30/04/2017ETP PAYGW amount: 27,000

Update eventJuly 2017



Final Event Indicator: YGross Payment YTD: 140,000

Lump sum A: 16,657Lump sum D: 34,781


ETP PAYGW amount: 5,219ETP Code: O

ETP Payment Date: 30/04/2017ETP PAYGW amount: 27,000

EOFY summary



Gross Payment YTD: 140,000Lump sum A: 16,657

Lump sum D: 34,781

Payroll events 1 - 8August 2016 – March 2017







ETP PAYGW amount: 5,219



ETP Code: OETP Payment Date: 30/04/2017

ETP PAYGW amount: 27,000

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Payroll events 1 – 8 The AZ Banking reports the payroll event information.

Payroll event 9 The AZ Banking reports the payroll event information including the two different ETP types and Lump Sum amounts paid to Alex.


Update event At the end of the financial year AZ Banking finalises the financial year by providing the ATO with a Final Event Indicator as part of an update event.

Each ETP payment must be reported separately in the payroll event. Each subsequent payroll or update event must include all ETP payments previously made.

EOFY summary Three EOFY summaries are available to Alex to print and view via myGov that includes the ETP payment details.

Business Guidance

The payroll event includes a PAYEVNTEE34 ETP Code used to describe the type of payment and determines which cap, ETP cap or whole-of-income

cap, is applied. Each ETP payment must be reported separately in the payroll event. Each subsequent payroll or update event must include all ETP

payments previously made.

Employers are not required to provide part-year payment summaries to employees for amounts reported via STP.

Business Rules

Multiple ETP payments are reported as an array (up to 25) with the following fields:

PAYEVNTEE34 ETP Code – A code that identifies the reason for the Employment Termination Payment (ETP) being made.

PAYEVNTEE123 Payee ETP Payment Date – The date on which the ETP was made. This date is required to calculate the ETP cap amounts and it may

not equate to the payment transaction date of the STP report.

PAYEVNTEE117 Payee Total ETP PAYGW amount – This is the PAYGW tax withheld under the Pay As You Go arrangement.

PAYEVNTEE50 Payee ETP Tax Free Component – This is the non-assessable and non-exempt income, that is tax-free income part of Employment

Termination Payment.

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PAYEVNTEE51 Payee ETP Taxable Component– This is the total amount of the employment termination payment less the ETP tax-free component

of the payment.

Payments made on termination not included as an ETP include:

PAYEVNTEE55 Payee Lump Sum Payment D –The amount of genuine redundancy payment or early retirement scheme payment below the tax-free

threshold.

PAYEVNTEE52 Payee Lump Sum Payment A - Amount paid for:

o unused long service leave that accrued after 15 August 1978 but before 18 August 1993;

o unused annual leave and other related leave that accrued before 18 August 1993; or

o unused long service leave accrued after 17 August 1993; or

o unused annual leave or related leave, where the amount was paid in connection with a payment that includes, or consists of, a genuine

redundancy payment, an early retirement scheme payment, or the invalidity segment of an employment termination payment or

superannuation benefit.

PAYEVNTEE53 Payee Lump Sum Payment A Type – If Lump Sum Payment A field is greater than zero, this field must be set to one of the following:

o R – Where payment was for a genuine redundancy, invalidity or under an early retirement scheme; or

o T – Where payment was not a payment for a genuine redundancy, invalidity or under an early retirement scheme.

References

Business scenarios and guidance – Commencement and Cessation.

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44 V2.1

Additional information on ETP

Employer reports an ETP for an employee

For 2016-17 the tax-free limit is set as $9,936 (base amount), plus $4,696 (service amount) multiplied by years of service. Therefore, for 5 years’ service,

Jane is entitled to receive a tax-free component of $34,781.

$9,936 + ($4,969 x 5) = $9,936 + 24845 = $34,781

This amount is not part of Jane’s ETP and needs to be reported as a Lump Sum D amount.

The excess amount of $25,219 ($60,000 - $34,781) is an ETP and needs to be reported using the ETP code R.

Employer reports multiple ETP types for an employee

Alex’s termination pay included the following multiple payment types:

Redundancy pay - $35,000

Unused sick leave - $5,000

Payment in lieu of notice - $2,000

Unused annual leave - $6,000

Unused long service leave - $10,000

Gratuity - $25,0000

Alex meets the conditions of a genuine redundancy and so his redundancy payment and unused sick leave payment are considered excluded payments and

the ETP cap only applies. The payment in lieu of notice and gratuity are considered non-excluded payments, and so the whole-of-income cap applies.

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Therefore AZ Banking needs to report the following payment types to the ATO as part of Alex termination:

1. The redundancy payment and unused sick leave qualify as genuine redundancy: $35,000 + $5,000 = $40,000 The tax-free limit on this genuine redundancy payment is calculated as $9,936 + $4,969 for each completed year of service. Alex has five years of

completed service: $9,936 + (5 x $4,969) = $34,781. This amount is not part of Alex ETP and so needs to be reported as a Lump Sum D amount.

2. The unused annual leave ($6,000) and unused long service leave ($10,000) totalling $16,000 is not part of Alex’s ETP and needs to be reported as a Lump Sum A using the code R.

3. The excluded component of Alex’s termination payment is calculated as the genuine redundancy payment ($40,000) minus the tax-fee limit amount ($34,781) = $5,219. This amount needs to be reported as a taxable component using the ETP code R.

The non-excluded part of Alex’s termination payment is for the payment in lieu of notice ($2,000) and the gratuity ($25,000) = $27,000 and needs to be

reported as a taxable component using the ETP code O.

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7.6.4 Reportable Fringe Benefit Amount (RFBA) and Reportable Employer Superannuation Contributions (RESC)

Overview

As an STP-enabled employer, I am able to submit a payroll event or an update event to report to the ATO my employee’s RFBA and/or RESC, so that an

EOFY summary can be generated.

Scenario 1 - RESC is reported through Payroll event

Detail

Mike Jackson is an employee of Stars Records. Mike receives $1,000 per month as salary. He has arranged to salary sacrifice 10% of his gross earnings for

superannuation. RESC information is available during regular payroll cycle.

Payroll event 1

Org Name: Star Records-----------------------------------

First Name: MikeFamily Name: Jackson

Gross Payments Individual: 900RESC: 100

Payroll event 12



Gross Payments Individual: 10,800RESC: 1,200

Payroll event 1 Mike is paid his salary. RESC is included as part of the payroll event.

Payroll events 2-11 Mike’s salary does not change throughout the year.

Payroll event 12 This is the last payroll event of the year and the RESC is included.

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Scenario 2 - RFBA is reported through Payroll event

Detail

Mike Jackson is an employee of Star Records. Mike is paid $3,000 per month. Star Records provided Mike a fringe benefit with grossed-up taxable amount

of $4,000. Star Records is not exempt from FBT under section 57A of the FBTAA 1986. The FBT information is managed by a third party supplier who

provided the information to Star Records before the last payroll cycle. FBT amount is reported on the last payroll event of the year.

Payroll event 12



Gross Payment YTD: 36,000RFB Taxable Amount: 4,000

RFB Exempt Amount: 0Final Event Indicator: True

EOFY Summary



Gross Payment YTD: 36,000RFB Taxable Amount: 4,000

RFB Exempt Amount: 0

Payroll event 12 Star Records reported to ATO the RFBA of Mike Jackson through the last payroll event.

EOFY Summary EOFY Summary is available to Mike Jackson to print and view via myGov.

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Scenario 3 - RFBA is reported through an Update event

Detail

Mike Jackson is an employee of Stars Charities. Star Charities provided Mike a fringe benefit with grossed-up taxable amount of $4,000. Star Charities is

exempt from FBT under section 57A of the FBTAA 1986. The FBT information is not available in payroll but is managed through a third party supplier,

Fringe Pay. Fringe Pay provided the FBT information to Star Charities after the last payroll cycle. FBT information is then sent as an Update event to the

ATO.

Update event 1

Org Name: Star Charities-----------------------------------


Gross Payment YTD: 36,000RFB Taxable Amount: 0

RFB Exempt Amount: 4,000Final Event Indicator: True

EOFY Summary

Org Name: Star Charities-----------------------------------


Gross Payment YTD: 36,000RFB Taxable Amount: 0

RFB Exempt Amount: 4,000

Update event 1 Star Records reported to ATO the RFBA and RESC of Mike Jackson through an update event.

EOFY Summary EOFY Summary is available to Mike Jackson to print and view via myGov

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Scenario 4 - Employer is STP enabled but FBT amount is not submitted through STP

Detail

Mike Jackson is an employee of Stars Records. Mike is paid $3,000 per month. Star Records provided Mike a fringe benefit with grossed-up taxable amount

of $4,000. Star Records is STP enabled and not exempt from FBT under section 57A of the FBTAA 1986. Its FBT information is managed by a third party

supplier, Fringe Pay, that is not STP enabled. A separate payment summary for the FBT amount must be provided by Star Records to its employees.

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50 V2.1

Payroll event 1

Org Name: Star Records----------------------------------



Payroll event 12



Gross Payment YTD: 36,000Final Event Indicator: True

EOFY summary




FBT(Non STP)

Org Name: Star Records--------------------------------


RFBA: 4,000Exempt from FBT? No

Payment Summary(Non STP)

Org Name: Star Records--------------------------------


RFBA: 4,000Exempt from FBT? No

Payroll events 1-12 Mike Jackson is paid his salary and this is reported to ATO through STP

EOFY Summary EOFY Summary is available to Mike Jackson to print and view via myGov.

FBT (Non STP) Fringe Pay managed the FBT of Star Records.

Payment Summary (Non STP)

Payment Summary for the FBT amount is issued by Star Records for Mike Jackson.

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Business Guidance


An employer can provide RFBA and/or RESC through a payroll event (if the information is available in payroll) or an update event.

If FBT amount is not reported via STP, a separate payment summary for the FBT amount is still required from the employer to provide to the

employee.

The Reportable Employer Superannuation Contribution must be the year to date total of the extra contribution.

Business Rules

The following business rules apply when submitting RESC:

Payee RFB Taxable Amount is an optional and numerical field.

Payee RFB Exempt Amount is an optional and numerical field.

Reportable Employer Superannuation Contribution is an optional and numerical field.

References

https://www.ato.gov.au/general/fringe-benefits-tax-(fbt)/in-detail/employers-guide/reportable-fringe-benefits/?page=5#5_4_Reporting_amounts_on_payment_summaries

https://www.ato.gov.au/business/super-for-employers/in-detail/salary-sacrifice/reportable-employer-super-contributions---for-employers/



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7.6.5 Misclassification of payment

Overview

As an STP-enabled employer, I am able to correct a misclassification of payment by submitting an update event or including the correction in the next

payroll event.

Scenario 1 - Correcting a misclassification of payment through the next Payroll event

Detail

Mike Ross is employed by Suits International. Mike is paid $5,000 per month as salary. During the financial year, he was sent to Canada to temporarily

work on their Toronto Head Office. The payroll officer was not informed of this change in location, and incorrectly recorded the payment as Individual Non

Business payment instead of Foreign Employment Income. The error was identified before the next payroll event.

Payroll event 1

Org Name: Suits International-----------------------------------

First Name: MikeFamily Name: Ross

Gross Payments Individual: 5,000Total INB PAYGW Amount: 1,023

Payroll event 2




Payroll event 3




Gross Payments Foreign Employment: 10,000Total FEI PAYGW Amount: 2,046

Payroll event 1 Suits International paid Mike his salary while he is in Australia.

Payroll event 2 Suits International paid Mike his salary while he is overseas and recorded this incorrectly as Individual Non Business payment.

Payroll event 3 The misclassification of payment is corrected through the next payroll event.

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Scenario 2 - Correcting a misclassification of payment through an Update event

Detail

Mike Ross is employed by Suits International. Mike is paid $5,000 per month as salary. A month before the end of the financial year, he was sent to Canada

to temporarily work on their Toronto Head Office. The payroll officer was not informed of this change in location, and incorrectly recorded the payment as

Individual Non Business payment instead of Foreign Employment Income. There is no expected additional payment for Mike within the financial year to

correct the error, so the payroll officer sent an Update event.

Payroll event 1




Payroll event 12




Update event 1




Gross Payments Foreign Employment: 5,000Total FEI PAYGW Amount: 1,023

Payroll event 1 Suits International paid Mike his salary while he is in Australia.

Payroll events 2-11 Suits International continuously paid Mike his salary while he is in Australia.

Payroll event 12 Suits International paid Mike his salary while he is overseas and recorded this incorrectly as Individual Non Business payment.

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Update event 1 The misclassification of payment is corrected through an update event.

Business Guidance


An employer can report misclassification of payment at the next regular pay cycle or an update event.

Business Rules

The following business rules apply when submitting RFBA:

PAYEVNTEE47 Payee Gross Payments Individual is mandatory and numerical field

PAYEVNTEE130 Payee Total INB PAYGW Amount is mandatory and numerical field

PAYEVNTEE119 Payee Gross Payments Foreign Employment is mandatory and numerical field

PAYEVNTEE112 Payee Total FEI PAYGW Amount is mandatory and numerical field

References

N/A


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7.6.6 Overpayment of employee after the end of financial year

Overview

As an STP-enabled employer, I am able send update event to correct an overpayment of my employee.

Scenario 1 - Overpayment identified on the next financial year

Detail

John Snow is an employee of GOT Enterprises. John receives $11,000 per month as salary. John’s contract with GOT Enterprises only states $10,000 per

month as salary. John is overpaid by $12,000. The error was not discovered until an audit was made in July of the next financial year.

EOFY Summary

Org Name: GOT Enterprises-----------------------------------

First Name: JohnFamily Name: Snow

Gross Payment Individual: 132,000INB PAYGW Amount: 39,156

Payroll event 1

Org Name: GOT EnterprisesPay/Update Date: 28/07/2016

-----------------------------------First Name: John

Family Name: SnowGross Payment Individual: 11,000

INB PAYGW Amount: 3,263

Payroll event 12


-----------------------------------First Name: John


INB PAYGW Amount: 39,156Final Event Indicator: True

Update event 1


-----------------------------------First Name: John



EOFY Summary (Amended)




Payroll event 1-12 John Snow is paid his salary throughout the year. John is overpaid $12,000 in total.

EOFY Summary John printed his EOFY Summary through myGov and paid his income tax return.

Update Event 1 Update event is submitted to correct the error made in the 2016-2017 financial year.

EOFY Summary (Amended)

Amended EOFY Summary is available for John to view and print in myGov.

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Scenario 2 - Overpayment over multiple financial years where all are reported under Single Touch Payroll

Detail

John Snow is an employee of GOT Enterprises for the past 2 financial years. John receives $11,000 per month as salary. John’s contract with GOT

Enterprises only states $10,000 per month as salary. John is overpaid by $12,000 each year. The error was not discovered until an audit was made after 2

financial years all of which were reported under Single Touch Payroll.

EOFY Summary(FY 2016-2017)




Payroll event 12(FY 2016-2017)


-----------------------------------First Name: John


INB PAYGW Amount: 39,156Final Event Indicator: TRUE

Update event 2(FY 2017-2018)


-----------------------------------First Name: John



EOFY Summary Amended(FY 2016-2017)










-----------------------------------First Name: John





-----------------------------------First Name: John







Payroll event 12 (FY 2016-2017) John Snow is paid his salary throughout the year. John is overpaid $12,000.

EOFY Summary (FY 2016-2017) John printed his EOFY Summary and paid his income tax return.

Payroll event 12 (FY 2017-2018) John Snow is paid his salary throughout the year. John is overpaid $12,000.

EOFY Summary (FY 2017-2018) John printed his EOFY Summary via myGov and paid his income tax return.



EOFY Summary Amended (FY 2016-2017) Amended EOFY Summary is available for John to view and print in myGov.


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Scenario 3 - Overpayment over multiple financial years where one year is not reported under Single Touch Payroll

Detail

John Snow is an employee of GOT Enterprises for the past 2 financial years. John receives $11,000 per month as salary. John’s contract with GOT

Enterprises only states $10,000 per month as salary. John is overpaid by $12,000 each year. The error was not discovered until an audit was made after 2

financial years. The first financial year was not reported under Single Touch Payroll.

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-----------------------------------First Name: John


INB PAYGW Amount: 3,263



-----------------------------------First Name: John









-----------------------------------First Name: John







Payment Summary(Non STP)

(FY 2016-2017)

Org Name: GOT Enterprises--------------------------------



PSAR Amended(Non STP)

(FY 2016-2017)




Amended indicator: Y

Payment Summary Amended(Non STP)

(FY 2016-2017)




PSAR (Non STP)

(FY 2016-2017)




PSAR (Non STP) (FY 2016-2017) GOT Enterprises submitted PSAR with overpayment of $12,000.

Payment Summary (Non STP) (FY 2016-2017) GOT Enterprises provided payment summary to John.

Payroll events 1-12 (FY 2017-2018) John Snow is paid his salary throughout the year. John is overpaid $12,000. Payments are reported through STP

EOFY Summary (FY 2017-2018) John printed his EOFY Summary in myGov and paid his income tax return.

PSAR Amended (Non STP) (FY 2016-2017) GOT Enterprises submitted an amended PSAR to correct the error made in the 2016-2017 financial year.

Payment Summary (Non STP) (FY 2016-2017) GOT Enterprises provided amended payment summary to John.



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Business Guidance


The update event must be a full record of data for the employee being updated, i.e. report all elements whether they are being corrected or not

including the YTD amounts.

When Update event is submitted after the EOFY, it should detail the amounts the employee should have received in the relevant financial year. Do

not adjust the amount of tax withheld.

When Update event is submitted after the EOFY, the Pay/Update Date, Period Start Date and Period End Date must contain a date within the

relevant FY being amended.

When Update event is submitted after the EOFY, the Final Event Indicator must be set to ‘True’.

When Update event is submitted after the EOFY, an amended EOFY Summary will be available for the employee to view and print via myGov.

If the overpayment occurred in more than one year, the employer should provide an update event for each financial year reported via STP (if it

includes a year not reported in STP the employer should amend the payment summary and payment summary annual report).

Business Rules

The following business rules apply:

Pay/Update Date is a mandatory date field. This is an ‘As at date’ for all payees reported in the update event.

Period start date is a mandatory date field. This must have the same value as the Pay/Update Date in the update event.

Period end date a mandatory date field. This must have the same value as the Pay/Update Date in the update event.

Payee Gross Payments Individual is optional and numeric field.

Payee Total INB PAYGW Amount is optional and numeric field.

Final Event Indicator is a mandatory true or false field

References

N/A

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7.7 Full file replacement of payroll event These scenarios explain when a Full file replacement can be submitted, what happens once it is processed and when these events will be rejected.

7.7.1 Scenario 1 – Employer sends Full file replacement

Overview

As an STP-enabled employer, I can send a Full file replacement for the most recent payroll event I have submitted to ATO.

Detail

Scenario 2a

Sally is the payroll officer for James’ Repairs. She runs a regular payroll event and sends it to the ATO. After sending the payroll event, Sally identifies that she has not included the Christmas bonus for all employees in the payroll event. Sally quickly makes the correction and submits a Full file replacement to the ATO.

Scenario 2b

Sally sends a Full file replacement to the ATO and the BMS receives an error message that the Full file replacement was rejected, as the original payroll event could not be found.

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Scenario 2a - Employer successfully submits Full File Replacement

Payroll event 1

Org Name: James’ RepairsFull File Replacement Indicator: FALSE

Submission ID: Pay1-----------------------------------

First Name: HenryFamily Name: Hall

Gross YTD: 300

Payroll event 2




Gross YTD: 600



First Name: SamFamily Name: Smith

Gross YTD: 300




Gross YTD: 600

Payroll event 2 (FFR)

Org Name: James’ RepairsFull File Replacement Indicator: TRUE


First Name: HenryFamily Name: HallGross YTD: 1,600




Gross YTD: 1,600

Payroll event 1 James’ Repairs sends payroll event 1.

Payroll event 2 James’ Repairs sends payroll event 2 without the Christmas bonus.

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Payroll event 2 (FFR) James’ Repairs sends payroll event 2 with Full file Replacement Indicator.

ATO cancels the original payroll event Pay2 and records the new payroll information.

Scenario 2b - Employer submits Full file replacement and file is rejected

Payroll event 1




Gross YTD: 1,000,000




Gross YTD: 0

Payroll event (FFR)




Gross YTD: 300




Gross YTD: 300

Payroll event (FFR) REJECTED


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Payroll event 1 James’ Repairs sends payroll event 1 but it contains corrupt data.

Payroll event (FFR) James’ Repairs sends payroll event with a Full file Replacement Indicator. The Submission ID is incorrect Pay2.

Payroll event (FFR) Rejected The ATO does not have a record of Submission ID: Pay2 and sends back an error message to BMS.

Business Guidance

Registered Agents or Employers can replace the latest submitted payroll event with a new payroll event by sending a payroll event with PAYEVNT19

Full File Replacement Indicator set to TRUE. It is expected that default value should be FALSE.

ATO will identify the original report that needs to be replaced using the ‘Submission ID’.

A payroll event needs to be successfully submitted and recorded by the ATO before it can be replaced.

If ATO cannot find the original payroll event to replace, a rejection error message will be sent back to BMS: ‘Your Full file Replacement/Cancellation

was unsuccessful. We cannot locate the transaction that you have requested to be replaced/cancelled. Please try again later’.

Business Rules

PAYEVNT19 Full File Replacement Indicator is a mandatory data element.

PAYEVNT19 Full File Replacement Indicator has two valid values, “TRUE” or “FALSE”.

PAYEVNT7 Submission ID is a mandatory data element.

PAYEVNT7 Submission ID is an alphanumeric based element.

PAYEVNT7 Submission ID must be unique within a PAYEVNT2 Payer Australian Business Number, PAYEVNT4 Payer Branch Code and PAYEVNT63


Interactions

Payroll event Transmission Scenario 2b

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James’ Repairs BMSATO STP

Payroll Event API 2. Payroll Event Process Return Message

3. Payroll Event FFR Error Message

1. PAYROLL EVENT MESSAGE As per ATO Payroll Event MIG

1. Payroll event sent through SBR to the ATO using the Payroll event MST. 2. On receipt of a payroll event, the ATO will send a ‘Message Received’ return message to the BMS. 3. On rejection of the payroll event, the ATO will send an error message to the BMS: ‘Your Full file Replacement/Cancellation was unsuccessful.

We cannot locate the transaction that you have requested to be replaced / cancelled. Please try again later’.

7.8 Payroll dates

Overview

This scenario explains how the ATO will use the Run Date/Time Stamp to determine the latest payroll event and Pay/Update Date to identify the PAYG withholding obligation date.

7.8.1 Scenario 1 – Payroll event using the Run Date/Time Stamp and Pay/Update Date

Detail

Druid’s Chemist runs their weekly payroll every Tuesday and pays their staff every Friday.

During the month of November, Jules McDonald has been underpaid and the payroll officer initiates an out of cycle payroll event.

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Scenario 1 - Payroll event using the Run Date/Time Stamp and Pay/Update Date

Payroll event 1

Org Name: Druid’s ChemistRun Date/Time Stamp: 08/11/2016

08:00:05-----------------------------------

First Name: JulesFamily Name: McDonald

Pay/Update Date: 11/11/2016Gross Payment YTD: 1,000

Payroll event 2 Ad-hoc payroll event


10:22:50-----------------------------------

First Name: JulesFamily Name: McDonald



12:53:02-----------------------------------

First Name: JulesLast Name: McDonald


Payroll event 1 Fred, the payroll officer, runs the weekly payroll through the BMS on Tuesday 08/11/16 for the payment to staff on Friday 11/11/2016.

Payroll event 2 Fred runs the next payroll through the BMS on Tuesday 15/11/16 for the payment to staff on Friday 18/11/2016.

Ad-hoc payroll event

The payroll officer needs to run an out of cycle payment to ensure that staff are paid correctly. The ad-hoc payroll event is run on Monday 21/11/2016 for the payment occurring on that day.

Business Guidance

PAYEVNT69 Pay/Update Date is the pay day for all payees reported in the payroll event.

PAYEVNT71 Run Date/Time Stamp is the date that the event was run, and will be used to determine the latest payroll event.

Business Rules

PAYEVNT69 Pay/Update Date is a mandatory date format element.

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PAYEVNT71 Run Date/Time Stamp is a mandatory date time element

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7.9 Payroll reporting employees

These scenarios will outline how the Payroll ID can be used to identify an employee or re-used where an employee leaves then re-enters employment. An

Employee can also have multiple Payroll IDs for a single employer.

Payroll reporting of employees

The Payee Payroll ID data element is used to identify employees within a BMS and is generated by the BMS.

When an employee re-enters employment with the same employer the employer is able to reuse or use a new Payee Payroll ID. These circumstances are

illustrated in Scenario 1.

There may also be times where an employee has multiple Payee Payroll IDs while working for the same employer. Scenario 2 shows how this may work.

7.9.1 Scenario 1 – Employee leaves and re-enters employment with the same employer

Overview

As an STP-enabled employer, I must ensure my BMS includes a Payee Payroll ID in the payroll event.

Detail

The Southport Pub employs several staff, including Darren Smith. Darren leaves his role at the pub but several months later is re-employed. The Payee

Payroll ID used at the time of his previous employment is re-used when Darren resumes work at the pub.

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Scenario 1a - Employee leaves and resumes employment using the same Payee Payroll ID

Payroll event 1

Org Name: Southport Pub-----------------------------------

Payroll ID: 2468First Name: Darren

Family Name: SmithGross Payment YTD: 300

Payroll event 2




Cessation Date: 31-08-2017

Payroll event 12



Family Name: SmithGross Payment YTD: 900Cessation Date: <null>

Commencement Date: 01-06-2018

Darren is not included in Payroll Events 3 - 11

Payroll event 1 Darren Smith is paid under payroll event 1.

Payroll event 2 Darren has handed in his notice/termination and is paid under payroll event 2. The cessation date is provided in the payroll event.

Payroll events 3 - 11 Darren is not included in these Payroll events, as he is not employed at the Southport Pub.

Payroll event 12 Darren resumes working for the Southport Pub on the 1st of June.

The same Payee Payroll ID is used.

The cessation date is null.

The commencement date is populated with the date that Darren resumes working at the pub.

The YTD values are a continuation of Darren’s previous employment.

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Scenario 1b - Employee leaves and resumes employment using different Payee Payroll IDs

Payroll event 1




Payroll event 2




Cessation Date: 31-08-2017

Payroll event 12




Commencement Date: 01-06-2018

Darren is not included in Pay Events 3 - 11

Payroll event 1 Darren Smith is paid.

Payroll event 2 Darren has handed in his notice/termination and is paid. The cessation date is provided in the payroll event.

Payroll events 3 - 11 Darren is not included in these payroll events, as he is not employed at the Southport Pub.

Payroll event 12 Darren resumes working for the Southport Pub on the 1st of June.

A new Payee Payroll ID is used.

A new commencement date is provided.

The YTD values are NOT a continuation of Darren’s previous employment and start from Payroll 12 under the new Payee Payroll ID.

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Business Guidance


PAYEVNTEE11 Payee Payroll ID is a number allocated by the employer payroll system to identify employees.

PAYEVNTEE11 Payee Payroll ID can be reused, however we recommend reviewing the business scenarios and guidance on Commencement and

Cessation in this document.

When a PAYEVNTEE11 Payee Payroll ID is reused in the same financial year, the year-to-date payroll information MUST be a continuance of their

previous year-to-date payroll information.

If the same PAYEVNTEE11 Payee Payroll ID is used when an employee resumes employment in a financial year, the employee will be able to see a

continuation of their year-to-date payroll information and end of financial year payment summary in myGov.

If a new PAYEVNTEE11 Payee Payroll ID is used when the employee resumes employment in a financial year, the employee will see 2 entries based

on the commencement and cessation dates of their year to date payroll information, and also be able to view and print 2 EOFY summaries in

myGov.

Business Rules

PAYEVNTEE11 Payee Payroll ID is a mandatory data element.

PAYEVNTEE11 Payee Payroll ID is an alphanumeric based element.

PAYEVNTEE11 Payee Payroll ID must be unique within a PAYEVNT63 BMS Identifier and PAYEVNTEE11 Payee Payroll ID combination.

References

Commencement and Cessation of an employee.

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7.9.2 Scenario 2 – Employee working under multiple Payee Payroll IDs

Overview

As an STP-enabled employer, I must ensure my BMS includes a Payee Payroll ID in the payroll event.

Detail

Richard’s Dictations employs Mavis Beacon in two separate roles. During the week Mavis works as an administrator and on weekends as an office manager.

As these jobs have different rates of pay, Mavis is listed in the BMS twice, with a separate Payee Payroll ID for each role.

Scenario 2 - An employee is paid using two unique Payee Payroll IDs

Payroll event 1


Payroll ID: 2468First Name: Mavis


Payroll event 12



Family Name: BeaconGross Payment YTD: 1,200






Family Name: BeaconGross Payment YTD: 3,600

Payroll events 1-12 A payroll event includes two entries for Mavis Beacon, one for each Payee Payroll ID.

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Business Guidance


PAYEVNTEE11Payee Payroll ID is a number allocated by the employer payroll system to identify employees.

If an employee works within an organisation under 2 separate roles/awards, the employee can be paid under multiple PAYEVNTEE11Payee Payroll

IDs within a payroll event.

An employee with multiple PAYEVNTEE11 Payee Payroll IDs will be able to view and print payroll information and end of financial year summary for

each PAYEVNTEE11 Payee Payroll ID in myGov.

Business Rules

PAYEVNTEE11 Payee Payroll ID is a mandatory data element.

PAYEVNTEE11 Payee Payroll ID is an alphanumeric based element.

PAYEVNTEE11 Payee Payroll ID must be unique within a PAYEVNT63 BMS Identifier and PAYEVNTEE11 Payee Payroll ID combination.

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7.10 Payroll reporting superannuation amounts

This scenario explains how super amounts will be reported in a payroll event as either Super Guarantee (SG) or Ordinary Time Earnings (OTE). Reportable

Employee Super Contributions (RESC) is an optional data element that can also be reported via the payroll event.

7.10.1 Scenario 1 – Super amounts in payroll

Overview

As an STP-enabled employer, I can submit super contribution amounts to ATO.

Scenario 1a – Employer pays employee the minimum superannuation guarantee obligation

Detail

Jamie receives $1000 per month as salary and Sammy’s Salon pays the minimum superannuation guarantee amount.

Payroll event 1

Org Name: Sammy’s Salon-----------------------------------

First Name: JamieFamily Name: Bond

Gross YTD: 1,000SG Amount:95

OTE Amount:<null>

Payroll event 12


First Name: JamieFamily Name: BondGross YTD: 12,000SG Amount:1,140

OTE Amount:<null>

Payroll event 1 Jamie is paid under payroll event 1. Super amount is included as part of the payroll event.

Payroll events 2-11 Jamie’s salary does not change throughout the year.

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Payroll event 12 This is the last payroll event of the year and the super amount is included.

Scenario 1b – Employer pays employee above the minimum superannuation guarantee obligation

Detail

Jamie receives $1000 per month as salary and Sammy’s Salon agreed to pay 16% of OTE.

Payroll event 1




OTE Amount:<null>

Payroll event 12



OTE Amount:<null>


Payroll events 2-11 Jamie’s salary does not change throughout the year.


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Scenario 1c – Employer pays employee through defined benefit fund and contribution is on the employee’s payslip

Detail

Jamie receives $1000 per month as salary. Jamie belongs to a defined benefit fund. The superannuation contribution amount is reflected on Jamie’s payslip

and is reported via the payroll event.

Payroll event 1




OTE Amount:<null>

Payroll event 12



OTE Amount:<null>


Payroll events 2-11 Jamie‘s salary does not change throughout the year.


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Scenario 1d – Employer pays employee through defined benefit fund and contribution is NOT on the employee’s payslip

Detail

Jamie receives $1000 per month as salary. Jamie belongs to a defined benefit fund. No superannuation contribution amount is reflected on Jamie’s payslip.

Payroll event 1




OTE Amount:<null>

Payroll event 12


First Name: JamieFamily Name: BondGross YTD: 12,000

SG Amount:0OTE Amount:<null>

Payroll event 1 Jamie is paid under payroll event 1. Super amount is not included as part of the payroll event.

Payroll events 2-11 Jamie‘s salary does not change throughout the year.

Payroll event 12 This is the last payroll event of the year and the super amount is not included.

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Business Guidance


PAYEVNTEE84 Super Guarantee represents the year to date entitlement of an employee as mandated by super guarantee legislation. This element

is not intended as confirmation of payment. If PAYEVNTEE84 Super Guarantee amount is available, it must be provided in the payroll event.

PAYEVNTEE61 OTE amount is a numeric field representing the year to date amount of what an employee has earned during their ordinary hours of

work. It is mandatory if PAYEVNTEE84 Super Guarantee Amount is not provided. OTE includes:

o over-award payments;

o certain bonuses;

o commissions;

o shift-loading; and

o certain allowances.

If the employer pays above the superannuation guarantee obligation (9.5%) then the amount reported in PAYEVNTEE84 Super Guarantee is the YTD

amount of superannuation contributions made or is liable to be made for the benefit of the employee

If the employer provides the Superannuation contribution through a defined benefit arrangement and the contribution is on the employee’s payslip

then this amount is reported in PAYEVNTEE84 Super Guarantee, otherwise employer must report 0.

Business Rules

PAYEVNTEE84 Super Guarantee amount is a conditional field. Condition is if PAYEVNTEE61 OTE Amount is null then it becomes mandatory.

PAYEVNTEE84 Super Guarantee amount is a numeric based element.

PAYEVNTEE61 OTE Amount is a conditional field. Condition is if PAYEVNTEE84 Super Guarantee amount is null then it becomes mandatory.

PAYEVNTEE61 OTE amount is a numeric based element.

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7.11 Tax file number declaration in a payroll event

These scenarios describe how a TFN declaration including a Withholding declaration can be reported within a payroll event and how an employee will still

need to provide a declaration when TFN declaration is submitted.

Including the tax file number declaration in a payroll event

TFN declaration is included as part of the payroll event in Single Touch Payroll. This provides employers with an additional channel to meet there TFN

declaration obligations.

An employer who reports TFND through the payroll event can provide the declaration in the next payroll event after they receive the declaration. If the

employee is not paid within 14 days of the employer receiving a TFND, then an automatic deferral will be granted until the due date of the next payroll

event for the employee.

Where changes occur to employee circumstances and the employee does not provide a TFN declaration, the change is not required to be reported. For

example when an employee changes from part time to full time employment, there is no need to report via Single Touch Payroll.

Employee declaration for TFN declaration

Employers must include details of an employee’s declaration when submitting a TFN declaration through the payroll event.

Payroll events and TFN exemption codes

An employer will need to report via Single Touch Payroll where there employee has not provided a TFN. TFN exemption codes allow an employer to submit

a payroll event for an employee and indicate the reason a TFN has not been provided.

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7.11.1 Scenario 1 – Including the tax file number declaration in a payroll event

Overview

As an STP-enabled employer, I am able to submit a tax file number declaration as part of a payroll event.

Detail

Reginald Dwight provides his tax file number declaration information to Crane Video Hire.

Crane Video Hire submits Reginald’s TFN declaration as part of their next payroll event.

For the purposes of the below examples, only the first 3 TFND fields are shown. Assume that all TFND fields have been submitted.

Scenario 1a - Employee starts employment and TFN declaration information is included in next payroll event

Payroll event 1

Org Name: Crane Video Hire-----------------------------------

TFN: 987654321First Name: ReginaldFamily Name: Dwight

Gross Payment YTD: 300Employment Type Code: FResidency Status: Resident

Tax Free Threshold Claimed: TRUE

Payroll event 2




Payroll event 1 Reginald Dwight completes a TFN declaration and the information is included in the payroll event.

Payroll event 2 Reginald Dwight continues to be paid.

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Scenario 1b - Employee resubmits TFN declaration with updated information

In this scenario the employee provides the employer with a new TFN declaration that now indicates they do not want to claim the tax free threshold as

previously claimed.

Payroll event 2




Tax Free Threshold Claimed: FALSE

Payroll event 1





Payroll event 1 Reginald Dwight completes a TFN declaration and the information is included in the payroll event.

Payroll event 2 Reginald Dwight completes a NEW TFN declaration and the information is included in the payroll event.

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Business Guidance


Where an employee provides a TFN declaration to their employer, the information can be reported via a payroll event.

Where changes occur to employee’s circumstances and the employee does not provide a TFN declaration, the change is not required to be

reported. For example when an employee changes from part time to full time employment, there is no need to report via Single Touch Payroll.

Where an employee provides a withholding declaration only to the employer then the change is not required to be reported.

All fields in the TFN declaration must be provided for a TFN declaration to be accepted.

TFN declaration is only provided when an employee is paid.

Business Rules

The following business rules apply when submitting the TFN declaration in a payroll event:

All fields in the TFN declaration must be provided for the TFN declaration to be accepted.

References

Data Definitions Payroll event

Messaging Diagram Payroll event (MST)

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7.11.2 Scenario 2 – Employee declaration for TFN declaration

Overview

As an STP enabled employer, I must report the declaration my employees make on their TFN declarations.

Detail

A BAS Agent sends a payroll event for Crane Video Hire and provides a TFN declaration.

Scenario 2 - Employee declaration for TFN

Payroll event 1




Tax Free Threshold Claimed: <null>Declarer Identifier: Reginald Dwight

Declaration Date: 06/06/2016Declaration Acceptance Indicator: Y

Payroll event 1 Crane Video Hire’s BMS sends payroll event 1 including the TFN declaration for Reginald Dwight.

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Business Guidance

If a payroll event with the TFN Declaration is submitted without PAYEVNTEE127 Payee Declarer Identifier, PAYEVNTEE128 Payee Declaration Date

or PAYEVNTEE129 Payee Declaration Acceptance Indicator, the TFN Declaration will be stored but not processed by the ATO. The payroll event will

still be processed.

Employers and software developers must follow the requirements of the TFN declaration – approved electronic payee to payer process.

Business Rules

PAYEVNTEE127 Payee Declarer Identifier is an optional alpha-number element and is used to identify the person that made the declaration.

PAYEVNTEE128 Payee Declaration Date is an optional date element and is used to identify the date of the declaration.

PAYEVNTEE129 Payee Declaration Acceptance Indicator is an optional Y/N element and is used to indicate the terms stated in the declaration have

been accepted.

References

TFN declaration – approved electronic payee to payer process

http://softwaredevelopers.ato.gov.au/sites/default/files/resource-attachments/n73963_js36410_TFN_declaration_approved_electronic_payee_to_payer_process.pdf

http://softwaredevelopers.ato.gov.au/sites/default/files/resource-attachments/n73963_js36410_TFN_declaration_approved_electronic_payee_to_payer_process.pdf

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7.11.3 Scenario 3 – Payroll events and TFN exemption codes

Employer submits payroll event where a TFN declaration has been provided by the employee with no TFN

Overview

As an STP-enabled employer, I can submit my payroll event where an employee has submitted a TFN declaration but not provided a TFN .

Detail

The Health & Wellbeing Clinic hires a new receptionist, Julia Smith, a recent graduate. Being Julia’s first job out of university, she does not have a TFN but

advised her employer via a TFN declaration that she has applied for one.

As Julia has advised her employer she has applied for a TFN on commencement, she has 28 days to provide her TFN before the top tax rate must be

withheld.

A fortnight after commencement at the Clinic, Julia receives her TFN from the ATO and provides it to her employer before payroll event 2 is sent to Single

Touch Payroll.

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Scenario 3 – Payroll events and TFN exemption codes

Payroll event 2May 15

Payroll event 1May 01

ABN: 987633333-----------------------------------

TFN: 111111111Payroll ID: 01

First Name: JuliaFamily Name: Smith

DOB: 06/04/98Employment Type Code: FResidency Status: Resident

Declaration Date: 25/04/2017Declarer Identifier: Julia Smith


ABN: 987633333-----------------------------------

TFN: 998728321Payroll ID: 01

First Name: JuliaFamily Name: Smith

DOB: 06/04/98Employment Type Code: FResidency Status: Resident

Declaration Date: 30/04/2017Declarer Identifier: Julia Smith


Payroll event 1 The Health & Wellbeing Clinic sends payroll event information for Julia Smith using TFN 111111111 to indicate she has applied for a TFN. The payroll event includes Julia’s TFN declaration. The amount withheld for Julia is based on the standard withholding rate.

Payroll event 2

Julia receives her TFN from the ATO which she provides to her Employer. The Health & Wellbeing Clinic sends payroll event 2 including the TFN 998728321 for Julia Smith. The amount withheld for Julia is based on the standard withholding rate.

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Business Guidance

Employers who have not been provided with a TFN for an employee will submit a payroll event with a TFN code in field PAYEVNTEE13 Payee TFN

Where the payee indicates on their TFN declaration they have applied for an individual TFN, or enquired about their existing TFN, they have 28 days to provide their TFN to the employee before the top rate of tax must be applied.

After 28 days, if the payee has not provided their TFN to their employer the employer must withhold the top rate of tax from future payments.

Business Rules

PAYEVNTEE13 Payee TFN is a mandatory alphanumeric based element.

PAYEVNTEE13 Payee TFN – The following TFN exemption codes are used in this field where a TFN has not been supplied: o 000000000 – The code 000000000 is used in the following circumstances:

The employee has not completed a TFN declaration; The employee has completed a TFN declaration and chooses not to quote a TFN; and The employee has indicated that they applied or enquired about a TFN with the ATO and failed to provide a TFN within 28 days.

o 111111111 – The code 111111111 is used when an employee has indicated on the TFN declaration that they have applied or enquired about a TFN with the ATO.

o 333333333 - The code 333333333 is used when claiming an exemption from quoting a TFN where the employee is under the age of eighteen and:

earns $350 or less weekly; or earns $700 or less fortnightly: or earns $1517 or less monthly.

o 444444444 – The code 444444444 is used when an employee who is a recipient of a social security or service pension or benefit (other than Newstart, sickness allowance, special benefits or partner allowance) who claims an exemption from quoting a TFN.

o 987654321 – The code 987654321 is used where an employee has quoted a TFN with alpha characters or TFN quoted cannot be contained in the TFN field.

References

N/A

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7.11.4 Scenario 4 – Employee is under 18 years of age.

Scenario 4.1 - Employee is under 18 years of age and do not earn enough to pay tax

Overview

As an STP-enabled employer, I am able to submit a payroll event for my employee who is under 18 years of age and he does not earn enough to pay tax.

Scenario 4.1a - Employee submits TFN declaration and claims an exemption because he is under 18 years of age and do not earn enough to pay tax

Detail

Reginald Dwight provides his tax file number declaration information to Crane Video Hire. Reginald is under 18 years of age and claims exemption because

he is a minor and he does not earn enough to pay tax. Crane Video Hire pays Reginald $40 per month.


Payroll event 1



Gross Payment YTD: 40PAYGW YTD: 0

Employment Type Code: FResidency Status: Resident


Payroll event 2




Payroll event 1 Reginald Dwight completes a TFN declaration claiming an exemption and the information is included in the payroll event. No tax withheld.

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Scenario 4.1b - Employee does not submit a TFN declaration

Detail

Reginald Dwight is an employee of Crane Video Hire. Reginald is under 18 years of age and he does not earn enough to pay tax. Crane Video Hire pays

Reginald $40 per month. Reginald has not completed a TFN declaration.

Payroll event 1




Payroll event 2




Payroll event 1 Reginald Dwight did not complete a TFN declaration form. Crane Video Hire paid Reginald and tax is withheld at the highest rate.


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Scenario 4.1c - Employee quoted his TFN to employer and did not answer the question regarding exemption

Detail

Reginald Dwight submitted a TFN declaration to his employer, Crane Video Hire, quoting his TFN and left the exemption question blank.. Reginald is under

18 years of age and he does not earn enough to pay tax.. Crane Video Hire pays Reginald $40 per month.


Payroll event 1






Payroll event 2




Payroll event 1 Reginald Dwight completed a TFN declaration form but did not claim an exemption. Crane Video Hire paid Reginald and no tax is

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withheld.


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Scenario 4.2–Employee is under 18 years of age and earns enough to pay tax.

Scenario 4.2a - Employee submits TFN declaration

Detail

Reginald Dwight provides his tax file number declaration information to Crane Video Hire. Reginald is under 18 years of age and earns enough to pay tax as

a store manager. Crane Video Hire pays Reginald $2,000 per month.


Payroll event 1



Gross Payment YTD: 2,000PAYGW YTD: 108



Payroll event 2




Payroll event 1 Reginald Dwight completed a TFN declaration form. Crane Video Hire paid Reginald and appropriate tax is withheld.


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Scenario 4.2b - Employee does not submit a TFN declaration

Detail

Reginald Dwight is an employee of Crane Video Hire. Reginald is under 18 years of age but earns enough to pay tax as a store manager. Crane Video Hire

pays Reginald $2,000 per month. Reginald has not completed a TFN declaration.

Payroll event 1




Payroll event 2



Gross Payment YTD: 4,000PAYGW YTD: 1,960

Payroll event 1 Reginald Dwight did not complete a TFN declaration form. Crane Video Hire paid Reginald and tax is withheld at the highest rate.


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Business Guidance


Where an employee provides a TFN declaration to their employer, the information can be reported via a payroll event.

All fields in the TFN declaration must be provided for a TFN declaration to be accepted.

TFN declaration is only provided when an employee is paid.

Where the employee is under the age of eighteen at the time of payment and:

o earns $350 or less weekly, or

o earns $700 or less fortnightly, or

o earns $1517 or less monthly.

The code 333333333 must be used when an employee is claiming an exemption from quoting a TFN because they are under 18.

If circumstances change and the employee subsequently earns a level of income that attracts withholding tax, a TFN will be required to be provided

at that time.

The code 000000000 is used in the following circumstances:

o The employee has not completed a TFN declaration;

o The employee has completed a TFN declaration and chooses not to quote a TFN; and

o The employee has indicated that they applied or enquired about a TFN with the ATO and failed to provide a TFN within 28 days.

Business Rules

The following business rules apply when submitting the TFN declaration in a payroll event:

All fields in the TFN declaration must be provided for the TFN declaration to be accepted.

References

https://www.ato.gov.au/assets/0/104/1328/1465/82fba3a5-9935-4a9f-b929-43bb11f60c39.pdf

https://www.ato.gov.au/Calculators-and-tools/Host/?anchor=TWC&anchor=TWC#TWC/report

https://www.ato.gov.au/assets/0/104/1328/1465/82fba3a5-9935-4a9f-b929-43bb11f60c39.pdf

https://www.ato.gov.au/Calculators-and-tools/Host/?anchor=TWC&anchor=TWC#TWC/report

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https://www.ato.gov.au/forms/tfn-declaration/?page=2#Who_should_complete_this_form_

https://www.ato.gov.au/forms/tfn-declaration/?page=2#Who_should_complete_this_form_

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7.12 Registered Agent reporting These scenarios outline how a Registered Agent can submit a payroll event on behalf another entity that has an Australian Business Number (ABN) or Withholding Payer Number (WPN), what data is validated and providing the necessary declarations on submission of the payroll event.

Registered Agent submitting payroll events on behalf of their clients

Registered Agents can report on behalf of an employer. This topic covers the following scenarios:

Registered Agents reporting for WPN holders

Registered Agents reporting for ABN holders

Validation of Registered Agents reporting

Registered Agent declaration

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7.12.1 Scenario 1 – Registered Agents reporting for Withholding Payer Number (WPN) holders

Overview

As an employer with no ABN but has WPN, I can submit Single Touch Payroll information through a Registered Agent.

Detail

Jenny Young hires two carers and uses Acme Bookkeepers to manage her financial affairs which includes payroll.

Scenario 1 - Registered Agents reporting for Withholding Payer Number (WPN) holders

Payroll event 1Registered Agent ABN: 1456

ABN: <null>WPN: 5555

Org Name:Jenny Young-----------------------------------

First Name: BratFamily Name: PitPAYGW YTD: 500


Org Name: Jenny Young-----------------------------------

First Name: AngelinaFamily Name: JoePAYGW YTD: 200



Org Name:Jenny Young-----------------------------------

First Name: BratFamily Name: Pit

PAYGW YTD: 1,000


Org Name: Jenny Young-----------------------------------

First Name: AngelinaFamily Name: JoePAYGW YTD: 400

Payroll event 1 Acme Bookkeepers sends payroll event 1 on behalf of Jenny Young for her two staff.

When the payroll event is received, the ATO validates the Acme Bookkeepers’ ABN and the Jenny Young’s WPN.

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Business Guidance

PAYEVNT3 Payer Withholding Payer Number must be provided for a Registered Agent to be able to submit on behalf of a non-ABN employer/payer.

A valid relationship between the Registered Agent and the WPN holder must exist in ATO systems.

Submission from Registered Agents for non-ABN payers will be governed by Single Touch Payroll authorisations model in accordance with the Tax Practitioners Board regulations (noting consultation on nomination processes are in progress).

Business Rules

PAYEVNT3 Payer Withholding Payer Number is mandatory when an ABN is not provided.

PAYEVNT64 Registered Agent ABN is mandatory.

PAYEVNT64 Registered Agent ABN is used as part of the authentication process and also used to identify the organisation submitting the payroll event.

PAYEVNT65 Registered Agent Number is mandatory for intermediaries.

References

N/A

Payroll event 2 Acme Bookkeepers sends payroll event 2 on behalf of Jenny Young for her two staff.

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7.12.2 Scenario 2 – Registered Agents reporting for ABN holders

Detail

A BAS Agent manages financial affairs including the payroll of many businesses.

Jen’s Shoppe and Angie’s Shop have a registered ABN and both utilise BAS Agents.

Jen’s Shoppe pays their staff monthly and Angie’s Shop pays staff fortnightly.

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Scenario 2 - Registered Agents reporting for ABN holder

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Payroll Event 1 Registered Agent ABN: 1234

ABN: 8888 Org Name: Jen’s Shop

-----------------------------------First Name: Ann

Family Name: StonPAYGW YTD: 150

ABN: 8888 Org Name: Jen’s Shop

-----------------------------------First Name: Holly

Family Name: WoodPAYGW YTD: 150

Payroll Event 2Registered Agent ABN: 1234

ABN: 9999 Org Name: Angie’s Shop

-----------------------------------First Name: Joe

Family Name: LeePAYGW YTD: 100


-----------------------------------First Name: Pete

Family Name: BellPAYGW YTD: 100


-----------------------------------First Name: Joe


ABN: 9999Org Name: Angie’s Shop

-----------------------------------First Name: Pete


Payroll Event 3Registered Agent ABN: 1234

ABN: 8888Org Name: Jen’s Shop

-----------------------------------First Name: Ann



-----------------------------------First Name: Holly



-----------------------------------First Name: Joe



-----------------------------------First Name: Pete


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Payroll event 1 A BAS Agent’s BMS sends payroll event 1 for Jen’s Shop (ABN 8888) and Angie’s Shop (ABN 9999) in 1 file.

When the payroll event is received the ATO validates the BAC BAS Agent’s ABN as well as Jen’s Shop and Angie’s Shop ABNs.

Payroll event 2 A BAS Agent’s BMS sends payroll event 2 for Angie’s Shop (ABN 9999).

When the payroll event is received the ATO validates the BAC BAS Agent’s ABN and Angie’s Shop ABN.

Payroll events 3 A BAS Agent’s BMS sends payroll event 3 for Jen’s Shop (ABN 8888) and Angie’s Shop (ABN 9999) in 1 file.

When the payroll event is received the ATO validates the BAC BAS Agent’s ABN as well as Jen’s Shop and Angie’s Shop ABNs.

Business Guidance

PAYEVNT2 Payer Australian Business Number must be provided for a Registered Agent to be able to submit a payroll event on their behalf.

A valid relationship between the Registered Agent and the ABN holder must exist in ATO systems.

Submission from Registered Agents for ABN payers will be governed by Single Touch Payroll authorisations model in accordance with the Tax

Practitioners Board regulations (noting consultation on nomination processes are in progress).

Business Rules

PAYEVNT2 Payer Australian Business Number is mandatory.


PAYEVNT64 Registered Agent ABN is used as part of the authentication process and is also used to identify the organisation submitting the payroll

event.

PAYEVNT65 Registered Agent Number is mandatory for Registered Agents.

References

N/A

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7.12.3 Scenario 3 - Validation of Registered Agents reporting

Overview

As an STP-enabled Registered Agent, I will receive an error message if I have submitted a payroll event with an invalid Registered Agent ABN.

Detail

A BAS Agent sends a payroll event with an invalid or corrupt ABN value. The validation of the ABN fails and the BMS receives an error message.

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Scenario 3 - Validation of Registered Agent reporting

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-----------------------------------First Name: Ann



-----------------------------------First Name: Holly



-----------------------------------First Name: Joe



-----------------------------------First Name: Pete


Registered Agent ABN validation

ABN Invalid: Error Message to BMS

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Payroll event 1 A BAS Agent’s BMS sends a payroll event for Jen’s Shop (ABN 8888) and Angie’s Shop (ABN 9999) in one file.

When the payroll event is received, the ATO validates the BAS Agent’s ABN.

Registered Agent ABN/RAN validation

Validation of BAS Agent’s ABN failed and an error message is received by the BMS.

The payroll event has not been processed and the BAS Agent will need to ensure that their ABN is correct before resending the payroll event.

Business Guidance

PAYEVNT2 Payer Australian Business Number must be provided for a Registered Agent to be able to submit a payroll event on their behalf.

A valid relationship between the Registered Agent and the ABN holder must exist in ATO systems.

Submission from Registered Agents for ABN payers will be governed by Single Touch Payroll authorisations model in accordance with the Tax

Practitioners Board regulations (noting consultation on nomination processes are in progress).

Business Rules

PAYEVNT2 Payer Australian Business Number is mandatory.


PAYEVNT64 Registered Agent ABN is used as part of the authentication process and also used to identify the organisation submitting the payroll

event.

PAYEVNT65 Registered Agent Number is mandatory for Registered Agents.

References

N/A

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Interactions


PAYROLL EVENT MESSAGE As per ATO Payroll Event MIGRegistered Agent (ABN: 1234)Payer 1 (Jen’s Shop)

Payer 2 (Angie’s Shop)

ATO STP Payroll Event API

Registered Agent (ABN: 1234)Payer 1 (Jen’s Shop)

Payer 2 (Angie’s Shop)


Payroll Event Process Rejection Message

No client relationshipThe client relationship does not exist between given client and business.

1. Payroll event sent through SBR to the ATO using the Payroll event MST. 2. No relationship between the Registered Agent and employer is found to exist on ATO systems.

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7.12.4 Scenario 4 – Registered Agent declaration

Overview

As an STP-enabled Registered Agent, I must provide a declaration on behalf of the employers I am submitting payroll events for.

Detail

A BAS Agent sends payroll events for Jen’s Shop and Angie’s Shop and provides a declaration.

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Scenario 4 - Registered Agent declaration


Registered Agent Declaration Indicator: John Black

Registered Agent Declaration Date: 06/06/2016Registered Agent Declaration Indicator: Y


-----------------------------------First Name: Ann



-----------------------------------First Name: Holly


ABN: 9999Org Name: Angie’s Shop-----------------------------------

First Name: JoeFamily Name: LeePAYGW YTD: 100

Payroll event 1 A BAS Agent’s BMS sends a payroll event for Jen’s Shop (ABN 8888) and Angie’s Shop (ABN 9999) in 1 file. The BAS Agent’s BMS

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includes the Registered Agent declaration fields as part of the payroll event.

Business Guidance

PAYEVNT41 Registered Agent Declarer Identifier, PAYEVNT42 Registered Agent Declaration Date and PAYEVNT43 Registered Agent Declaration

Indicator are all mandatory when submitted by a third party/Registered Agent.

Business Rules

PAYEVNT41 Registered Agent Declarer Identifier is a mandatory alpha-numeric element and is used to identify the person that made the

declaration.

PAYEVNT42 Registered Agent Declaration Date is a mandatory date element and is used to identify the date of the declaration.

PAYEVNT43 Registered Agent Declaration Indicator is a mandatory Y/N element and is used to indicate that the terms stated in the declaration have

been accepted.

References

N/A

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7.13 Transitions These scenarios will outline:

How an employer can transition to Single Touch Payroll during the financial year;

How to report an employee who left employment prior to the transition but within the same financial year; and

When an employer transition in the middle of their BAS reporting cycle.

7.13.1 Scenario 1 – Employer transitions to Single Touch Payroll

Employers can transition to reporting via Single Touch Payroll at any time throughout the financial year. Employers will need to consider the impacts of

transitioning during the financial year.

Employee reporting

The transition will impact employees who have left employment prior to the employer reporting through Single Touch Payroll. Employers can choose either

to report these employees via existing channels or provide employees with payment summaries. They can also report the information through an update

event.

Employer reporting

The transition impacts the reporting of activity statement amounts in the transition period. Where an employer transitions in the middle of an activity

statement period, the employer must update the pre-filled activity statement amounts with any payroll period amounts not reported via Single Touch

Payroll.

Overview

An employer becomes Single Touch Payroll enabled after they successfully submit the first payroll event via BMS.

Detail

James’ Repairs wants to be Single Touch Payroll enabled. During the year he submits his first payroll information through Single Touch Payroll. James’

Repairs has two employees, Sam Smith and Matt Brown.

Sam receives $1000 per month and Matt receives $250 per month as Gross Payments.

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For Scenario 1a, both Sam and Matt are active employees of James’ Repairs at the time of transition to Single Touch Payroll.

For Scenario 1b, Matt ceases employment before employer becomes Single Touch Payroll enabled.

For Scenario 1c, the employer transitions to Single Touch Payroll reporting in the middle of the activity statement period.

Scenario 1a: Both employees continue to be employed during the financial year when employer becomes STP-enabled

Pre STPPayroll event 1

STP

Org Name: James’ RepairsBMS ID: BID123

-----------------------------------Family Name: Smith

First Name: SamGross YTD: 2,000


-----------------------------------Family Name: Brown

First Name: MattGross YTD: 500

Org Name: James’ Repairs

----------------------------Family Name: Smith

First Name: SamGross YTD: 1,000


----------------------------Family Name: Brown

First Name: MattGross YTD: 250

Pre STP James’ Repairs is not STP-enabled. ATO does not have a record of the payroll event.

Payroll event 1 STP James’ Repairs decides to be STP-enabled. They use a BMS to submit the payroll information. ATO records Sam’s Gross YTD and Matt’s Gross YTD which include pre Single Touch Payroll amounts.

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Scenario 1b: One employee ceases employment during the FY but before the employer becomes STP-enabled

Payroll event 1STP


-----------------------------------First Name: Sam

Family Name: SmithGross YTD: 2,000

Update eventSTP


-----------------------------------First Name: Matt

Family Name: BrownCessation Date: 06/07/2017

Gross YTD: 250

Pre STP Matt ceases employment


----------------------------First Name: Sam

Family Name: SmithGross YTD: 1,000


----------------------------First Name: Matt

Family Name: BrownGross YTD: 250

Pre STP James’ Repairs is not STP-enabled. Matt ceases employment on 06/07/2017. The ATO does not have a record of the payroll event.

Payroll event STP James’ Repairs decides to be STP-enabled from 01/08/2017. He pays his employee Sam for the period. He uses a BMS to submit the payroll information.

Update event James’ Repairs sends Matt’s YTD for the current FY through an update event. Matt will be able to view and print payroll

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information via myGov.

Scenario 1c: The employer transitions to Single Touch Payroll reporting in the middle of the activity statement period

Pre STPPayroll event 1

STP


Gross Payments: 1250PAYGW Amount: 250

-----------------------------------First Name: Sam

Family Name: SmithGross YTD: 2000PAYGW YTD: 400


Gross Payments: 1250PAYGW Amount: 250

-----------------------------------First Name: Matt

Family Name: BrownGross YTD: 500

PAYGW YTD: 100

Org Name: James’ RepairsGross Payments: 1250PAYGW Amount: 250

-----------------------------------First Name: Sam

Family Name: SmithGross YTD: 1000PAYGW YTD: 200

Org Name: James’ RepairsGross Payments: 1250PAYGW Amount: 250

-----------------------------------First Name: Matt

Family Name: BrownGross YTD: 250PAYGW YTD: 50

Monthly activity statement prefill

Org Name: James’ RepairsW1: 1,250W2: 250

Monthly activity statement

Org Name: James’ RepairsW1: 2,500W2: 500

James’ Repairs edits the activity statement manually

James’ Repairs edits the activity statement manually

Pre STP James’ Repairs is not STP-enabled. The ATO does not have a record of the payroll event.

Payroll event 1 STP James’ Repairs decides to be STP-enabled. He uses a BMS to submit the payroll information. The ATO records Sam’s Gross YTD and Matt’s Gross YTD that include the pre Single Touch Payroll amounts.

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Monthly activity statement Prefill

The ATO will prefill the activity statement with the period amounts from Single Touch Payroll. The amounts not reported via Single Touch Payroll will not be included in prefill.

Monthly activity statement James’ Repairs edits the activity statement manually to include Pre Single Touch Payroll amounts and submits.

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Business Guidance


Employers must be registered for PAYG withholding prior to submitting their first payroll event;

Employers must have an ABN or WPN to report via Single Touch Payroll;

Employers become Single Touch Payroll enabled by sending a payroll event via BMS;

Only employees paid during the payroll period will be reported in a payroll event;

Payroll information of employees, who worked during the financial year but left employment before the employer becomes Single Touch Payroll

enabled, can be submitted through an update event. This enables employees to view and print payroll information via myGov; and

A payroll event must be received to register an employer for Single Touch Payroll before an update event can be provided.

Business Rules

PAYEVNT22 Payer Total Gross Payments is mandatory, numeric, can be negative and does not include cents.

PAYEVNT20 Payer Total PAYGW Amount is mandatory, numeric, can be negative and does not include cents.

References

BMS Identifier – refer to business scenarios and guidance for BMS identifier.

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Interactions


James RepairsBMS ID: BID123


PAYROLL EVENT MESSAGE As per ATO Payroll Event MIG

Payroll Event Process Return Message

James RepairsBMS ID: BID123

ATO STP Update Event API

UPDATE EVENT MESSAGE As per ATO Update Event MIG

Update Event Process Return Message

1. A payroll event sent through SBR to the ATO using the payroll event MST. 2. On receipt of a payroll event, the ATO will send a return message of a ‘Message Received’ to the BMS. 3. An update event sent through SBR to the ATO using the update event MST. 4. On receipt of an update event, the ATO will send a return message of a ‘Message Received’ to the BMS.

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7.14 Corrections

7.14.1 Scenario – Materiality.

Overview

As an STP-enabled employer, I can report an out-of-cycle payment to an employee in the next payroll event is within the same withholding cycle.

Detail

Sam’s Vans is a STP-enabled business.

Two employees are paid a bonus after the regular pay day. The next regular pay day is within the same withholding cycle.

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Scenario 1 – Employer makes an out-of-pay cycle payment within the same withholding cycle.

Payroll event 8

Org Name: Sam’s VansABN: 321654987

-----------------------------------First Name: John

Family Name: JonesGross YTD: 9,000

Bonus payment Payroll event 9


-----------------------------------First Name: Tom

Family Name: TaylorGross YTD: 9,000


-----------------------------------First Name: John

Family Name: JonesBonus: 3,600


-----------------------------------First Name: Tom

Family Name: TaylorBonus: 3,000


-----------------------------------First Name: John



-----------------------------------First Name: Tom


Payroll event 8 On 20th February 2019 (Q3) John and Tom receive their regular payroll payments of $1,000 each.

Out-of-cycle payment On 25th February 2019 (Q3) John and Tom are paid a one-off bonus.

Payroll event 9 On 20th March 2019 (Q3) The out-of-cycle payment are reported in the March payroll event 9.

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Scenario 2 – Withholding during a period is BELOW the Materiality Threshold.

Overview

As an STP-enabled employer, I can report an out-of-cycle payment to an employee in the next payroll event if the withholding amount is under the

materiality threshold.

Detail

Sam’s Vans is a STP-enabled business. The materiality threshold that applies to the withholding is $2,000.

Two employees are paid a bonus after the regular pay day. The next regular pay day is within the next withholding cycle.

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Payroll event 9


-----------------------------------First Name: John


Withholding: 2,700

Bonus payment Payroll event 10


-----------------------------------First Name: Tom


Withholding: 2,700


-----------------------------------First Name: John

Family Name: JonesBonus: 1,800

Withholding: 600


-----------------------------------First Name: Tom

Family Name: TaylorBonus: 1,500

Withholding: 500


-----------------------------------First Name: John

Family Name: JonesGross YTD: 11,800Withholding: 3,540


-----------------------------------First Name: Tom

Family Name: TaylorGross YTD: 11,500Withholding: 3,450

Payroll event 9 On 20th March 2019 (Q3) John and Tom receive their regular payroll payments of $1,000 each.

Out-of-cycle payment On 25th March 2019 (Q3) John and Tom are paid a one-off bonus.

Payroll event 10 On 20th April 2019 (Q4) The out-of-cycle payment are reported in the April payroll event 10, even though they were paid in the previous month.

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Scenario 3 – Withholding amount is ABOVE the Materiality Threshold and the next payroll event is in the next withholding period.

Overview

As an STP-enabled employer, I must report an out-of-cycle payment as a payroll event when the withholding amount is above the materiality threshold and

the next payroll event is above the materiality threshold.

Detail

Sam’s Vans is a STP-enabled business. The materiality threshold that applies to the withholding is $2,000.

Two employees are paid a bonus after the regular pay day. The next regular pay day is in the next withholding cycle.

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Payroll event 9


-----------------------------------First Name: John


PAYGW YTD 2,700

Out-of-cycle Payroll event


-----------------------------------First Name: Tom


PAYGW YTD 2,700


-----------------------------------First Name: John

Family Name: JonesGross YTD: 12,600PAYGW YTD: 3780


-----------------------------------First Name: Tom

Family Name: TaylorGross YTD: 12,000PAYGW YTD: 3,600

Payroll event 9 On 20th March 2019 (Q3) John and Tom receive their regular payroll payments of $1,000 each.

Out-of-cycle payroll event On 25th March 2019 (Q3) Sam’s Vans must report the out of cycle payments in a payroll event as they are above the materiality threshold

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Business Guidance

Business Rules

Employer is required to report all payments on or before the date of payment to the ATO.

The employer can report using a pay event report on the day of the out of cycle payment.

If the payment and the next regular pay cycle fall inside the withholding period, the reporting of these payments can be deferred until the next

regular pay cycle for that employee.

If the next regular pay cycle occurs in a later withholding period, AND is below the materiality threshold, then the reporting of these payments can

be deferred until the next regular pay cycle for that employee and the payment of the withholding can be deferred to the withholding payment

date of the next regular cycle.

If the next regular pay cycle occurs in a later withholding period, AND exceeds the materiality threshold, then the reporting of these payments can

be deferred to the next regular pay cycle. However the payment of withholding remains due according to the date the employee received their out

of cycle payment.

The materiality threshold is cumulative for the withholding period.

If the next regular pay cycle is in the next financial year, then a pay event up to 30 June must be provided

References

N/A

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