MYOB Acumatica — Payroll automatically updates some rates and thresholds to keep you compliant. However, you need to manually set up fringe benefits and Single Touch Payroll Phase 2.
Before getting started, complete and close all pays for the financial year being updated, and make sure you're familiar with the payroll compliance changes for the new financial year.
You must complete these procedures before closing your first pay of the new tax years.
Verify your data and system setup
Check company contact details
- Company ABNs – On the SBR Registration tab of the Payroll Preferences screen (MPPP1100), make sure that each company has an ABN and software ID.
- Contact details – On the General Settings tab of the Payroll Preferences screen, make sure that the contact details are correct for the person in your company who's in touch with the ATO.
- Company data – Make sure that the details on the Companies screen are correct (CS1015PL).
- Check for errors in your data. Although this feature was introduced to validate data for Single Touch Payroll, you can also use it to before the start of a new financial year. There are two places in MYOB Acumatica — Payroll where you can use this feature.
- If you're using STP Phase 1, you can use the Check Company Data screen (MPPP5020).
- If you're using STP Phase 2, you can click Check data on the STP Phase 2 tab of the Payroll Preferences screen (MPPP1100).
Check pay item and pay distribution details
- Pay distribution – For each employee, go to their Pay Details screen and make sure that the information on the Settings and Pay Distribution tabs are correct.
- Pay items – Make sure that pay items are configured correctly. For example, that pay item categories are correctly set up for STP reporting.
Check employee taxation details
For each employee, go to their Pay Details screen and make sure that the information on the Taxation tab is correct. You should verify their residency status, tax offsets, student loans etc. are set up correctly for taxation purposes. Then make sure that the information on the Payroll Taxation tab is correct.
Reporting fringe benefits (RFB)
If you have employees with reportable fringe benefits, you need to report these to the ATO via an STP pay event. This section explains how to:
- Set up MYOB Acumatica — Payroll for reporting exempt and non-exempt fringe benefit payments.
- Load reportable fringe benefits amounts.
- Send the pay event data to the ATO after completing the reportable fringe benefits pay run.
1. Create a fringe benefit pay item type
By default, MYOB Acumatica — Payroll includes a Fringe Benefit Reporting pay item type, which you can assign to fringe benefit pay items that are liable for payroll tax. However, you need to create another pay item type for fringe benefits that aren't liable for payroll tax.
- Go to the Pay Item Types screen (MPPP2160).
- On the form toolbar, click the Add Row icon.
- Complete the Pay Item Type ID, Pay Item Type and Description fields.
- Leave the Payroll Tax Liable checkbox unselected.
- On the form toolbar, click the Save icon.
2. Create fringe benefit pay items
To correctly update MYOB Advanced Payroll for reportable fringe benefits, you'll need up to four pay items with different settings for how the amounts will be reported.
The table below shows which settings to select for different types of reportable fringe benefits. You can select these settings in the Fringe Benefit Reporting section of the Additional Info tab on the Pay Items screen (MPPP2210).
Need a refresher on creating a pay item? See the Creating a pay item support article.
|
Type of reportable fringe benefit |
Pay item settings |
|---|---|
|
Non-exempt. Amounts to be entered are already grossed-up. |
Select only the Apply grossed-up multiplier checkbox.
|
|
Exempt. The amounts to be entered are already grossed-up |
Leave both checkboxes unselected.
|
|
Non-exempt. The amount to be entered haven't been grossed-up. |
Select both checkboxes: Apply grossed-up multiplier and Fringe benefits are exempt from Fringe Benefit Tax.
|
|
Exempt. The amounts to be entered haven't been grossed-up |
Select only the Fringe Benefits are exempt from Fringe Benefit Tax checkbox. |
3. Update reportable fringe benefit amounts
The fringe benefit tax year is from April 1 2024 to March 31 2025. The Pay Period End Date should be no later than March 31 2025.
If the Pay Period End date is after March 31 2025, the reportable fringe benefit won't appear in the correct fringe benefit tax year.
The Physical Pay Date needs to be in June 2025, otherwise the pay event sent to the ATO will be rejected.
Employees can only be added to a current pay run on the fly if their pay frequency matches the pay run frequency. If they are added to a current pay run, then the standard pay of that frequency is brought into the pay run. To avoid having to go into each employee and manually delete the pay elements, we recommend adopting the following workflow to update reportable fringe benefits.
- Go to the Pay Groups screen (MPPP2710).
- On the form toolbar, click the Add Row icon.
- In the new row, complete the fields as follows:
Field
Details
Pay Group ID
Something related to fringe benefit, like FBT or RFB.
Description
Reportable Fringe Benefits
Hours per Day
0.0000
Hours per Pay
0.0000
Hours per Year
0.0000
Pay Frequency
Annually
Pay Default
N/A
Last Pay Period Start Date
01/04/2023
Last Pay Period End Date
31/03/2024
Last Physical Pay Date
21/06/2024
Active
Select the checkbox
- On the form toolbar, click the Save icon.
- Go to the Employee Pay Groups screen (MPPP2250).
- Select the Employee from the search window or enter the Employee ID.
- Add the new Reportable Fringe Benefits pay group.
- On the form toolbar, click the Save icon.
You can go into each Pay Details for each employee attached to the RFB pay group and add the pay item to the standard pay or you can add the pay item to a current pay on the fly.
4. Load reportable fringe benefit amounts
- Once all the employees have been updated, go to the Manage Pays form (MPPP4110) and click Create Pay. The Create New Pay window opens.
- Select the fringe benefit pay group.
- Enter the pay dates:
- Pay Period Start Date – 1/04/2024.
- Pay Period End Date – 31/03/2025
- Physical Pay Date – 21/06/2025
- Click OK.
- Open the pay run by clicking the pay run ID.
- Open each employee’s pay and add the fringe benefits pay item that matches the reporting requirements of that employee’s fringe benefit.
When STP is active, you MUST enter a date for the Physical pay date no later than 30 June of that financial year. Having a physical pay date of 31 March would be outside of ATO reporting requirements.
5. Send the pay event data to the ATO
- Once all employees have been updated for RFB, then return to the pay run by clicking the pay run ID.
- Process pay run:
- On the Pay Run Details form from the main toolbar, select Process.
- Read the pop-up message that says no further changes are possible while the pay is being processed. If you're happy with the pay, click OK. The pay run status changes to Processing.
- Complete pay run:
- On the Pay Run Details form from the main toolbar, select Complete.
- Read the pop-up message that says all reportable fringe benefit pay information will be finalised. If you're okay with that, click OK.
- Read the STP declaration. If you agree, select the I agree checkbox and click OK. The pay run is complete.
Finalise your STP reporting
The last step for end-of-financial-year procedures is to finalise your STP reporting. On the STP Finalise screen (MPPP5023), you can submit a finalisation event to the ATO. You must send your finalisation event for the current tax year before July 14 2025.
After finalising, your employees can access their information in ATO site to complete their income tax return.
For more information about finalising your STP reporting, see Single Touch Payroll. These pages also cover the changes for STP Phase 2. All customers must use STP Phase 2 unless you have a deferral from the ATO.