ATO Supplier Settings can be accessed and updated by clicking on the 'Payroll Settings' tab of your payroll dashboard, then click on ATO Supplier Settings under the 'Business Settings' heading.
ATO Supplier Settings
These details are used to populate the supplier information when generating reports to be submitted to the ATO.
The first setting requires you to select the applicable scenario of the business. That is, who will be submitting reports to the ATO on behalf of this business. The three options available are:
1. The Employer
This option should be selected if no external TAX/BAS Agent will be lodging submissions to the ATO on the business's behalf and there is only one employing entity set up in the business.
If you have selected "As the Employer", you will be required to complete the following information:
- Branch Number*
- Address Line 1
- Address Line 2*
- Contact Name
- Signatory Name* (only required to be completed if you want the name on the payment summaries to be different to that entered in the 'Contact Name' field above)
- Phone Number
- Fax Number*
- Is this employer exempt from FBT under section 57A of the FBTAA 1986? (If you select Yes here, a dropdown list will appear and you will need to select what exemption the business falls under. This setting is crucial as it will be used in determining what FBT amounts are exempt and taxable when submitting pay data to the ATO.
N.B. The items marked with an asterisk (*) are not compulsory fields.
2. A Registered TAX/BAS Agent
This option should be selected if an external TAX/BAS Agent will be lodging submissions to the ATO on the business's behalf, even if there is one or more employing entity set up in the business.
The ATO have reported that users lodging STP reports on behalf of clients are considered to be providing a payroll service and will therefore need to be registered as an agent with the Tax Practitioner Board (TPB).
For further information, visit Registered agents providing a payroll service on ato.gov.au.
This setting is broken up in 2 sections: (a) the TAX/BAS Agent details and (b) the Business details. The business details fields required to be completed are identical to the "As the Employer" details above.
The additional details required to be completed pertain specifically to the TAX/BAS Agent themselves and are as follows:
- Tax Agent Number
- Contact Name
- Phone Number
- Contact Email
All the TAX/BAS Agent fields are compulsory. You will not be able to save the ATO Supplier Settings without completing all the fields.
3. An intermediary for multiple employing entities
This option should be selected if the employer is lodging all ATO submissions and there is more than one employing entity set up in the business.
This setting is broken up in 2 sections: (a) the Intermediary details and (b) the Business details. The business details fields required to be completed are identical to the "As the Employer" details above.
The additional details required to be completed pertain specifically to the Intermediary themselves and are as follows:
- Contact Name
- Phone Number
- Contact Email
You can choose one of the employing entities to act as the Intermediary or another entity of the business. All the Intermediary fields are compulsory. You will not be able to save the ATO Supplier Settings without completing all the fields.
Copy Business Details
A handy feature in this screen is the ability to "Copy from Business Settings". If you click this button (to the right of the "save" button, it will populate the Business fields from the information entered in the "Details" (Payroll Settings > Details) screen. This function can be used regardless of what ATO setting chosen.
Electronic Lodgement & STP
By default, you will see the Electronic Lodgement & Single Touch Payroll (STO) sections on this screen and both will be disabled.
Enabling electronic lodgement will then allow you to lodge employee tax file declarations and payments summaries online directly to the ATO. You must also enable electronic lodgement before you can enable STP.
To enable electronic lodgement you must contact the ATO on 1300 852 232 where you will be asked to quote your software provider and software ID (this information is located in the Enable Electronic Lodgement box as displayed above. The software ID is a unique number per business and so should not be shared with anyone else outside of the ATO. Once the ATO has provided confirmation, you will then click on "Enable Electronic Lodgement".
It is essential this step is completed correctly otherwise your STP lodgement will fail. Refer here for details on the error that will occur.
To enable STP, simply click on "Enable Single Touch Payroll". The following popup will appear:
If you want to proceed, click on Confirm". Once that is done, you will notice additional sections appear on the screen, being:
- Business Management Software (BMS) ID:This is the unique ID that is used by the ATO to identify your business. You are only required to do something here if you were previously lodging STP events during the financial year using another payroll platform and want to migrate that platform's BMS ID to this platform. Refer below on the rules for changing BMS IDs between payroll systems. To change the BMS ID, click on "Change" whereby the following popup will appear:
Enter the old BMS ID in the relevant field and click on "Save".
N.B. If your old BMS ID is not in the format XXXXXXX-XXXX-XXXX-XXXX-XXXXXXXXXXXX, do not enter the ID in the field. Rather, you must email payroll support and provide them the ID as they will need to enter this manually.
Rules for changing BMS IDs during financial year
As stated previously, this applies to businesses that have already been STP reporting during the financial year and are now moving to another payroll system. The rules and scenarios outlining how to transition from one BMS ID to another mid financial year are as follows:
Option 1: You can change the BMS ID to the original/previous BMS ID if you transfer all YTD employee wages to the new payroll system. Instructions on how to do this are provided above.
Option 2: If you transfer all YTD employee wages to the new payroll system and you DO NOT want to revert to the original/previous BMS ID (that is, you want to keep the new BMS ID) you will need to zero the employee YTD values from the old BMS ID (and hence old payroll software). This will need to be done via an update event in order to prevent duplicate information being submitted to the ATO.
Option 3: If you do not transfer YTD employee wages to the new payroll system and you DO NOT want to revert to the original/previous BMS ID (that is, you want to keep the new BMS ID), you will be required to finalise employees reported under the original BMS ID. That is, the final pay event under the original BMS ID (ie the previous payroll software) will need to be marked as a final pay event.
- Standing Authority Declaration: This section will only appear if the registered TAX/BAS Agent is set as the ATO lodgement type. Where a business's payroll is being prepared and submitted by an authorised registered agent (ie a TAX/BAS Agent), a declaration should be made by the employer or authorised employee at the time of providing the information to the Agent and the wording of the declaration should be in accordance with the requirements set out within the Taxpayer Declaration Guide. (NB. Keep a signed paper copy of this declaration on file but you do not need to attach this form anywhere in the platform.) If this declaration has been completed, you can enter the details of this authority here. You are then able to use the Standing Authority when lodging pay events that include the same payroll information on a defined schedule. For example, an ongoing fortnightly pay run that includes the same payroll information each pay schedule where no ad-hoc payments are being made such as bonuses, commissions, back pays, etc. If the payroll information changes for a particular pay run, the Agent must request client authority prior to lodging the pay event.
To add a Standing Authority, click on "Add Standing Authority" whereby the following popup will appear:(a) Enter the full name and email address of the person who has provided the standing authority, in the form of "[First Name] [Surname] / [email address]"; (b) enter the date the written authority was provided; and (c) click on "Save".
It is not compulsory for a registered agent to have a Standing Authority with their client - that is, it is not essential for STP reporting. All this means is that before you lodge a pay event, you will need to request client authority from within the system. The person(s) appointed to provide the authority will log into the applicable pay event and approve the event. Only after this time will the registered agent have the ability to successfully lodge the pay event.
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