If you pay employees from multiple ABN's, you may use employing entities to do so. You can set up separate details and even separate pay slip logos for each entity. This way, the pay slips will display the relevant entity information rather than the main businesses details.
To add an employing entity, from the payroll dashboard click on the 'Payroll Settings' tab > 'Employing entities' > click on 'Add' in the top right of the screen and complete the fields.
You can add an email address in the 'Pay Slip Notification from Email Address' field so that this email will be used as the Sender email address for pay slip notifications for employees assigned to this entity. If no email is entered here, the system will use the email listed on the pay slips page.
Note: Due to the sensitive nature of payroll information that will potentially be sent from these email addresses and the likelihood of the emails being treated as spam, we have placed restrictions on the email domains we will allow and therefore what emails can be entered in this field. More information can be found here.
Choose a logo - you can upload a corresponding logo for the entity if required.
Default Super Funds - once the entity details have been saved, you can add a default super fund specific to the entity. Click here for more details.
Is this employer exempt from FBT under section 57A of the FBTAA 1986? - If you select 'Yes' for this setting, you will also need to select an 'organisation type'. A further option will then appear, as follows:
The applicable FBT legislation allows a further for salary packaged meal entertainment and entertainment facility leasing expenses. Refer here for further information. If the business is eligible for this, select 'Yes' for this setting. N.B. If the business has multiple employing entities set up, this setting will need to be configured for each entity via the Employing Entities screen.
Electronic Lodgement - once the entity details have been saved, the electronic lodgement option will become available. This will be set to 'disabled' by default. To enable electronic lodgement you will need to contact the ATO. Detailed instructions on how to set this up can be found here:
BMS ID - once the entity details have been saved, the BMS ID for this entity will appear. You need this ID to connect with the ATO before you commence STP reporting. If you have migrated to this payroll system from another payroll system during the financial year and meet the requirements of Scenario 2, Option 2 in this article you can change the BMS ID for this entity and carry over the previous payroll system's BMS ID. To do this, follow the instructions provided here.
Assigning an Employee to an Employing Entity
You can assign an employing entity to an employee by one of two ways. Firstly, you can assign individuals to an entity, or you can 'bulk' assign for a quicker process.
Here's how you assign individual employees to an employing entity:
- Open the employee file and click on the 'Tax File Declaration' page;
- The first field on the screen offers you the option to change the 'Employing Entity';
- You are then able to choose to make the change effective from 'today', 'employee's start date', or 'custom date'.
Here's how you 'bulk' assign employees to an employing entity:
- Payroll Settings -> Employing Entities page;
- Reassign employing entities tab;
- You can select individual employees by typing their names into the 'Employees' field and selecting them from the drop-down list that appears; or
- You can select to bulk reassign All Employees in the business; or
- You can select to bulk reassign All Employees (including terminated employees);
- Once you have determined the employees you wish to change you will then need to choose the new entity the selected employees will be changed to from the New Employing Entity drop-down list. If you only have one other employing entity, this will show as a default option.
- You are then able to choose to make the change effective from 'today', 'employee's start date', or 'custom date';
- Click Change Employing Entities to save.
Things of note in regards to employing entities:
- If you have additional employing entities in your business file, most (but not all) reports will allow you to filter by employing entity.
- You can't have one employee employed by two different entities at the same time.
- Whilst you can process a single pay run with employees from multiple entities, the pay run will still only produce 1 pay run journal. Ie, a separate journal will not be produced for each employing entity. To achieve that, you'll need to split the pay runs and process separate pay runs for each employing entity.
Deleting an Employing Entity
An employing entity can only be deleted if an employee assigned to that entity has never been paid in a pay run. The reason we do not allow users to delete an employing entity once it has been in use is so that historical records, STP reporting and other payroll reports in general are not affected by such deletion.
To delete an employing entity, hover your mouse over the employing entity set up and you will see a red "x" icon:
Clicking on the icon will trigger a delete confirmation dialog. Click 'OK' to confirm deletion of the employing entity:
N.B. If the icon is disabled (i.e. displays in a grey colour) you will not be able to delete the employing entity for the reasons specified above.
Restoring a deleted employing entity
You are able to restore an employing entity by going to Payroll settings > Restore deleted items, and selecting 'Employing entity' from the drop down box. A list of all deleted employing entities will appear and you can click the 'Restore' option against the employing entity that you are wanting to reinstate.
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