Single Touch Payroll Reporting (STPR)

From 1 July 2018, all 'substantial employers' [employers with 20 or more employees] in Australia are required to use the Single Touch Payroll (STP) system for reporting tax and superannuation. The Australian government is implementing Single Touch Payroll Reporting (STPR) from 1 July 2017, and it becomes mandatory for all such employers.

STP is an Australian government initiative that enables employers to report staff salary and wages (including ordinary time earnings) and PAYG withholding amounts to the ATO at the same time they pay their employees.

Superannuation contribution information is reported to the ATO when payments are made by the employer to the fund.

Single Touch Payroll Reporting (STPR) system is designed to help the Commissioner of Taxation determine whether employers are compliant with their PAYG and superannuation obligations in a timely fashion. This will enable the Commissioner to react promptly to any breaches and increase the amount of compliance activity, especially for the superannuation guarantee surcharge.

Employers will have option to pay their PAYG withholding more regularly. For e.g. at the same time they pay their staff.

Following are the main changes regarding the STPR:

• The reporting of gross wages and PAYG withholding at an employee level to the ATO will need to take place on or before the date the PAYG withholding amount is due. Currently this reporting occurs at an employer level when completing the Activity Statement.

• Salary, wages, ordinary time earnings and superannuation contributions are to be reported at an employee level on or before the payment is made to the super fund.

• Payment summaries will be phased out for employers using the STPR system to report their fringe benefits tax (FBT) and superannuation contributions by 14 July each year.

• Employees will have access to an ATO portal containing real time payroll information and annual reports.

• Employees will have the option to complete superannuation choice and tax file number declarations online. But, employers are still required to provide paper forms to their employees.

• Providing employees with visibility of their total year to date income, PAYG withholding amounts and super guarantee contribution amounts as they accumulate

• To simplify business reporting for employers by leveraging the natural process of paying their employees, to meet their PAYG withholding reporting obligation at the same time

• Once the system has become fully automated, the employers' compliance costs will be reduced, as the reporting requirements and other reporting measures are reduced, such as the reporting of PAYG withholding tax via activity statements.

Benefits of STP

• Providing employees with visibility of their total year to date income, PAYG withholding amounts and super guarantee contribution amounts as they accumulate

• To simplify business reporting for employers by leveraging the natural process of paying their employees, to meet their PAYG withholding reporting obligation at the same time

• Once the system has become fully automated, the employers' compliance costs will be reduced, as the reporting requirements and other reporting measures are reduced, such as the reporting of PAYG withholding tax via activity statements

Information source : 
http://www.mondaq.com
https://www.ato.gov.au/

Salary Budgeting

Using Oracle HRMS, you can set up HR budgets for headcounts and full time equivalents(FTE) at various levels of the organization. Most enterprises need to add salary estimates to these headcount budgets to provide salary budgets. Oracle HRMS provides you with the key information you require to define your salary budgets:

Payroll KPIs - Part II

In continuation to the previous post, the next key performance indicators can be - 

2. PRODUCTIVITY – intends to measure how productive the payroll team as a whole and individually are, by measuring the ratio of payroll people to the number of employees being serviced. Additional metrics allow identification of issues affecting productivity.  Standard metrics include:

Payroll KPIs – Part I

As a Payroll stakeholder, one is responsible for managing what is the greatest cost of one’s organizations and with that comes the continued attention of Finance, C-Level Management and the Board.  You are being monitored and usually measured on cost and efficiency and you are always at risk of being outsourced to a more viable option.

If you are not already measuring, monitoring and acting upon Key Performance Indicators (KPI’s) in your payroll service, you need to start NOW!!

Understanding Australian Payroll Legislation – Part II

FBT: Legislative Details

Fringe Benefits are benefits that an employee receives from their employer in place of salary or wages. Fringe Benefits Tax (FBT) is tax that is payable by the employer for non-salary benefits provided to the employee.

Understanding Australian Payroll Legislation – Part I

PAYG: Legislative Details

Pay As You Go (PAYG) is the system of deducting income tax installments from employees' personal earnings, and remitting the money to the Australian Tax Office (ATO).

Extracting maximum benefit out of you Payroll Data

Unused or underutilized payroll data causes wasted HR staff time, as duplicated efforts and work often ensue to make up for this data gap. Here are several significant areas where your HRMS payroll data can add value to your business:

Integration of AME with Oracle EBS

Following is the list integrating applications within Oracle E-Business Suite that are enabled to integrate with AME -

• Advanced Benefits 
• Bills of Material
• Oracle Deal Management  
• Oracle Price Protection 
• Cash Management 

HR and PAYROLL Interview Preparation - Part IV

1. What is the Process to Reverse a Termination of employee?

You reverse a termination in order to make an employee active again.

Navigation: HR Responsibility >> Enter & Maintain >> Others >> End Employment

Search for the separated employee record  and click on ‘Reverse Termination’ button to undo the termination of an employee. As a result the person will become active employee again.

HR and PAYROLL Interview Preparation - Part III

1. What is the difference between Extra Information Type (EIT) and Special Information Type (SIT)?

EIT and SIT Both are provided by Oracle to Capture Extra Information. Following are the main differences:

• EIT is based on DFF whereas SIT is based on KFF of Person Analysis
• EIT is stored in PER_EXTRA_INFO tables where as SIT is store in PER_PERSON_ANALYSES and PER_ANALYSIS_CRITERIA tables

HR and PAYROLL Interview Preparation - Part II

1. What is Date Track concept in Oracle HRMS?

Oracle HRMS has a date track feature which enables to maintain past, present and future state of data. It enables to maintain the record history by creating a new record when the date track mode is UPDATE and override on the existing record when the Data track mode is CORRECTION

HR and PAYROLL Interview Preparation - Part I

In the next few posts I’ll post a collection of Oracle HRMS related questions which might prove useful for interview preparation

1. Can you call pl/sql package functions from within a Fast Formula?

Yes, It is done through Define Function screen in HR. In this screen we can register the pl/sql as “External Function” and reference it in Fast formula definition

Business Process terminologies explained with a real life example

The below example explains a few of the important terms and concepts used in the Oracle E-Business Suite. This would be a good starting point for the beginners to better understand the concepts behind Oracle Applications

HRMS and PAYROLL Key Flexfields - Part I

In this document I will try to propose a possible way to configure the KFF’s one by one of HRMS & Payroll. One should keep in mind that this is not something carved in stone and the design should be finalized only after thorough study of business and understanding of client’s requirement is done.

Oracle Payroll Taxonomy

For starters, we must know the most common terms associated with Oracle Payroll. We must know the processes and taxonomy in order to understand the basics easily, so here we go.

HR Security Profile - Part II

Restricting Access to Records

You set up a security profile by identifying records of employees, applicants, contingent workers, and candidates in the system which you want users to be able to access. You identify the records by selecting work structures or other criteria in the application to which employees, applicants, contingent workers, or candidates are attached. For example, you could give users access only to the records of employees, applicants, contingent workers, or candidates in a single organization.

DateTrack Feature in HRMS

Being an engineer i always had difficulty handling concept of ‘Date’. However through this article I would try to explain my understanding of DateTrack feature in Oracle Apps.

DateTrack adds the dimension of time to an application's database. It is a means of maintaining a history of changes to personnel records. The value of a DateTracked record depends on the date from which you are viewing the data. It applies to the People and Assignment details of a person’s record in Oracle HR. Each of the areas that are date tracked within a record are date tracked independently. 

Payroll Costing - Introduction

This is one of the most important and vital feature of Oracle Payroll and HRMS on the whole. It’s through the Costing that Human Resources interact with the Oracle Financials (GL). Costing as a concept is to account the cost incurred on an employee in terms of compensation provided to him/her by the organization. Oracle achieves this through three processes - 

Imp HR and Payroll Tables - Part V

>> PAY_INPUT_VALUES_F

Each defined element generally has one or multiple input segment, this DateTracked  payroll table holds the definitions of the input values associated with a specific element. Users can add or modify input values for non–legislative elements.

>> PAY_ELEMENT_ENTRIES_F

This payroll DateTracked table holds the list of element entries for each assignment. The actual values for each entry are held in PAY_ELEMENT_ENTRY_VALUES_F.

Imp HR and Payroll Tables - Part IV

>> PAY_PAYMENT_TYPES

This payroll table holds details of the payment types that can be processed by the system. Used to define specific payment methods in PAY_ORG_PAYMENT_METHODS_F

>> PAY_ORG_PAYMENT_METHODS_F

This payroll table holds the definitions that identify business groups and the organization units within a single business group. Additional information about classifications and information types for each organization is held in HR_ORGANIZATION_INFORMATION