Two Reckon files, one ABN for STP

AngelicaAngelica Member Posts: 6
edited September 2019 in Accounts Business Range

Hi

I process payroll for a client with my own Reckon desktop file. This company also processes payroll for their other employees with their own Reckon file. So two payrolls on two different files.

I only do the payroll for about 15 employees, and they have to be kept separate from the rest of the employees in the company for reasons. Even though their payroll is processed by me, their wages are reported to the ATO with the rest of the employees under the main company.

My question is how this is going to work with STP. If I upload my STP file to the main company's gov connect, is this going to wipe the other employees YTD totals?

The ATO say "probably not" but probably isn't really good enough.

Anyone have any ideas?

Comments

  • RavRav Administrator Posts: 10,760 Administrator
    edited September 2019
    Hi Angelica,
    Is there any differentiation between the two files currently? For example, different branch numbers?
  • AngelicaAngelica Member Posts: 6
    edited January 2019
    They are completely separate and under different ABNs, co names etc.
  • RavRav Administrator Posts: 10,760 Administrator
    edited January 2019
    Thanks for getting back to me Angelica,

    If there are two different ABN's and company names involved then for GovConnect STP you will need a STP entity for each respective ABN and report the pay events for the employees that fall under each company/ABN.

    Reckon GovConnect supports multiple STP entities in one Reckon Portal account.

    I'm not quite following this scenario though, particularly when you say the payroll is processed by you under a different ABN but then reported to the ATO by the main company who seem to be a different company with their own ABN.
  • AngelicaAngelica Member Posts: 6
    edited January 2019
    It is a bit of a complicated scenario. Essentially the employees are contractors for the purposes of my company, but they are still employees for the purposes of the main company. Unfortunately it has to be this way.

    If I was to set up a new STP entity for my payroll company under the main company's Reckon Portal account, would the PAYG and wages still be reported to the ATO under the main company? Or would they be reported under the payroll company ABN?

  • AngelicaAngelica Member Posts: 6
    edited January 2019
    Still looking for a resolution for this if anyone else has any ideas.
  • Acctd4Acctd4 Accredited Partner Posts: 895 ✭✭
    edited January 2019
    If I'm understanding correctly, you're saying they are Contractors of your Company? 
    STP only relates to "Employee" payroll not contractors, so you shouldn't need to lodge from your file, only the employer.

    Shaz Hughes Dip(Fin) ACQ NSW, MICB

    Reckon Accredited Professional Partner Bookkeeper / Registered BAS Agent (No: 92314 015)

    Accounted 4 Bookkeeping Services

    Ballajura, WA

    0422 886 003

    [email protected]

    https://www.accounted4bs.com/

  • AngelicaAngelica Member Posts: 6
    edited January 2019
    Thanks for your reply.

    They are a contractor for my company and an employee for the parent company, but the problem is that their payroll is recorded through my Reckon file, including their PAYG.

    So I'm wondering how I would be able to report the PAYG I record in my file to the main company's GovConnect without replacing the data for the rest of the parent company's employees, which it reports through its Reckon file.
    Pretty much the situation is two separate Reckon files that need to be reported under the one ABN for the one company. But my Reckon file has the ABN of my payroll company.
  • Acctd4Acctd4 Accredited Partner Posts: 895 ✭✭
    edited January 2019

    Hi Angelica

    I want to advise you correctly but I'm a little confused as to the specific arrangement that you have with this scenario.  Are you able to explain a little further about how/why the setup is as it is?

    Shaz Hughes Dip(Fin) ACQ NSW, MICB

    Reckon Accredited Professional Partner Bookkeeper / Registered BAS Agent (No: 92314 015)

    Accounted 4 Bookkeeping Services

    Ballajura, WA

    0422 886 003

    [email protected]

    https://www.accounted4bs.com/

  • AngelicaAngelica Member Posts: 6
    edited January 2019
    Hi Shaz

    The payroll is set up so that certain individuals in the company are paid separately to the bulk of the employees. I don't work for the company directly, but I externally process the payroll for these individuals.

    I have my own Reckon file and a company specifically created for processing payroll for these employees. The parent company pays me to pay them. I record their leave, give them payslips, and at the end of the year, I send the company the totals of their gross wages and PAYG to report to the ATO along with the rest of the employees in the company.

    The parent company also has a Reckon file that they record payroll in for the rest of the employees in the company. The parent company has been STP compliant for the rest of the employees for a while now. When 30 June rolls around I am going to have to be STP compliant as well. 

    What I'm wondering is how the parent company is going to be able to report STP figures for these employees, when their PAYG and gross wages is recorded in a separate Reckon file with a separate ABN.

  • Acctd4Acctd4 Accredited Partner Posts: 895 ✭✭
    edited January 2019

    Each software licence (eg both yours & the parent company) will have its own software ID for STP reporting within the Reckon Customer Portal.

    " ... What I'm wondering is how the parent company is going to be able to report STP figures for these employees, when their PAYG and gross wages is recorded in a separate Reckon file with a separate ABN ...

    From what you say here, it sounds like the employees you're paying are paid under a different ABN anyway (yours or another entity of the parent company?)

    When you setup STP, the ABN & (Reckon) Company Info (File) name have to be an exact match to the ABR-listed ABN/name in order for it to recognise it, so is your Reckon Company File set up as you independently, or as the parent company?

    Just to confirm …. these employees are only set up as "employees" in your company file, not the parent company?  You’re saying they're just "paid" by the parent company?

    My understanding would be that you would be lodging the actual STP file from your RA company file.

    (Presumably, you send the parent company the info in order just for them to actually pay these employees & the related payroll liabilities?)    

    Shaz Hughes Dip(Fin) ACQ NSW, MICB

    Reckon Accredited Professional Partner Bookkeeper / Registered BAS Agent (No: 92314 015)

    Accounted 4 Bookkeeping Services

    Ballajura, WA

    0422 886 003

    [email protected]

    https://www.accounted4bs.com/

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