Two Reckon files, one ABN for STP

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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?
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Angelica

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Posted 3 months ago

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Rav, Community Manager

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Hi Angelica,
Is there any differentiation between the two files currently? For example, different branch numbers?
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Angelica

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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.
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?
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Angelica

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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.

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?)    

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Angelica

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They used to be employees of my company, and paid under my ABN. When they were my employees, they were contractors for the parent company and the parent company would just send me the funds for all their payroll obligations such as PAYG, super etc.
The parent company decided to make them employees for the parent company again, so now they are employees under the parent company, and contractors for me. 
Even though they are employees of the parent company, I have continued to process their payroll in my Reckon file with a separate ABN. The parent company still send me all the funds to pay them, pay their super etc.

Before STP this wasn't really a problem because I would simply create the payment summaries to be lodged under the parent company manually.

Effectively my ABN became redundant when the parent company decided to make them employees again. My Reckon file was just a convenient way to continue to process their payroll.

This is why I am worried about my Reckon file ABN not matching the parent company ABN, I have no idea how I am going to be STP compliant.

Thanks again for your help.