Due to popular demand, the following is a step by step list of how to perform single touch payroll. You may notice the name “thousand touch payroll” might be more apt!
I have split it into two sections, first what needs to be done each payroll cycle and second what needs to be done each quarter.
Each payroll cycle
- Post/allocate all bank transactions to the various income and expense accounts within your accounting software package
- Run the bank reconciliation report and check it agrees to the physical bank statement – this is a separate and important step to number 1
- Run the payroll for each employee & check each payslip
- Click the lodge single touch payroll button – it is normally green!
- After 5 minutes check in “payroll reporting” within your software to ensure your STP lodgement has been accepted
- Pay staff the exact net amounts due
- If reporting to the ATO monthly – run the monthly summary payroll report and complete the activity statement via the ATO portal – boxes W1 and W2
- Pay the ATO the tax withheld in W2
- Do all the payroll steps 1 to 7 above for the last month of the quarter, in addition
- Run the GST report for the quarter and insert these figures in the BAS G1, 1A and 1B
- Pay the GST for the quarter and the PAYG for the last month together to the ATO
- Prepare the summary wages report for the quarter to ascertain the super due
- Log onto the Small Business Clearing House (SBCH) or use the pay super function within MYOB/XERO. Enter each employee’s super for the quarter and lodge.
- Pay the super using the BPAY reference given by the SBCH – the payment $ must be identical to enable matching. Super is due by the 28th of the month following the quarter
Not surprisingly this is causing lots of problems for those who chose not to study accounting! Hopefully this checklist will help, so lots of luck, and if you get stuck please call me.
Lindsay 0413 952 180