DescriptionPayroll tax - completing your 2017-18 annual reconciliation
Welcome to this short video on lodging your annual reconciliation.
Before you start you’ll need to gather the following information:
- Your payroll tax customer number and payroll tax express log in details, or AUSkey.
- Your employer type.
- Your Victorian and interstate reconciliation periods.
- A breakdown of Victorian wages for 2017-18.
- Your total interstate wages if you have any for 2017-18.
- Payments made during 2017-18.
- An estimate of Victorian and interstate wages for 2018-19.
- Your most recent fringe benefits tax return, and a breakdown of any regional Victorian wages paid if you are a regional employer.
Let’s go through some of the key things to remember in relation to the annual reconciliation. First, payment references. These need to be accurate. If you mistype a payment reference then the payment won’t automatically allocate, so please check that your payment references are correct.
Your lodgement due date for the annual reconciliation is Monday the 23rd July 2018. Please ensure that you make your lodgement by this date.
Remember to hit the lodge button. If you don’t hit the lodge button we don’t receive the annual reconciliation.
Fourthly, there’s no June return.
Next in the list, keep your contact details up to date. Use this as an opportunity to go into PTX Express, check that your details are accurate – make any amendments as necessary.
Finally, each PTX Express user has their own unique user ID. Multiple people from the same business can all access the system with different access levels. So for example you might have someone who can only enter the data, and then another person authorises the payment. Each of these people within your organisation need to log in with their own user ID, and we’ll show you where you can do this shortly.
Payroll tax customers lodge their reconciliations depending on their employer type. Firstly let’s take a look at a non group employer. They simply lodge their annual reconciliation in PTX Express, and then don’t have to worry about lodging for anybody else.
The complexity arises in a group scenario. So what we have here is a scheduled group. Each of the ordinary members provide their wage data for the year to the DGE. The DGE can then collate all of the groups wages, and then submit a joint group annual reconciliation. This type of group will only lodge one AR for the whole group.
Now the other type of group is a non-scheduled group. Each ordinary member will log in to payroll tax Express, and complete and lodge their own AR. Each ordinary member should elect that their wage data is then sent to the DGE, and what that then does is pre-fill the information into the group return. The DGE will then be able to add their own wage details and then submit the AR on behalf of the group.
Ok so what we’re going to do now is go through a demonstration of lodging your annual reconciliation in payroll tax express. Before we see the system, let’s have a look at the customer profile that we will be using today. We have an ordinary group member who has wages in Victoria, and in other states and territories, and is employing for the full financial year. Most of the screens we will be looking at are the same for non group members and for ordinary group members, we will just have some additional options available to have a look at.
Let’s get started.
Ok so this is the State Revenue Office website www.sro.vic.gov.au . To access the payroll tax information, we need to scroll down and select the PTX Express button. This screen has a lot of useful resources to help you with the payroll tax express system. Let’s look at this section, ‘lodge your annual reconciliation’ – this is the page where you will find all of your annual reconciliation resources. We have a set of frequently asked questions, and also lots of new videos on a wide range of payroll tax topics, so you can access all of these here. Let’s return to the previous page.
We will now go in to the payroll tax express system by selecting log in to PTX Express, and then entering your user name, password or AUSkey information to log in. Remember how earlier I said that every person from your business who logs in to payroll tax express should have their own user ID? To register a new user, select ‘create a login’ and go through the process.
Before you start the process of lodging your annual reconciliation it’s a good idea to check on a few things first. You need to make sure your contact details are correct within the payroll tax express system. So if you have had any changes to your contact information go and update it by selecting ‘update your records’ on the left hand menu.
Next, if you haven’t already, you should register your account details so you can use our pay online feature, that I’m going to show you later in the demonstration. You do this through the register online payment account option in the left hand menu. It’s a four step process where you enter your bank account details, if you want to change the registered account, or if you’ve forgotten your details you can select the same button and enter the new details. This will override the existing saved details that are already in the payroll tax express system.
Now that we’ve checked and updated all of that information we can begin lodgement of our annual reconciliation. To do this we will select the large button in the centre of the screen, let’s click on this now.
To begin the AR let’s select the ‘begin’ link on the right hand side if this years’ period. On the left hand menu we can see that this is step one of six total steps to complete the AR. We need to review all of our details to ensure that they are correct.
First, check your employer details. Next is your reconciliation period. Here you will need to enter the dates throughout the year that you paid wages in Victoria. We’ve paid wages for the full financial year so the default dates are correct. If you only paid wages for a portion of the year you can change these dates. Then it asks if we employed interstate this year. We did so let’s change the radio button to ‘yes’. Now we have to enter the reconciliation period for interstate wages. Let’s put in the full financial year. Next are contact details. You can change them here for the annual reconciliation, but that won’t flow through to your payroll tax express account. So you’ll still need to select update your records to update that as well. Let’s scroll down a little.
If you’ve made any changes on this page you’ll need to add some comments in the additional information section. Now let’s go to the next step.
Step two is where we enter all of our wage details. There is a new section here that allows us to indicate whether we are a regional employer. Let’s tick that box. What you’ll now see is an additional column to add the regional wages. Before we do that let’s add our total Victorian wage data. I’m entering some figures here, I’ve broken the total wages down into the different components – for example $120,000 fringe benefits, and $210,000 of superannuation. Now let’s take a look at the regional component column. Here we can enter the proportion of our wages that are regional. We’re saying that we are a regional employer so let’s put all of our wages as regional. And let’s scroll down the page.
Next we need to enter our total interstate wages. Let’s add a figure here. I’m going to enter $50,000. We need to enter an estimate for our wages for the next financial year. This allows payroll tax express to provide an estimated deduction entitlement for your monthly returns for the following financial year. We aren’t expecting anything to change in this scenario so let’s enter the same amounts as we have for 2017-2018. Finally on this page we need to indicate the other states or territories in which we employed this year, let’s tick NSW and then go to the next step.
So what we are looking at on screen now is an error message. The error message reads ‘your ABN registered business address may not be eligible for the regional rate. Please provide advice.’ So what this means is that the ABN we have used for this demonstration customer is registered in a metro area, and therefore is not eligible to claim the regional rate. If you do get this error and you believe that your ABN is registered in a regional area you can add comments in the box provided and proceed with the regional rate. We’re going to un-tick the regional box for today – there we go – now as you can see the regional component column has disappeared. We’ll scroll down.
Now we’re at the next step which is to review payments. On this screen you will see all of the payments you’ve made throughout the year on the monthly returns, so make sure you check all of these against your records to ensure they are correct. In our demonstration we’ve got consistent payment amounts, we’ve also got consistent payment dates, which is unlikely to replicate what you would have at your end. You need to be checking actual dates and actual amounts to ensure that no payments have gone missing. If you do notice a discrepancy you can change it here, that’s a free text field, so you can make the change to the total payments made, for example if you made a payment that isn’t shown you could add details of the payment, the amount, the date, and the time that it was paid – so then we can go through and locate that payment for you at our end.
The next section is asking about authorisation. This is a specific section for members of a payroll tax group. If you’re not a group member you won’t see it, but what this authorisation means is that your payroll tax annual reconciliation information will be sent to the designated group employer – it makes it much easier for them to complete the annual reconciliation on behalf of the group so we recommend there that you say yes. So that’s the payment screen, let’s select next to go to the next step.
Here is our payroll tax calculation, based on the information that we have entered today. Because we are an ordinary group member the deduction amount is zero. If you’re a non-group employer you will see a deduction amount here. The full deduction entitlement this year is $625,000. This will be apportioned if you have interstate wages or if you employ for a portion of the financial year. We can see that the amount payable for the AR is $9700. As a group member we can nominate the payer – either pay it ourselves or nominate the designated group employer to pay it for us – with their permission of course. Let’s pay it ourselves this year, and move on to the next step.
We’re almost finished our AR, but we haven’t lodged it yet. Remember the SRO doesn’t receive your return until you hit the lodge button. Before you lodge you can get a PDF summary of the info that you’ve added. So before you hit lodge if you’ve got any feedback you’d like to provide us, or any suggestions on how we could improve the payroll tax express system please enter them here, and then hit the all important lodge button.
That’s it, we’ve reached the final step – the final step is to pay the liability. You can download a final summary of the AR here. Lodgement and payment of the liability is due by the 23rd July 2018. The preferred payment method is ‘pay online’ this allows you to register your bank account and then all you need to do is authorise the payment. The State Revenue Office does not direct debit from your account without your authorisation, you are in control of the payments and need to have authorised a payment in order for it to come out of your account. You can also access other payment options from this screen. If you choose to use a different method just make sure that you check and double check your payment references. Let’s select pay online.
Now we’ve already registered our bank account details so all you need to do is confirm and authorise the payment. We can modify the payment amount, enter the payment date – this is especially helpful because you can set a future date for the payment, you can lodge prior to the 23rd July but then future date the payment to the 23rd.
We can also see who the authoriser is for the payment. On the right we see the summary of our liability again – let’s select next.
Now this is the authorisation screen. As we have the required access we can authorise this payment. Your internal payroll tax administrator can modify user access levels for your system within payroll tax express. Let’s hit authorise.
There we go, our online payment is successful. Let’s select continue.
And here we are at the final stage – there is a green box on the screen confirming that we have lodged the AR, and there is a link to access the PDF summary again if you’re wanting to have a look at it. We can see that the status is currently set at lodged. We can view our payment, or even edit the return. Now remember you can go in and change and re-lodge your return as many times as you like, just make sure your final version is completed and paid before the due date of Monday the 23rd July.
To wrap up the presentation today let’s take a quick look at how you can correct any errors.
Now if you’ve made any mistakes on your monthly returns you can just adjust these through the annual reconciliation, by amending your wage amounts and wage components. As I mentioned you can re-lodge your AR up to the due date. We’ll always take the most recent lodgement to be true and correct.
To change a prior year annual reconciliation you’ll need to contact us and provide your amended wages. Easiest way to contact us would be through our website sro.vic.gov.au/contact us and you can fill out our online form.
We’re obviously available as well over the phone on 132 161, or you can visit our website sro.vic.gov.au.
Thanks for watching, good luck lodging your annual reconciliation.