Standard Business Reporting for a Large Business

Transcription

1 Standard Business for a Large Business User Experience Testing October 2008 The following scenario was developed to test the high level end-to-end design of Standard Business. The examples used are indicative of the design at October 2008 and may change. For further information, or to be involved in future user testing please contact SBR@treasury.gov.au.

2 What is SBR? SBR is a multi-agency program that will reduce the regulatory reporting burden for business by: removing unnecessary & duplicated information from government forms adopting a common reporting language using international standards & best practices utilising business software to automatically pre-fill government forms making financial reports to government a by-product of natural business processes providing an e-interface that enables business to report to government agencies directly from their accounting software, which will provide validation & confirm receipt of reports providing business with a single secure online sign-on to the government agencies involved Let s see how SBR might work for a large business using SBR to lodge their payroll tax and tax file number declaration forms.

3 Business information Business name: Owner/Operators: Industry: Age of Business: 80 years Life cycle stage: Office Locations: Business Structure: Annual turnover: Net assets: Employees: LBI Manufacturing Pty Ltd Widely-held shareholding Food Product Manufacturing Established/growth strategy Sydney, NSW Public group with trusts and joint ventures $850 million $1 billion 1,200 permanent and 300 part-time Intermediaries: Accountants & Legal Advisor Accounting software: SAP Agencies : Australian Taxation Office All State Revenue Offices Australian Securities and Investments Commission Australian Bureau of Statistics (non-government body) Australian Stock Exchange LBI Manufacturing

4 Business detail LBI Manufacturing is a local producer of food and beverage products for the domestic Australian market. It is also involved in exclusively distributing brands from overseas food production companies for which distribution agreements have been entered into. The group is comprised of 15 wholly owned subsidiaries, which includes three trusts and three joint ventures The company group owns their own production and distribution facilities, as well as most of the food processing machinery and equipment it uses. It currently employs 1,200 permanent and 300 part-time staff. Shareholding in the group is widely-held. It is considering expanding its business operations into South East Asia over the next five to ten years.

5 Business detail (cont.) The business operations have an annual net turnover of approximately $850 million a year. It holds $1 billion in net assets since past financial year. Profitability will vary depending on such factors like: seasonality conditions, the size of their active workforce, government regulation, product and industry life-cycle, level of market share, and changing consumer preferences. LBI Manufacturing have their 1200 employees split between their NSW, ACT, QLD and SA branches, with a majority in NSW. LBI Manufacturing has three internal divisions made up of 38 employees that are responsible for all reporting to government agencies for the company itself, and its 15 wholly owned subsidiaries. These divisions are Human Resources and Payroll, Taxation, and Finance. However, due to the complexity of its business operations, it relies on the supplementation of an external accounting and legal advisory firm to ensure compliance with the law.

6 Annual reporting obligations 200XX 201XX financial year JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN Pay-roll Tax Activity Statement Pay As You Go Income Tax Return Super Statements PAYG Summaries Financial Reports lodged monthly (for all states), plus the annual reconciliation lodged monthly to report an estimate and make payment for LBI Manufacturing s GST and PAYG withholding tax. lodged monthly to report wage taxes withheld from employees and to pay instalments toward liability at the end of the financial year. On every quarter, the PAYG returns are incorporated in their quarterly BAS forms. lodged at the end of each financial year (due on the 15th of January) to amend any over or under payments derived from payments made at amounts reported on the BAS and PAYG returns. lodged monthly to report super payments to employees lodged yearly to the Tax Office and to employees lodged bi-annually to fulfil ASIC reporting obligations via the ASX

7 LBI Manufacturing is required to lodge their payroll tax. Let s see how it is completed using SBRenabled software. Note: LBI s CEO has authorised the company s Senior Accountant, Robyn, and Accounts Clerk, Jane, to obtain their own credential for LBI Manufacturing - this will allow proper access to SBR services.

8 View obligations Amet consecteteur help print connected LBI s Senior Accountant, Robyn, has finalised all of her previous month s payroll accounts. She views the obligations list within her SBRenabled software to see what up-andcoming obligations she has. Today (7 th July 2012) This week Monthly Payroll tax (ACT) Monthly Payroll tax (QLD) Monthly Payroll tax (NSW) Monthly Payroll tax (SA) Q4 QBIS (ABS) Reminder Good morning Robyn, your Monthly Pay-roll Tax return is due today for: 7 th July 7 th July 7 th July 7 th July 8 th July Robyn is reminded that she has to lodge and pay her company s monthly payroll tax today. She selects the first State Revenue Office (SRO) on the list. In this case its New South Wales (NSW). QLD In the next 4 weeks NSW Payroll Annual reconciliation SA (ACT) Payroll Annual reconciliation (QLD) Payroll Annual reconciliation (NSW) Payroll Annual reconciliation (SA) Monthly BAS (ATO) ACT 21 st July 21 st July 21 st July 23 rd July 28 th July

9 Calculate payroll tax Amet consecteteur help print connected Robyn reviews the report which has been automatically populated (auto-filled) by her SBRenabled software. Some of the information that is auto-filled comes from the BAS and PAYG- W payment summary reports she has completed previously. Monthly Payroll Tax (NSW) Part A 1. Employer Name 2. Correspondence address 3. Contact details for person lodging the payment 4. ABN Part B 1. Employer status (DGE/NGE) LBI Manufacturing 12 Dickson Way Sydney NSW 2000 Robyn@LBI.com.au PAYROLL TAX CALCULATION: $xxxx.xx for xxmonth 20XX (due on 7 July 20XX Interest will be charged on this amount if it is not received by the due date. She checks if the calculated payroll amount is correct. Some questions are not auto-filled because the data is not in her system. She has to complete those fields manually. This additional information including any changes Robyn makes is captured back into the software. Part C Calculate for calendar month only 1.Gross salary and wages 2.Allowances 3.Bonuses VALIDATE $ xxxxxxx.00 $ 0.00 $ 0.00

10 Software validation Once Robyn has completed the monthly payroll tax return, she can use the validate function in her SBR-enabled software to check the report prior to lodgement. This is the first in a series of validation checks. Software validation will do a check for some of the calculations and data formatting. Validation x x CANCEL VALIDATE Payroll Select reports for validation check. This may take several minutes. Monthly Payroll Tax My business software Successfully validated 1 Items CONTINUE Where an error occurs, Robyn can correct the error, re-validate that report only, and then move on. This saves her time, as well as making the report more accurate than it would have been prior to SBR.

11 Lodge Amet consecteteur help print connected Monthly Payroll Tax (NSW) To lodge the monthly payroll tax return to the NSW SRO, Robyn clicks on the lodge button, selects her credential in the software and enters her password. Part A 1. Employer Name 2. Correspondence address 3. Contact details for person lodging the payment 4. ABN Part B 1. Employer status (DGE/NGE) LBI Manufacturing 12 Dickson Way Sydney NSW 2000 Robyn@LBI.com.au PAYROLL TAX CALCULATION: $xxxx.xx for xxmonth 20XX (due on 7 Month 20XX Interest will be charged on this amount if it is not received by the due date. Please enter your passowrd Part C Calculate for calendar month only 1.Gross salary and wages 2.Allowances 3.Bonuses $ xxxxxxx.00 $ 0.00 $ 0.00 ABN: Name: Robyn Password: ********* LODGE OK

12 Online validation Payroll lodgement processing... A check will then be performed to ensure that the correct classification of her information (the SBR Taxonomy), has been used to create the report. Thank you for your lodgement. Please wait while your lodgement is checked. At this point, her report may be either rejected or accepted depending on the version of the taxonomy that Robyn s SBR-enabled software is using. If the taxonomy is current, the lodgement will proceed. CANCEL PLEASE WAIT... CONTINUE

13 Confirmation of lodgement Robyn is provided with a real time receipt confirming lodgement. She is also given the payment details, including the payment reference number. She can then use any of the existing payment facilities for the NSW SRO, as the payment itself is completed outside of her software. She can save and print the confirmation for her records. CONFIRMATION Your pay-roll tax lodgement is successful. Your payment of $xxxx.xx is required by X Month 20XX. Your reference number for this transaction is 295J9TZ LOGO Monthly Payroll Tax lodgement Confirmation LBI Manufacturing 12 Dickson Way SYDNEY NSW 2000 Contact: Robyn Monthly Payroll Tax MONTH 20XX amount payable EFT Payment Details: BSB: Acc: Ref #: 29539TZ BPAY Payment Details: Biller Code Acc number: 29539TZ Balance $xxxx.xx $XXXX.XX SAVE PRINT

14 View lodgement calendar Amet consecteteur Robyn has now completed her monthly payroll obligation for NSW SRO, she continues with the monthly payroll tax return for the ACT SRO. Today (7 th July 2012) Monthly Payroll tax (ACT) Monthly Payroll tax (QLD) Monthly Payroll tax (NSW) Monthly Payroll tax (SA) 7 th Month 7 th Month 7 th Month 7 th Month help print connected Robyn follows the same steps to complete her monthly payroll obligations for each state. She can do this simply by selecting the relevant report from the list on her SBR-enabled software. This week Q4 QBIS (ABS) In the next 4 weeks Payroll Annual reconciliation (ACT) Payroll Annual reconciliation (QLD) Payroll Annual reconciliation (NSW) Payroll Annual reconciliation (SA) Monthly BAS (ATO) 8 th Month 21 st Month 21 st Month 21 st Month 23 rd Month 28 th Month

15 View lodgement alender Amet consecteteur help print connected Now that Robyn has completed her final monthly payroll obligation for this month, she wants to finalise the financial year by doing the annual reconciliation. She can do this simply by selecting the relevant report from the list on her SBR-enabled software. Today (7 th July 2012) Monthly Payroll tax (ACT) Monthly Payroll tax (QLD) Monthly Payroll tax (NSW) Monthly Payroll tax (SA) This week Q4 QBIS (ABS) In the next 4 weeks Payroll Annual reconciliation (ACT) Payroll Annual reconciliation (QLD) 7 th July 7 th July 7 th July 7 th July 8 th July 21 st July 21 st July Payroll Annual reconciliation (NSW) 21 st July Payroll Annual reconciliation (SA) Monthly BAS (ATO) 23 rd July 28 th July

16 Generate & lodge annual reconciliation Robyn generates an annual reconciliation report from within her SBR-enabled software. The software creates a report with pre-filled fields. It can do this because Robyn s credential allows her system to access to the required information from the NSW SRO. The report s calculations can have three outcomes: 1. Zero balance no further action required. 2. Further payment required a reference number is provided. 3. Overpayment a refund is due, and a reference number is provided. ABN: Name: Today (7 th July 2012) This week In the next 4 weeks Password: Amet consecteteur Last logged in: 15 June 2007 at 2:33pm Q4 QBIS (ABS) 8 th July 2012 Wednesday 7 th July 2012 Last logged in: 15 June 2007 at 2:33pm Monthly Payroll tax (SRO-X) 7 th July 2012 Monthly Payroll tax (SRO) 7 th July 2012 Monthly Payroll tax (SRO) 7 th July 2012 Please enter SRO your passowrd X: Annual Reconciliation Monthly Payroll tax (SRO) 7 th July Robyn Payroll Annual reconciliation (SRO-X) 21 st July 2012 Payroll Annual reconciliation (SRO) 21 st July 2012 Payroll Annual reconciliation (SRO) 21 st July 2012 ********* Payroll Annual reconciliation (SRO) 23 rd July 2012 Monthly BAS (ATO) 28 th July 2012 help print connected Amet consecteteur The Courier Company Annual Reconciliation for ANNUAL TAXABLE WAGES 1. Employer Name 2. Correspondence address 3. Contact details for person lodging the payment OK 4. ABN 1. Total gross QLD wages 2 Total gross Australia-wide wages 3 Total tax payable to STATE 4 Total tax paid to QLD 5 Balance CONFIRMATION Wednesday 7 th July 2012 help printconnected Your pay-roll tax annual reconciliation lodgement is successful. Your payment of $xxx.xx is required by X Month Your reference number for this transaction is AR95J9TZ Payroll Tax Annual Reconciliation lodgement Confirmation LBI Manufacturing 12 Dickson Way SYDNEY NSW 2000 Contact: Robyn Payroll Tax Annual Reconciliation xx Month 20XX amount payable $XXX.XX EFT Payment Details: SUBMIT BSB: Acc: Ref #: AR95J9TZ BPAY Payment Details: Biller Code Acc number: AR95J9TZ Balance SAVE $XXXX.XX PRINT

17 Generate & lodge (cont.) Robyn continues to generate the annual reconciliation report from within her SBRenabled software, for each of the other states. Robyn uses her credential and the software creates each of the report with prefilled fields (from information provided by the SRO s), and autofills the other fields from the updated information in her software. It is now much simpler for Robyn to complete the Payroll Tax obligations for multiple states, as her software can quickly produce the reports with minimal input required from her. CONFIRMATION CONFIRMATION CONFIRMATION Your pay-roll tax annual reconciliation lodgement is Your pay-roll successful. tax annual Your reconciliation payment pay-roll of tax lodgement $xxx.xx annual CONFIRMATION is reconciliation required by X lodgement Month is successful. Your payment Your reference successful. of $xxx.xx number is Your required payment for this by transaction X of Month $xxx.xx is is required AR95J9TZ by X Month Your reference number for Your this reference transaction Your number is pay-roll AR95J9TZ for this tax annual transaction reconciliation is AR95J9TZ lodgement is successful. Your payment of $xxx.xx is required by X Month Payroll Tax Annual Your Reconciliation reference number for this transaction is AR9453TZ Payroll Tax Annual lodgement Reconciliation Payroll Confirmation Tax Annual Reconciliation lodgement LBI Confirmation Manufacturing lodgement Confirmation Payroll Tax Annual Reconciliation LBI Manufacturing LBI Manufacturing 12 Dickson Way lodgement Confirmation 12 Dickson Way SYDNEY NSW Dickson Way SYDNEY NSW 2000 SYDNEY NSW 2000 Contact: Robyn Contact: Robyn Contact: Robyn LBI Manufacturing 12 Dickson Way SYDNEY NSW 2000 Contact: Robyn Payroll Tax Annual Reconciliation Payroll Tax Annual Reconciliation Payroll xx Month Tax 20XX Annual amount Reconciliation payable $XXX.XX xx Month 20XX amount payable xx Month $XXX.XX 20XX amount payable $XXX.XX EFT Payment Details: Payroll Tax Annual Reconciliation EFT Payment Details: BSB: EFT Acc: Payment Details: Ref #: AR95J9TZ xx Month 20XX amount payable $XXX.XX BSB: Acc: BSB: Ref #: AR95J9TZ Acc: Ref #: AR95J9TZ BPAY Payment Details: EFT Payment Details: BPAY Payment Biller Details: Code BPAY Payment Acc number: Details: BSB: AR95J9TZ Acc: Ref #: AR9453TZ Biller Code Acc Biller number: Code AR95J9TZ Acc number: AR95J9TZ Balance BPAY Payment Details: $XXXX.XX Balance Balance Biller $XXXX.XX Code Acc number: $XXXX.XX AR9453TZ SAVE PRINT SAVE Balance PRINT SAVE PRINT $XXXX.XX SAVE PRINT

18 Meanwhile, with business progressing well LBI Manufacturing have employed new staff. As a result, the company is required to lodge a Tax File Number Declaration form with the Tax Office for each employee. Let s see how this can be completed using SBR-enabled software.

19 Enter information into system LBI s payroll clerk, Jane, is responsible for lodging TFN declarations for the business. New employee (Smith, John) Personal details Payroll Wages Super Entitlements To complete any other fields that are not auto-filled from the SBR-enabled software, she refers to the information contained in the new starter packs, which are completed by new LBI employees. As she clicks save, she is prompted to lodge the TFN Declaration details with the Tax Office. OFFER OF EMPLOYMENT Curabitur at mauris ultrices ante rhoncus vehicula. Aenean tempor sagittis orci. Pellentesque habitant morbi tristique senectus PERSONAL et PARTICULARS FORM netus et malesuada fames ac turpis egestas. Pellentesque habitant morbi tristique senectus Name: et netus et malesuada Zoran fames Smith ac turpis egestas. Date of birth: aecenas elementum, 09/10/1977 nisl non faucibus adipiscing, elit risus placerat dui, in posuere dui massa Address: sed eros. Nam fermentum 12 Mystery molestie metus. Regards, lane eros. Nam Double Bay fermentum NSW 2021 molestie metus. Phone number: Mobile number: Superannuation sefhkjsdvhjk fund: sdh Date of birth 09/10/1977 Calculated age Gender 33 Male Start date 09/01/2011 Termination date Employment basis N/A Individual Employment classification Admin officer grade 3 My business software CANCEL You have a new starter. Would you like to lodge a Tax File Number Declaration with the Australian Taxation Office now? Deductions Taxes SAVE CANCEL LATER LODGE

20 Review generated form Because she does not want to waste time lodging each form individually, she ticks the lodge later button. The report will now be added to a list of reports that will be lodged later that afternoon with the Tax Office. Curabitur at mauris ultrices ante rhoncus vehicula. Aenean tempor sagittis orci. Pellentesque habitant morbi tristique senectus PERSONAL et PARTICULARS FORM netus et malesuada fames ac turpis egestas. Pellentesque habitant morbi tristique senectus Name: et netus et malesuada Zoran fames Smith ac turpis egestas. Date of birth: 09/10/1977 aecenas elementum, nisl non faucibus adipiscing, elit risus placerat dui, in posuere dui massa Address: sed eros. Nam fermentum 12 Mystery molestie metus. Regards, lane eros. Nam Double Bay fermentum NSW 2021 molestie metus. Phone number: Mobile number: Superannuation sefhkjsdvhjk fund: sdh 1. TFN: Do you authorise your payer to give your TFN to the trustee of your superannuation fund or to your retirement savings account (RSA) provider? Section A employee details Payroll Tax File Number (TFN) Declaration lodgement Name John Smith 4. Previous family name 5. Your date of birth 09/01/2011 Section B employer details 1. ABN number Registered business name LBI Manufacturing x x Lodge later CANCEL PROCEED

21 Software validation Once Jane has completed the TFN Declaration, she can use the validate function in her software to check the report prior to lodgement. Validation x x Payroll Select reports for validation check. This may take several minutes. Tax File Number Declaration My business software This is the first in a series of validation checks that will occur. Software validation will do a check for some of the calculations and data formatting. CANCEL VALIDATE Successfully validated 1 Items CONTINUE Where an error occurs, she can correct the error, re-validate that report only, and then move on. This saves her time, as well as making her reporting more accurate than it would have been prior to SBR.

22 Lodge Payroll Later that afternoon, Jane uses the functionality in her SBR-enabled software to lodge multiple TFN Declaration reports. All she needs to do is select the reports she wants to lodge, click on the lodge button, select her credential and enter her password. Tax File Number (TFN) Declaration Multiple lodgement x 1. TFN dec: John Smith x 2. TFN dec: Lorem Ipsum x 3. TFN dec: Est vivicatum x 4. TFN dec: Lorus Dues x 5. TFN dec: Fabrati Nus x 6. TFN dec: Conval Amangu x 7. TFN dec: Rovum Allorum [etc] x 33. TFN dec: James Smythe ABN: Name: Password: Please enter you password Jane ********* OK LODGE

23 Online validation When Jane lodges the TFN Declarations, the system checks if she is using the current SBR Taxonomy. In this case, it isn t, but it is still a version that will be accepted by the Tax Office. However, she will receive a notice informing her a more up-to-date version is available. CANCEL lodgement processing... PLEASE WAIT... CONTINUE Payroll Thank you for your lodgement. Please wait while your transmission is checked. My business software! Lodgement Accepted Updated SBR Taxonomy is available The version of the taxonomy used for this lodgement is not the latest. The latest version may Okay

24 Confirmation Jane receives a receipt in real time that confirms delivery of his report to the Tax Office which she can save for her records. My business software Successfully lodged (processing pending) 33 Items