stp

SpinifexIT webinar meet Easy STP
Webinar: Meet Easy STP – A Single Touch Payroll solution by SpinifexIT | December 14, 2018
Webinar: Meet Easy STP – A Single Touch Payroll solution by SpinifexIT | December 14, 2018 1024 512 SpinifexIT

We’re inviting you to join our FREE webinar about our newest solution for Australian Payroll Reconciliation and Single Touch Payroll, Easy STP. The webinar will go live this Friday, December 14, 2018 at 2:00 PM AEDT. Our SpinifexIT Consulting Team Member Tony Vitelli will discuss the following topics in this 20-minute session:

    • What is the STP process and how Easy STP can add some value
    • What is Easy STP and how it can help expedite your full payroll process
    • How Easy STP can help you stay compliant with the ATO
    • What kind of documents can you produce with Easy STP
  • See Easy STP in action (live demo)

Please click here to register and reserve a slot.

If you cannot make it to the webinar due to schedule conflicts,  you can still register to receive a copy of the session within 48 hours. The session will also be posted on our Customer Care Portal under the Easy STP section in Zendesk.

If you have any additional questions before or during the webinar, please send us your inquiries at [email protected].

SpinifexIT Australia Team

[email protected]

Spinifexit blog reconciling single touch payroll
Reconciling Single Touch Payroll
Reconciling Single Touch Payroll 1024 512 SpinifexIT

Reconciliation Considerations

Over the last 15 years, one of my key roles included working with customers in relationship to the Payment Summary process, and in particular, the reconciliation and additional reporting of their Payment Summary data. Just about every SAP customer has had a process to validate the Payment Summary figures. Most of them do this at year end but a large portion of our customers also reconcile on a per pay period basis.

With Single Touch Payroll, you may ask the question of whether there is still a need for Reconciliation, and how you should do this.

The short answer is Yes, there is still the need for Reconciliation to be done.

As the STP solution is still based on Wagetype Configuration and Employee Data (Very similar to Payment Summaries) and given that there is now the need for Transmission to the ATO on a weekly basis, there is still the need for Reconciliation.

To understand this need, the following declaration is part of the new STP process, and as you can see, there is the need to declare that the data is correct prior to transmitting this through to the ATO. 


Most customers I have worked with over the years would be reluctant to just sign off the transmission file without any sort of validation. 

A simple example of what could go wrong is that if a wagetype is not flagged for STP, then it will not be reported to the ATO. Without some form of Reconciliation this can go unnoticed.

The following will give you some areas of reconciliation that we believe will be required:

I Go Live

Initially, during Go Live, there is the need to validate the STP Process. This is not only to check that the support packs have been loaded correctly, it also finds out if your configuration is completely setup and if this process works with your own employee data. 

Some of the areas that you would want to have validation checks are as follows:

  • Verify the STP Mid Year Go Live conversion of the existing Payroll Results over to the new Clusters
  • Validate that the Payroll Run is calculating and updating the STP Cluster tables correctly
  • Check that the STP Reporting process that takes the payroll cluster information (From the new ACRT, SETP and SABN tables) and creates the data for transmission to the ATO

The best approach I can suggest is to ensure that your Payment Summary Reconciliation is up to date so you can compare the original Payment Summary values to the STP values (in the STP tables). NOTE: This is not a 1 to 1 mapping, but should give you an indication that the STP configuration and calculations are correct.

II Normal Pay Runs

Once you have gone live, you would want to have a process to check your STP figures back to what the employee has been paid. Keep in mind that even if everything balances at Go Live, during the normal year, there can be new configuration put into your system, new wagetypes used during payroll, and new scenarios too. (eg. You may have a retrospective pay over the last 2 years that might not report correctly)

Much like Payment Summaries, when customers need to print the final year statements, there is the need to verify the figures in the STP file. It is so easy to miss a wagetype, have a wagetype that is configured to be included in the wrong STP catagory or not flagged for inclusion in STP reporting.

In order to reconcile, most customers have a process where they want to validate the Payments made to the Employee at leave match to what is reported during the STP processing.

Some examples of the reconciliation process include:

Verifying the STP Figures

  • Identifying wagetypes that are paid to the employee (running wagetype reporter is a common process to get these)
  • Mapping these to the STP payments calculated – You might download the STP report data to an excel file
  • Including STP Override values

This is quite a manual process however, as there is the need to keep registers of what wagetypes have been paid to the employee, and build up an extensive Excel Spreadsheet or create other processes.

Either way you reconcile, it is important to have a method to verify your STP figures and of course, the simpler you can make it, the less overhead to you on a per pay period process.

The following items are some things I would recommend when looking to create a reconciliation process.

  1. Think about the aim here and ensure you are following a smart repeatable process
  2. Keep in mind that you need to do this for every pay period so try to make it an easy process
  3. Consider all of your payroll areas and their various frequencies
  4. Remember, employees might transfer payroll areas so make sure your process will cater for this
  5. If you have multiple ABN’s then ensure your process considers this
  6. Ensure that you include terminated employees
  7. Decide on whether you will include the ability to override figures and include this in your process

This is an area that SpinifexIT has worked in for many years, and as part of the new STP solution, we have altered our Easy Payment Summary Reconciliation Solution to also cater for STP.


Meet Easy STP

Some of the areas our Easy STP solution supports include:

  • Configuration Validation – Check the STP Wagetype Configuration and Report ABN Configuration
  • Pre Checking of Master Data – Checks against the employee to ensure data is correct prior to creating STP file
  • Reconciliation Reports – Reconciliation reports for go live (Checking of the STP conversion) and also ongoing Pay by Pay Reconciliation Reports
  • Reporting on STP – Further reports are delivered to report the STP and help reconcile across the entire company
  • Analysis of STP values – Reporting at Employee level with drill down into how the STP values are calculated and from where (Includes overrides)

Existing Easy Payment Summaries customers will receive our Easy STP solution as part of the normal upgrade of our solutions.

Summary

SAP’s STP solution will be released on the 11th October 2018. Now is the time for you to start to plan for your solution’s upgrade and implementation Whilst as a SAP customer, you do have a deferral until May of 2019, we would not recommend waiting too long as there will be quite a lot of work to do.

As part of this preparation, we recommend that you discuss with SAP the option to use their SAP Cloud Platform Integration and also ensure that you involve your technical teams in regards to the SAP HR Support pack upgrade.

For many customers, this also is a large project as upgrading the HR Support packs can take in much new functionality on top of the STP solution, so testing can be quite extensive to ensure that there is no impact on your production payroll.

I will continue to create blogs such as this during the next 6 months. Please visit our STP page on the SpinifexIT website to keep updated with any relevant information.

SpinifexIT blog Are you ready for saps stp deployment
Are you ready for SAP’s STP Deployment?
Are you ready for SAP’s STP Deployment? 1024 512 SpinifexIT

In my previous blog, I’ve shared some of my views about SAP’s Single Touch Payroll (STP) solution and some considerations to keep in mind whilst implementing it to your existing payroll process.

For today’s entry, I will share some technical details for SAP’s STP solution which includes its minimum system requirements, configuration and implementation.

Easy STP

SAP have been talking about the upcoming STP solution and its system requirements in the past 12 months, and now that it’s almost here, it is confirmed that customers are indeed required to be on a minimum SAP HR Support Pack Level in order to load up this new solution.

For customers who are a long way behind on their SAP version, now is the time to start planning for this work. The table below gives you a guide on the minimum level you need to be in based on your existing SAP release. In all cases, the May 10th sync point is the minimum HR level requirement.

Additional Requirements

SAP is delivering the STP solution to their customers as part of their normal upgrade process. However, this is not the complete solution as does not include the ability to physically transmit the file to the ATO via a secure encrypted process.

In order to meet this requirement, additional functionality will be required. SAP’s recommended approach is to use their SAP Cloud Platform Integration (SCPI) solution. You may learn more about SCPI and check out their standard pricing here.  However SAP have agreed on special pricing to enable customers to quickly migrate to STP.  You should speak to your sales representative or partner to discuss this further.

While the ATO does not require the use of SCPI, organisations are expected to comply with its requirement: transmissions and communication should be secure and encrypted following the EbMS3/AS4 protocol. Should you decide to take up SCPI, you will likely need a Test and Production SCPI system as the minimum requirement.

Easy STP

As you can see, the few steps listed above can quickly start to be a larger project. For most customers, this will involve preparing for the following requirements:

Development Environment

The development environment is where you will initially install the system upgrades and configure the new STP solution. The following gives you some high-level guidelines of what will need to be done here.

  • Upgrade system to minimum HR Support levels
  • Install STP solution.  NOTE: If you upgrade the system to the latest HRSP level, then you will not need to install a separate STP update
  • Modify your Schemas, Wagetypes, ABN Details and Setup connections to the SAP Cloud Platform Integration solution
  • Development Unit Testing of the above
  • Test Migration of Clusters to create new STP data
  • Testing of the Payroll runs
  • Testing of the STP Data Creation Reports
  • Once happy with the solution, plan to migrate these changes to Test

Test Environment

The Test environment is where you can test the STP solution with more up to date employee data. It would be a good idea to factor in a copy of your production environment prior to commencing this project so that you can test the entire process including the payroll results conversion on your recent (2019) data. Otherwise, you may be needing to create test data to simulate what will occur in production.

  • Copy the production system or Clone data from production (If you have a tool to do this)
  • Upgrade the environment to the latest support packs (As per development)
  • Import configuration transports
  • Conversion of the payroll clusters
  • Test the STP file creation process
  • Setup of the SAP Cloud Platform Integration solution and liking this to test
  • Test the encrypted transmission to the ATO
  • Test the execution of Payroll runs
  • Retest the STP file creation
  • Retest the transmission to the ATO

Production – Go Live

Once everything is completely tested, you will then have the option to go live with STP.  This will often be done across a weekend as there is the need to upgrade the SAP environment, convert the payroll clusters and perform some additional testing. During go live, you will have steps such as the following:

  • Upgrade the environment to the latest support packs
  • Import Configuration Transports
  • Convert the Payroll Clusters to be ready for STP
  • Perform Additional Testing

The remaining steps then will be part of your normal payroll process.  For example: Next payroll run, you will create the first STP file for transmission to the ATO and transmit it.  

Easy STP

Upgrading your HR Support packs as well as configuring and testing STP may not be a huge change but it will involve some time and effort to complete. Planning ahead is vital to streamline this process. As part of this preparation, we recommend that you also look into the following key activities:

  • Review and modify your payroll business process
  • Plan for your STP project’s resource with consideration to variables such as configuration, data validation, testing reporting, and finalisation
  • Check your SAP HR support pack level and planning for the upgrade if required
  • Explore and finalise your file transmission options:
  • SAP Cloud Platform Integration (SCPI) is the easiest option
  • You can also explore the services provided by your clearing house such as Click Super and Plum
  • Find out more about ATO compliant gateways

Upgrading the HR Support Packs can also bring in a lot of new functionality on top of the STP solution. This may also require more extensive testing to ensure that there will be no impact on your production payroll.

So, here’s Part 2 of my 3-part blog series. Once again, if you’d like to view Part 1, click hereWe’re publishing Part 3 next week, where I’ll talk about the importance of STP reconciliation and how SpinifexIT’s Easy STP solution can make this process faster, better & easier.

Are you a current Easy Payment Summaries user?

We’ve got great news for you! You can avail of our Easy STP upgrade for absolutely NO COST! Our Easy STP solution will be available after October 11, 2018 once SAP releases their STP solution. E-mail us at [email protected] or message our support team through our Customer Care Portal to learn more about the update.

Easy STP
SpinifexIT blog single touch SAP payroll is here
Single Touch Payroll is Nearly Here for SAP Payroll
Single Touch Payroll is Nearly Here for SAP Payroll 1024 512 SpinifexIT

After attending the latest SAP Single Touch Payroll (STP) update session this week and also after using the pilot STP solution, I thought I would write up some detail on what I think of it.

What is Single Touch Payroll?

Single Touch Payroll is a new initiative by the ATO to effectively replace the Year-End Payment Summary process with a new process that reports payments on a per pay period basis.

Single Touch Payroll requirements

This means that there needs to be an STP transmission file containing all of the employees’ pay details created per pay period. This file is then transmitted to the ATO using a Secure Transmission. For this part, SAP are proposing to use their SAP Cloud Integration solution.

STP was set to go live on 1st July 2018 for organisations with more than 20 employees, however, SAP have obtained an exemption for their existing SAP Payroll customers until the 31st of May 2019 – which is roughly 8 months away.

SAP STP Design

After working with SAP Payment Summaries for over 20 years, I was very interested in what is new with Single Touch Payroll and what the impact for existing customers would be to transition to this. I was initially wondering if this would be a large transition for existing customers, or a large implementation.

Luckily the STP solution seems to have been designed with this in mind.  For an existing customer already configured and using Payment Summaries, the transition work should be minimal. There are a few key differences however and these are important to consider during an implementation

Configuration

  • Wagetype Configuration.  STP, like Payment Summaries, requires you to nominate the specific wagetypes that are to be reported during the STP. Previously, for Payment Summaries, this used an Evaluation Class 11 to identify these wagetypes. Using a similar approach, STP will use a new Evaluation Class 13.  The wagetypes must also be culminating to the CRT (Year to Date table) in SAP. These wagetypes need to be reviewed and set up correctly before running the new STP process.
  • ABN Details.  SAP have kept the same approach as the Payment Summary solution here and have reused the same table (T5QGP) to hold the ABN details for the company.  Some additional fields have been including Intermediary Details. We would suggest reviewing all of your ABN details as part of the transition to STP.
  • STP Transmission Settings.  New settings have been added for the transmission side of STP.  These are held in the table view (V_T50BK). Items such as the Auskey ABN, BMS identifier and ports for the transmission need to be setup here.
  • Payroll Schemas. STP will now be calculated during the payroll processing and the results will be stored in new Payroll Cluster tables:

SABN – Holds the ABN Details when running the payroll

ACRT – Holds the Year to Date values at ABN level

AETP – Holds any ETP Payments calculated Year to Date

STP Processing

The wagetypes to be used during the STP processing are stored during the payroll process. This updates the SABN, ACRT and AETP tables.

Single Touch Payroll

Source: SAP Payroll Webinar by Vikas Pandey

After the payroll process, there are a few additional steps:

  • Generate Reporting Data – This transaction (PC00_M13_STP_GEN) is used to generate the data that is used to create the transmission file to the ATO.  This will read the SABN, ACRT and AETP tables and then create both a company and Employee files containing the information summarised and ready to be transmitted to the ATO.  This report allows you to view the Employer, Employee, Allowance details and any error messages that are generated during the STP run. The following tables are updated by this process:
  1. T5Q_STP_ER – Employer Details
  2. T5Q_STP_EE – Employee Details
  3. T5Q_STP_PAY – Allowance Details
  • STP Declaration and Submission – This transaction (PC00_M13_STP_VIEW) allows you to select the run from the above step, view the details going into the STP run and create the Declaration that these values are correct.  This Declaration needs to be completed before proceeding to transmitting the data and is a required step by the ATO.
  • Transmission to the ATO – The final step is the Business to Authority transmission (Transaction PB2A).  This is where you will transmit the STP data to the Tax Authority using the SCI (SAP Cloud Integration) solution.  It not only allows for transmission, but also receives any errors back from the ATO after the file has been validated.
Single Touch Payroll

Summary

In summary, the SAP STP solution is not far away.

 With a planned release date of October 11th, now is the time for customers to start to plan for the solution’s upgrade and implementation. Whilst you do have the option to defer until the 31st of May 2019, we would not recommend waiting too long as there is still a lot of work to do.

I will follow up this blog with a further overview of the System Requirements, Configuration, some considerations when upgrading. I will also talk about SpinifexIT’s newest solution, Easy STP, and how it enhances the usability of the standard SAP STP solution.

Single Touch Payroll


#ComeSeeSpinifexIT

Are you a SpinifexIT Customer who would like to learn more about our Easy STP solution first hand? If so, I’m inviting you to join our Customer Days scheduled across October and November. You may click here to view the schedules and agenda. Customer Days are FREE events for SpinifexIT Customers. Visit the link now and register to reserve your spot if you haven’t yet.