Q: You seem to be encouraging that we use Xero Accounting software. Why is that?

A:We have worked with other accounting packages for over 20 years and now after using Xero for 3 years – I will never go back!! No more software installations, upgrading, roll overs, and back ups. It is true multiuser software wherever you are. Unlimited users, Employee portal, bank feeds, documentation can be attached to every transaction. Documents can be emailed to your own Xero account email address. The list goes on. Have a look at our webpage for more details…www.benkorp.com/Xero

Q: Can we start a new accounting system half way during the financial year?

A: Yes. There are a few options for this:

1. Part of the year in the old accounting system and the remainder in the new system. The year to date balances are brought forward. This is a small nuisance for your accountant at year end, but time goes quickly and this is quickly forgotten. Always look forward. Don’t spent time looking backwards!!
2. Migration of data. In many cases the data and transactions from the beginning of the year, and sometimes the year before, can be migrated from the old accounting system to the new. Please ask us if this is possible.
3. Start the new system from the beginning of the year. If there have not been too many transactions, and you are using a system like Xero, we can help you import and quickly enter transactions from the beginning of the year.
4. Previous Monthly comparative balances. This is also sometimes possible to establish at set up time. Please ask.

Q: What sort of training does Benkorp provide?

A: Benkorp provides customised training for you and your team. We focus on your priorities, your questions and issues. No need to waste your time learning unnecessary functions. We are trained and bring decades of experience working with accounting systems and different organisations. The two main types of training we provide are:

• How to use an accounting system for your organisation – includes lots of bookkeeping and accounting tips
• Financial Management Training for your board, directors, parish council. This may include how to read financial statements, developing policies and procedures, developing budgets,

Q: Where does Benkorp provide training?

A:There are a few options for this:

• Onsite – at your place – we can provide onsite training at your location for up to 5 people for a minimum of three (3)hours. Travel charges apply beyond 20kms from Glebe, NSW. For the most comfort, we use your computer, in your environment using your transactions to work from.
• Online – we use the industry standard GotoMeeting for online training for up to 5 people. Minimum of 30 minutes. Each person will need access to a computer. People being trained can be in different locations. The session can be interactive, providing each person is in a quiet environment.
• Onsite – at our place – we can provide onsite training at our home office location for up to 3 people for a minimum of three (3) hours. We can provide a computer or you bring yours.  We use your transactions to work from.

Q: Does Benkorp provide ongoing onsite Bookkeeping & Accounting service at our office?

A: Benkorp can sometimes provide some once off accounting services onsite, however all our ongoing Bookkeeping & Accounting services are provided online. We have developed great processes for our clients to send us work to be processed and shared. Read More

Q. Who is authorised to sign the IAS/BAS Activity Statement?   (Sydney Anglican Diocese)

Technically the signing of the BAS is stating the following:
“I, (name of business client) authorise (name of agent) to give the (specify the period) activity statement to the Commissioner of Taxation for (entity name).
I declare that the information provided for the preparation of this activity statement is true and correct.
I am authorised to make this declaration.
[Insert for emailed declaration] Type full name and date
[Insert for paper declaration] Signed: Date:”
Please see this ATO link for more details if you want: https://www.ato.gov.au/tax-professionaluts/prepare-and-lodge/managing-your-lodgment-program/client-declarations-and-lodgment-online/

Therefore the main issues are:

1. Authorised Person
The BAS Circular on the diocese website states: “Your BAS may be signed by the treasurer, a churchwarden or any parish councillor” http://www.sds.asn.au/site/103081.asp?ph=cpThe Appointment Duties & Responsibilities webpage states: “Although the wardens are responsible for various functions, they can arrange for other persons to perform some of these functions on their behalf. In particular, if one of the wardens is not prepared to act as treasurer, they may appoint another person to act as treasurer with the approval of the minister. The wardens’ ability to delegate the performance of some of their responsibilities to others is important, particularly in larger churches.” see http://www.sds.asn.au/Site/103125.asp?ph=cpTherefore another person can be delegated, and would generally be a trained person where they are not an “officer” (warden or parish councillor). We would recommend that this decision be documented.
2. True & Correct
The statement that the activity report should be True and Correct – usually refers to taking reasonable and responsible steps to ensure that it is accurate.
The reasonable steps are:
i. Implemented an ATO and Sydney Diocese recommended and accurate Accounting System
Xero Accounting Software that accurately and reliably:
– calculates the GST & PAYG
– Calculates PAYG
– Calculates and reports the BAS
– includes default tax codes which increases the accuracy and consistency
– enables individual transactions to be edited to ensure the correct tax code for a particular transaction.

ii. Contracted a bookkeeping company that is suitably qualified and experienced to perform the payroll transactions, produce reports & lodge reports with the ATO.
Performing the following actions on a regular basis to ensure reasonable accuracy of the accounts:
– Ensures that all bank accounts reconcile to the bank statements
– Reconciles the Wages Payable account – ie net wages paid = the net wages processed through the payroll system
– 2 x Annual Payroll Reconciliations – ie Payroll Reports = General Ledger + Total of IAS/BASs reported to the the ATO during the year.
The auditors also require and check this
– Monthly reviews the Balance Sheet & Profit & Loss reports against budget for obvious errors
– Quarterly reviews the GST Transactions for obvious errors
– Provides support & training.
– Performs annual GST recalculations and also compares to the totals reported to the ATO during the year – to take up any adjustments made after BAS has been submitted
– Performs superannuation reconciliations quarterly
– Performs other Balance Sheet reconciliations at least annually
– All Balance Sheet and Payroll reconciliations are also checked by the Auditor

iii. Contracted an accounting firm that is suitably qualified and experienced to perform an annual audit of the church accounts
You understand that, whilst the audit is not exhaustive, the audit will review processes, reconciliations, larger variances and transactions. This will check that the control processes are sufficient. By this, we would expect that the auditors do not find anything that would lead them to question that the accounts do not represent a true and fair view of the church’s finances.

iv. Monthly Reports
Monthly reports are conducted
– the Profit & Loss Report is reviewed monthly. Variances to budget are investigated
– the Balance Sheet is reviewed monthly

Therefore, given the above, we would say that the IAS/BAS should be:

Signed by one of the treasurer, a churchwarden or any parish councillor. This can be delegated if the person being delegated has some training and accepts the task.

True & Correct
Given the above, we believe  reasonable steps have been taken to ensure that the reports submitted to the the ATO are accurate. One simple additional step that an authoriser could perform is to compare the PAYG & GST being authorised to the previous PAYG & GST as paid to the ATO.

Q. Why does the BAS/IAS Activity Statements need esigning?
The ATO requires us to get approval for each and every BAS before lodgement.
To do this we are using an Adobe E-Signature program that is approved by the ATO
We will send you an email to E-sign the document. This includes the instructions that are easy to follow.  eSign Instructions

To approve

1. Review Documents from the email
2. Login into the Xero Portal.
   If an existing Xero user log in using your existing email address and password
   If you are not a Xero user, you’ll need to provide some details and create an account.  At the top click out of demo into the name of the entity you require.
3. Review the cover letter, declaration and form details, then click Start.
4. Follow the instructions provided in the form.

To decline a request to e-sign

1. From the return, Click Options, then select I will not e-sign.
2. Enter the reason for declining.
3. Click decline.

Q. What is the procedure to pay Itinerant Preachers?

Generally if the payment is made to the individual these people should be treated as employees (which requires the person to provide their TFN and the parish to withhold tax, produce an annual payment summary and include this payment in its annual reporting). Certainly if the person is an ordained minister then the presumption must be that the payment (even if it was called an honorarium) is in connection with the individual’s income-producing activities. That view would be reinforced if the individual’s circumstances showed they were an itinerant preacher, ie they regularly preach at different churches.

There are 3 circumstances where this may not apply –

If the recipient provides such services for not more than 2 days in a quarter there is no requirement to withhold tax (but the parish would still need to prepare an annual payment summary).

If the recipient’s circumstances demonstrated they provided voluntary services that were unrelated to their income producing activities. This may be the case if they were a lay person, had another source of income related to their professional training/skills, and the preaching was a very occasional activity.

If the payment was made to an organisation (such as the parish to which the person was licensed) rather than to the individual.

Q. How do I work out if a worker is a contractor or an employee for tax and super purposes?

A Contractor

• must be engaged and paid to produce a result
• quotes for a job for the service provided
• decides what hours to work and what expertise is needed
• must provide their own tolls and equipment
• is responsible for their own work and must fix erros
• has their own insurance cover (Public Liability,, Income Protection, Professional Indemnity)
• uses a business name and ABN
• has a business premises
• advertises to the public at large (“word of mount” is not enough)
• has a range of clients and provides services to the general public
• is free to accept or refuse work
• is in a position to make a profit or suffer a loss
• is free to delegate work to other entities.

Q. How do we pay people for their services?

Correct categorisation & documentation is required when making payments to people for their services.

Since the implementation of the new tax system in 2000 the following applies when an organisation is paying people.

A supplier of personal services is either:

1. An employee,
2. A supplier, or
3. A person not carrying out a enterprise – it is is made as part of a private recreational pursuit or hobby
4. A Volunteer

The correct procedure/documentation for these must be followed as below:

1. An Employee:

• a Tax File declaration form is required to be completed and submitted to the ATO
• Employee must be paid under the Fair Work Commission– Read More  

2. A Supplier

• Must have an ABN.
• They may or may not be registered for GST

Must supply a valid Tax Invoice – Read More

3. A Person not carrying out an enterprise
If payment is made to a person who is not an employee or does not have a registered ABN,  this form is required to be completed and kept with any other supporting documentation. If this form is not completed, then the paying organisation is obliged to withhold 48.5% of the amount and submit to the ATO in the next BAS

4. A Volunteer
    Volunteer paid in cash as a honorarium, reimbursement or allowances – Read More

Q.  What is My Payroll?

My Payroll (is the employee portal) where you can view your payroll details and payslips, enter timesheets, request leave, print a payment summary, and change your employment details for the organisation.

To View, Save and Print a Payslip

1. Go to Payroll, then click My Payroll.
2. Click the Payslips tab.
3. Select the pay period you want.
4. Click Print to open the payslip as a PDF in another browser tab.
5. Print or save the payslip.

To Submit a timesheet

Submit a timesheet for approval so your earnings, leave and holidays calculate correctly in your pay.  If you’ve taken leave during a pay period, you’ll need to submit a leave application for those hours. Don’t include leave hours within your timesheet.

1. Go to Payroll, then click My Payroll.
2. Click the Timesheets tab.
3. Click Add Timesheet.
4. Choose a pay period from the Period list.
   If the pay period you want isn’t there, your payroll administrator or manager may have already added a draft timesheet for that period.
5. Click Continue.
6. Enter your timesheet information including the earnings rate, tracking category (if the option is there), and the hours you worked for each day.
7. If any of your hours are on a different earnings rate or tracking category, click Add another line and enter the information.
8. (Optional) If you want to save the timesheet and send it later, click Save Draft.
9. When you have completed your timesheet click Submit.
10. Click in the Selected Approvers checkbox and select one or more people to approve your timesheet. NB Select your employer. Do not select the Benkorp Staff.
11. Click Submit to send it to the approver(s).

If you have worked on a Sunday or done a split shift you will need to add these lines to your timesheet. 

If you have an RDO arrangement in your employee contract, enter the RDO hours you have worked – eg 2 per week, on a separate line on the timesheet screen. You will not be paid for these hours, but accrue them for your RDO/TIL leave requests

Your timesheet should include the applicable categories.

1. Normal earnings Rate – Award
2. Normal earnings Rate – Award – for RDO hours worked (2 hrs per week)
3. Sunday Overtime
4. Split Shift Allowance – (record same hours as lodged for that day for extra 1.91% per hour)
5. Public Holidays (if this is a normal working day for you)

Your timesheet may look like the hours are inflated due to the Split Shift Allowance but this will process properly

Except for Public Holidays, do not enter hours in the timesheet for hours not worked. Your leave hours will be added to your hours in the payrun process.

To Approving Time Sheets

Approver is to check that all the information is correct. This includes:

• The From and To dates
• The number of hours leave the employee is taking.  This may need to be manually calculated – especially if the employee is part-time or does not have enough hours of leave accrued.

Approver is to check that the staff member has:

• Go to Payroll, then click MY Payroll
• Click the Team Management
• Select a Timesheet to approve
• Check the Timesheet.  Check that the employee has:
• selected the correct pay rate
• entered both weeks
• enter the correct number of hours for each entry
• if applicable, make sure they have added
  1. RDO hours worked over 38 hours
  2. Sunday Overtime
  3. Public Holidays added (if normal work day)
  4. Split leave hours  (total of hours worked that day)

1. Go to Payroll, then click My Payroll.
2. Click the Leave tab.
3. Click New Leave Request.
4. Complete all details:
   • Type of Request – Select the leave type.
   • Description – Add short text. This isn’t included on your payslip.
   • Approver – Select one or more people to approve your request.
   • Start Date and End Date – Select the first and last days of your leave.
   • Hours – Edit the hours if needed, for example, if you are requesting a part day.
5. Click Request.
6. Click in the Selected Approvers checkbox and select one or more people to approve your leave.
   NB Select your employer.  Do not select Benkorp staff
7. Select the Approver

To Approve Leave

Approver is to check that all the information is correct. This includes:

• The From and To dates
• The number of hours leave the employee is taking.  This may need to be manually calculated – especially if the employee is part-time or does not have enough hours of leave accrued.1. Go to Payroll, then click MY Payroll
  2. Click the Team Management
  3. Select a Leave to approve
  4. Check the Leave request

   

  • Please check that the dates and what are normal working days for this staff member.
  • Calculate the hours your staff member is employed during that period.  (eg Mon, Tues, Thur x 7.6hrs)
  • Enter the hours applicable for the period.
  • Do not include public holidays in the leave requested.

5. Ensure that the correct number of hours to be taken is entered for each pay period
6. Click Approve

Here are some links to instructions for other possible issues when dealing with Timesheets & Leave requests:
Approving or Rejecting Leave Requests
Approve & Reject Leave & Timesheets

Q. Why are leave balances displayed differently in Xero in the employee’s profile, the Leave Balance report and on the payslip?

• The leave balance in the individual employee’s profile is immediately adjusted for all ‘approved’ leave requests, regardless of the leave date (past or future).
• The leave balance on online payslips reflects all ‘approved’ leave requests processed in the payruns.  So the current accrued balance to the date of the pay period.
• The leave balance report reflects all ‘completed’ leave ie; leave which has been processed through a pay run.

Q.  How do you import Bank Transactions
If you do not have direct bank feeds, they are not available for one of your accounts or you need to import transactions up to the day your direct bank feed started you will need to manually import your data.  Look at the dates of the last import and start that day.

Xero should find duplicates and not import them but helps to pick up any transactions that may have happened after your last import.

Each bank is a different in how to export the bank feeds so you can import into Xero.

      Instructions for:

• How to import bank transactions – Uniting Financial Services
• How to import bank transactions – WestPac
• How to import bank transactions – Commonwealth Trading Bank
• How to import bank transactions – StGeorge
• How to import bank transactions – NAB

Q. How do you Set up Bank Feeds

Bank feeds let you automatically import account transactions into Xero from your bank or other financial institution. Once bank feeds are up and running, you’ll no longer need to download and import bank statements to get transactions into Xero.

There are 3 types of bank feeds

• Direct feeds
• Yodlee feeds
• PayPal feeds

Banks and institutions supplying direct feeds in AUST

Setup is easy
To set up bank feeds, add your bank account in Xero.  If you can select your bank or financial institution’s name in the Find your bank search box, bank feeds are available for this bank.

Next, finish the setup

• For direct feeds, check that your account type is eligible, then complete a PDF application form.
  Some banks also let you apply through online banking.
• For Yodlee and PayPal feeds, set up and activate these feeds while you’re logged in to Xero.

Video Instructions

Q:  Where do we allocate a deposit paid for purchase of property?  

I suggest the parish should just show the deposit under Other non-current assets 1-4000.

On settlement you should reverse the deposit and take up the full cost of the new property, probably all under Land 1-31xx (at cost) as an interim arrangement. In due course the parish will then need to reverse this single ‘cost’ entry and replace it with the UCV (in 1-31xx) and the insurance replacement valuation (in 1-32xx) when this information becomes available, plus a revaluation adjustment which impacts 3-3100.”

Please also be careful about the GST:
If you are planning to rent the property for more than 75% of the GST-inclusive market value of the accommodation, then the income & expenses relating to that property are Input Taxed. This means you do not charge GST and you cannot claim the GST that you pay.
If you are planning to rent the property for less than 75% of the GST-inclusive market value of the accommodation, then the income & expenses relating to that property are GST Free. This means you do not charge GST and you can claim the GST that you pay.

See this link for more information: https://www.ato.gov.au/non-profit/your-organisation/gst/gst-concessions/#noncommercialactivities

Q.  How do we process gifts and donations and received for specified purposes, called “Restricted Funds”.

Q. How do you do a payroll reconciliation for 1st July to 30th June?

Here are the main steps to process your Payroll Year End: 

1. Make sure that all pay runs for the year have been processed & filed
2. Reconcile the Bank account used to pay the wages
3. Check that the Payroll Clearing or Wages Payable Account is zero
4. Reconcile payroll reports to general ledger – The purpose of this step is to increase the likelihood that all pays have been processed through the payroll system and the annual Income Statement will be correct. Xero Blog on STP Finalisation

Run the Payroll Employee Summary Report for the year & export into a spreadsheet

Total these. The total must equal to the totals from the Payroll Employee Summary

Run the Payment Summary Details Report as at end of June 

Compare the Gross Payments to Earnings – Deductions

$335,154.94 – $158,057.57 = $177,097.37  

– Difference is $4.37 – This is acceptable as the cents are removed from Gross Payments

5. Make any corrections via an unscheduled payrun and file

6. After checking each staff member is correct Finalise STP

Q.  What is the process in issuing annual Income Statements?
We do a payroll reconciliation for the 1st July to 30th June then finalise the STP for the current FY.

1.  How do we do a  Payroll Reconciliation for the 1st July to 30th June?  (Verify the payroll data matches the general ledger)
Check out the instructions  Xero Blog on STP Finalisation

2.  Employees accessing their Annual Income Statement 
https://www.benkorp.com/stp-for-employees-what-to-tell-your-employees-about-stp/
Employees can access their Annual Income Statement electronically via their My Gov account or their tax agent. Otherwise they need to contact the ATO for a paper copy.  The employer no longer sends the employee a copy.  

Q: Where can we find out information about Single Touch Payroll?

We have written a number of articles about Single Touch Payroll.
Our Latest News is available at https://news.benkorp.com/

Articles about getting ready for Single Touch Payroll on 1st July 2019 are

• Benkorp is getting ready for Single Touch Payroll
• Single Touch Payroll – for all
• Are you the ATO contact for STP ? – Mandatory from 1st July 2019
• Single Touch Payroll – October ’18 update

Q: How do you set up Single Touch Payroll?     

Please follow the instructions from Xero.
Setting up STP https://central.xero.com/s/article/Set-up-Single-Touch-Payroll-STP

Q: How do you File STP with the ATO?

Follow the instructions from Xero
Filing STP with the ATO: https://central.xero.com/s/article/File-your-employees-pay-and-super-with-Single-Touch-Payroll-STP

Q: How do you fix an error in the Single Touch Payroll Submission?

Please follow the Xero instructions
Fixing an Error in STP Submission: https://central.xero.com/s/article/Fix-a-filing-error-in-a-Single-Touch-Payroll-STP-submission

Q.  How do we lodge our Single Touch Payroll for only 1-4 employees

You can lodge directly irrespective of the number of employees.  The if you only have 1-4 employees and you don’t want to lodge and the agent can lodge on your behalf – this can be done quarterly at the same time as the BAS, however STP enabled software must still be used.  There are no options to lodge via the Business or the Agent portals.

Q. Will Employees get a Annual Payment Summary once Single touch payroll starts?

To access the employees annual payment summary (Income Statement) will need to either
• set up a MyGov account 
• tax agent can access via ATO to prepare tax 
• request a paper copy

Q.  After we submit process the STP Finalisation to the ATO, what report can we produce to check the total year went well and when employees want reports?

Once an organisation has opted into Single Touch Payroll (STP) it’s no longer an ATO requirement to produce employee payment summaries.  If an employee requires a copy of their payment summary, they can log into their MyGov account.  Alternatively, the can request this from the ATO directly.

Xero is considering producing a report to allow employees to view these details.  As a workaround the organisation will be able to see the previous payruns that have been filed by running the Payroll Activity Summary (which shows gross earnings) or Payment Summary reports (which shows taxable earnings).