Summary

The Internal Companies entity allows you to set up sub-companies within your main company for reporting purposes.

For example, to manage company accounts as one entity, but report taxation information based on regional sub-companies.

Regardless of how your business is divided, each Internal Company record must have the "owner" aka "Payer" recorded , else there will be problems completing tax reporting obligations.

What is a Payer?

(aka Employer)

In Australia, the ATO define a “Payer” by unique ABN and ATO branch number.

In other countries (NZ, FJ, etc) the respective tax offices define a "Payer" by unique IRD number

In PayGlobal, “Payer” is also identified in the same way using fields of the same name Internal Company record.

Important: There is no "Payer" entity table in PayGlobal.

• A single “Payer” can be connected 1 or many Internal Company records.
• A single “Internal Company” can also be connected to 1 or many Pay Periods records.
• A single “Period” can only ever be connected to one Internal Company at a time.

How does this effect reporting

When you close a pay, all the transaction tables record the Pay Sequence and the employee code. Only some transaction tables record the Pay Period code per pay sequence. None record the “Payer” per pay sequence.

To ensure PayGlobal can give you accurate historical data for any point in time, PayGlobal assumes, the Internal Company field on the Pay Period record and the ABN & ATO branch number on the Internal Company record remain unchanged once the first pay is closed and submitted to the ATO. The risk otherwise is that you end up with an incorrect headcount or incorrect YTDs for a given Payer/YTD combo. This can also be time consuming to fix.

With exception of STP, if you run a PayGlobal standard report, unless the report explicitly states so, the Internal Company Filtering feature looks at the Internal Company linked to the employee's current pay period.

Using Internal Companies

Other uses for setting up an Internal Company might be to set default values in allowances and deductions for each internal company, which override the same master allowance and deduction code values which are used by all the companies.

Payroll Rules

You can use payroll rules to generate oncosts and other payment at the internal company level.