What is Single Touch Payroll?
Single Touch Payroll (STP) is a new electronic method for employers to provide payroll information to the Australian Tax Office at the same time you pay your employees. This information will include details of salaries, wages, PAYG withholding and super information.
STP provides businesses with opportunities for efficiency, particularly around the end of the financial year. Organisations reporting via STP will no longer be required to complete employee payment summaries as payroll information will already be available to employees through the MyGov system.
For employers with 20 or more employees, STP reporting starts from 1 July 2018. Employers with less than 20 employees can report voluntarily.
From 1 July 2019, STP requirements will expand to include all employers regardless of employee headcount.
There are a couple of things as a business owner you will need to do to be ready for STP:-
Check your headcount
If you had 20 employees or more on 1 April 2018 you will need to commence preparation for the STP reporting requirements from 1 July 2018.
Check your Software
Your existing payroll software may need to be upgraded for STP reporting – you will need to confirm these details with your current software provider or accountant.
For employers with 20 or more employees at 1 April 2018, there is an urgency to adopt STP suitable software as soon as possible to ensure that compliance with the reporting requirements are maintained.
If you have less than 20 employees, we recommend that you plan any required adjustment to your payroll systems by later this year.
Our team of Advisors are able to answer any queries that you may have around the introduction of STP and can assist you. Please contact us on 8291 2111.
Are you aware that the superannuation changes introduced on the 1st of July 2017 were not just about capping the amount of capital that can be transferred to retirement pension phase? They also included big changes to tax deductible and non-deductible contributions.
For the 2018 Financial Year, the concessional contribution cap is $25,000 for everyone who is eligible to make these contributions. There’s no longer a higher cap for anyone 50 or over. The tax deduction for personal contributions has also changed, but there’s a bit of a catch as personal super contributions claimed as an income tax deduction count towards the concessional contribution cap of $25,000 for the financial year 2018.
The annual non-concessional contribution cap for the 2018 Financial Year is $100,000. This has been reduced from the 2016/17 figure of $180,000. However, if the total amount you have in super on the 30th of June in the previous financial year is not less than $1.6 million, you won’t be able to make a non-concessional contribution for that financial year.
The work test still applies for those 65 and above when they make a contribution to super, but this means no personal contributions after age 75. For those aged at least 65, from the 1st of July 2018, there’s a new type of personal contribution which allows those who qualify to contribute up to $300,000 to superannuation from the sale of their family home that has been owned for at least 10 years.
If you require clarification on any of these points, please contact your 360Private Advisor.
This year one of our Directors, Greg Rundle, will be joining business and community leaders from around Australia to take part in the 2017 Vinnies CEO Sleepout, raising awareness and vital funds to support services for the thousands of men, women and children experiencing homelessness across the country.
When thinking about the risk factors in each business, the term ‘key man’ is often used. What this relates to is revenue and how the exit of 1 or more person(s) could affect the revenue of the business. It occurs when a business becomes heavily reliant on a key individual(s). Although this risk is typically found in small to medium enterprises (SME), it occurs in companies of all scales and to varying degrees.
The team from 360Private have been our taxation and superannuation advisors for the past 15 years. Throughout that time we have received very high quality professional advice to assist us progress to long term goals of financial independence.