360Private

Wed23May2018

Single Touch Payroll is coming!

STP_Image_2.jpg

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.

 

 

 

Recent posts

  • Jobkeeper Extension

    Written by 360Private

    Published: 08 September 2020

    The Australian Government has extended the JobKeeper Payment by a further six months to March 2021. The JobKeeper payment which was originally due to run until 27 September 2020, will continue to be available to eligible businesses (including the self-employed) and not-for-profit organisations until 28 March 2021. In addition, from 03 August 2020 the relevant date of employment will move from 01 March to 01 July 2020, increasing employee eligibility for the existing scheme and the extension. Support will be targeted to businesses and not-for-profit organisations that continue to be significantly impacted by the Coronavirus. The payment rate will be reduced and a lower payment rate will be introduced for those who work fewer hours. From 28 September 2020 the payment rate for eligible employees and business participants will be reduced from $1,500 to $1,200 per fortnight and then to $1,000 per fortnight from 04 January 2021. Lower payment rates will apply for employees and business participants that worked fewer than 20 hours per week in the relevant reference period. Businesses and not-for-profits seeking to claim the JobKeeper payment will be required from 28 September 2020 to demonstrate that they have suffered a decline in turnover using actual GST turnover (rather than projected GST turnover) and will be required to reassess their eligibility with reference to their actual GST turnover in the September quarter 2020 to be eligible for the JobKeeper payment from 28 September 2020 to 03 January 2021. JobKeeper will continue to remain open to new recipients, provided they meet the eligibility requirements and the turnover tests that apply during the relevant JobKeeper payment period. JobKeeper Payment Rate From 28 September 2020 to 03 January 2021, the JobKeeper payment rates will be: $1,200 per fortnight for all eligible employees who were working in the business or not-for-profit for 20 hours or more a week on average in the four weeks of pay periods before either 01 March 2020 or 01 July 2020, and for eligible business participants who were actively engaged in the business for 20 hours or more per week on average; and $750 per fortnight for other eligible employees and business participants. From 04 January 2021 to 28 March 2021, the JobKeeper payment rates will be: $1,000 per fortnight for all eligible employees who were working in the business or not-for-profit for 20 hours or more a week on average in the four weeks of pay periods before either 01 March 2020 or 01 July 2020, and for business participants who were actively engaged in the business for 20 hours or more per week on average; and $650.00 per fortnight for other eligible employees and business participants. Resources More information on the eligibility rules for businesses and not-for-profits and their employees is at: www.ato.gov.au/General/JobKeeper-Payment/. There are additional turnover tests around eligibility that your Advisor can assist you with so please contact our team today on 8291 2111.
  • Economic Relief for Business

    Written by 360Private

    Published: 16 April 2020

    On the 8th April 2020 the Government legislated the JobKeeper Payment measures to assist businesses impacted by Coronavirus in retaining their employees. The measure has now been further clarified with Treasury issuing an Explanatory Memorandum and Frequently Asked Questions guide, both of which are provided as links below. Considering your eligibility for the JobKeeper Payment is now even more vital, as State Governments and Federal Governments are using it as the yardstick for which eligibility to other economic relief measures is assessed. For example, the recently announced Code of Conduct for commercial leases and the SA Government Emergency Cash Grants for Small Business, both rely on a business demonstrating eligibility for the JobKeeper program. The JobKeeper scheme starts on 30 March 2020 and ends on 27 September 2020. Payment periods are measured on a fortnightly basis and the wage subsidy will be received by businesses a month in arrears, with the first payment occurring in the first week of May covering the period 30 March to 26 April (two fortnights). A business that has suffered a substantial decline in turnover can be entitled to a JobKeeper payment of $1,500 per fortnight for each eligible employee. In order for an employee to be considered eligible that individual must be paid at least $1,500 per fortnight pre-tax. Self-employed individuals, or those operating through companies, trusts and partnerships may also qualify for this payment. Currently, the two key issues in relation to your business qualifying for JobKeeper payments are: Continuing to pay your employees the minimum $1,500 pre-tax per fortnight; and Considering whether you believe you will suffer the threshold decline in turnover against a comparable period in 2019. The turnover comparison periods allow for comparison against months March through September 2019, or a quarterly comparison against quarters ended 30 June 2019 or 30 September 2019. Note that a business is only required to meet the turnover requirement once to ensure eligibility to the JobKeeper Payments, meaning a later increase in turnover will not remove the ongoing eligibility. There are two parts to the decline in turnover requirement: Determining the percentage decline threshold that applies to you (30% for businesses with aggregated turnover less than $1 billion, 15% for eligible ACNC registered charities and 50% for businesses with turnover exceeding $1 billion); and Determining if you will suffer that percentage decline. The ATO is responsible for administering the JobKeeper payment and assessing eligibility. The detailed application requirements are unknown for those businesses that anticipate a reduction in turnover but cannot yet demonstrate that against a comparable 2019 period. The Commissioner of Taxation does have discretion to consider alternative tests. More information will be available in the coming days as ATO systems are finalised. Below we have provided some helpful resources for you to consider. We strongly encourage you to contact our office for assistance or further information. We are available to assist with determining your eligibility and considering a strategy for your business. Resources: Enrol for the JobKeeper payment (from 20 April onwards) Explanatory Statement - JobKeeper Payment JobKeeper Payment - Frequently Asked Questions $10,000 Emergency Cash Grants for Small Business (South Australian measure) Code of Conduct - Commercial Leasing Principles during COVID-19 Please contact our office on 8291 2111 with any queries or requests for assistance. 
  • Important Land Tax Changes

    Written by 360Private

    Published: 12 March 2020

    As you may be aware there are significant changes being implemented with respect to Income Protection insurance.  From 31 March 2020, under instruction from the Australian Prudential Regulation Authority (APRA), insurance companies will no longer be able to offer Agreed Value Income Protection policies and will only issue Indemnity policies. What are Agreed Value and Indemnity Income Protection Policies ? An Agreed Value policy ensures that the sum insured is guaranteed to be paid at claim time, regardless of any reduction of income since policy commencement. When the cover is put in place, the insurer assesses your income to determine the benefit due payable at claim and this provides certainty to you regarding the benefit you may receive. An Indemnity policy requires you to provide proof of earnings at the time of claim. This involves more administration at claim time and importantly, if your income has reduced since putting in place your cover, the benefit you receive may be reduced below your insured amount. Therefore, there is a risk that you may pay premiums for an insurance benefit amount that is reduced at claim time. Our Advisors at 360Private have commonly recommended Agreed Value policies where possible for our clients to provide enhanced cover and certainty. If you are a holder of an Income Protection policy, you will need to consider taking the following course of action: If you already have an Agreed Value policy you will not lose this benefit. However, if you have had an increase in your income and your Income Protection policy does not reflect this – please contact us now! We can assist with updating your cover details to ensure you continue to benefit from this superior policy type. If you have an Indemnity Value policy, now is the time to contact us for a review to alter to an Agreed Value policy whilst it is still possible to obtain this type of policy. If you do not have any Income Protection cover, but would like to find out the benefits, you should contact our office as soon as possible to ensure we have the ability to source the superior policy type prior to it being disallowed. We are available to discuss any questions you may have about these changes, your existing cover or any new cover requirements. Please contact your Advisor, or our Risk Advice team today.
  • Land Tax Changes Passed

    Written by 360Private

    Published: 12 December 2019

    Controversial South Australian land tax changes were approved and passed by SA Parliament on 28th November 2019. The new bill won the support of both houses after further concessions ensured the backing of the Greens in the upper house. The reform package delivers $189 million in tax cuts to investors over three years, including tax relief for thousands of smaller family investors. It also slashes the top land tax rate from 3.7 per cent, the highest in the nation to 2.4 per cent. The Government hopes that this will deliver a more competitive, investment-attracting environment for the State, and would drive significant jobs and economic growth. The government first unveiled the land tax reforms in the June state budget but the initial proposals were heavily criticised by business groups and investors. Since then it has revamped the legislation several times. In the most recent changes, it agreed to include a $25 million transition fund to help small investors who might be hit by the tax changes. The Government has kept one of the most controversial features, effectively closing a loophole which allowed some large investors with multiple holdings to avoid paying any land tax. The aggregation provisions stop people using complex ownership structures in order to reduce or eliminate their tax bill. If you have any queries about Land Tax, please talk to your advisor today.
  • Property Investment Seminar

    Written by 360Private

    Published: 26 August 2019

      360Private is partnering with Ray White Marion and Brighton to present a Property Investment Seminar on Wednesday 28 August. We invite you to attend and listen to a range of industry professionals who will present the most up to date information on assisting landlords and investors manage their portfolio and also gaining insight into how you can enter the market. Please see the attached flyer with details of this complimentary seminar and ask you to book your ticket now through EventBrite via the link below, or contact Mel Charters for any assistance or queries you may have on 8291 2111. https://www.eventbrite.com.au/e/property-investment-seminar-tickets-63616002175

Financial health check

Whether it be a query about superannuation, investments, insurance, mortgage or any other financial based questions, get 360Private to check on your financial health.

Client testimonials

Very high quality professional advice

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.

Read more ...

 

.