As you may be aware Single Touch Payroll (STP) is expected to become a requirement for all employers, regardless of employee headcount, from 1 July 2019.
Employers with more than 20 employees have been required to comply with STP since 1 July 2018, and generally do so using electronic payroll software specifically designed to handle the reporting requirements.
What is Single Touch Payroll?
Single Touch Payroll (STP) is an 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, tax withholding and superannuation 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 and super information will already be available to employees through the MyGov system.
Australian Taxation Office Compliance
The ATO will initially take a soft-touch approach to STP compliance for smaller businesses, and have communicated that they will not force businesses to utilise a payroll or bookkeeping software. The intention is to support small businesses by assisting them to meet the requirements.
Although yet to be confirmed, micro-employers (1-4 employees) are expected to benefit from additional reporting options not available to larger employers, such as quarterly reporting via their registered tax or BAS agent initially rather than reporting each pay cycle.
Check your Software
If you have employees in your business, 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.
Our team of Advisors are able to answer any queries that you may have around the introduction of STP, and have a great deal of experience in assisting with software transitions or upgrades.
Please contact us on 8291 2111 if you would like further information regarding STP, advice on your specific obligations and requirements, or assistance with selecting and moving to appropriate software packages.