Single Touch Payroll Alert
It is now only a matter of months before all employers will be required to comply with the ATO’s Single Touch Payroll (STP) provisions. Until now only employers with 20 or more employees were required to comply but from 1 July 2019, all employers will be brought into the system, so it is now time to understand your obligations and act.
So, what is Single Touch Payroll?
STP is a new way for employers to report their PAYG and super contribution information to the ATO after every pay run. Previously reporting of this information was done monthly or quarterly and super contributions were not reported as all. According to the ATO, Single Touch Payroll information will eventually be used to pre-fill your activity statement.
If you are currently already using payroll software to prepare and perform your pay runs, it is highly likely that it will be STP ready, however there are some instances where this may not be the case. If you do have STP ready software, the transition should not be difficult but the initial set up is critical. If you require assistance with this, we can help you through the process to make sure it is done right.
I only employ 4 staff, what are my options?
“I don’t currently use payroll software” I hear you say, well there will be different options available to you. The ATO have asked developers to create simple low-cost software and apps for less than $10 a month. This may suit your business but it would be worth considering your more-broader accounting and record keeping requirement rather than just your payroll in isolation. “Micro employers” (1-4 employees) will be given different options including initially allowing their registered tax agent to report quarterly on their behalf. Finally, if you have no internet connection or an unreliable connection, you may be eligible for an exemption.
If you would like to discuss your STP reporting obligations and software solutions please contact our office to arrange an appointment. It is now time to act!