Do you have employees? Then you need to be ready for Single Touch Payroll!
By now you may have heard the buzz around Single Touch Payroll. It’s a pretty big deal for any business that has employees. So…what do you need to know and how does it affect you? Keep reading to find out.
What is Single Touch Payroll?
Single Touch Payroll (STP) is a new way to do your payroll reporting. The ATO has made it a legislative requirement that employers report all pay events. That means pay runs, including tax withheld on wages and superannuation amounts, will all be reported as they happen.
Lodging every pay event to the ATO means they’ll have up-to-date information in front of them, which makes data matching a lot easier. The ATO will be able to see if you are meeting your superannuation guarantee and PAYG withholding obligations. Put simply, the ATO will be able to crack down on business owners that aren’t doing the right thing.
Who does it affect?
STP affects every business with employees. If you employ staff and haven’t already set up STP with your payroll system, you need to now. We’ve created a simple flow chart, with built-in links to assist with determining your options for STP.
If you are a micro employer (1 – 4 employees) some concessions are available for a limited time, contact us for more information.
When does STP start?
For businesses with less than 20 employees, it comes into effect from 1 July 2019.
For those with 20 or more, reporting started from 1 July 2018.
The time to act is now. There’s not long before STP comes into place and you need to make sure you’re set up and ready to report, and you don’t have to wait until 1 July 2019 to start reporting STP.
What do I need to do?
Electronic payroll software is essential for STP reporting. If you’re not currently using electronic payroll software, now is the time to get started. We can help you decide on the best and most cost-effective software to suit your needs.
So what’s next?
We understand just how difficult it can be to employ and manage staff, as well as manage payroll. You don’t need the added stress of not being STP compliant.