We’re been hearing about Single Touch Payroll for a few years. It’s now hear; some employers are in the STP scheme, and the rest will be required to be by 1/07/2019. Here’s what you need to know about Single Touch Payroll.
What is Single Touch Payroll?
Basically whenever you make a payment to your employees, you need to report information to the ATO. You don’t need to make any changes to your current pay cycle, but your accounting software needs to be Single Touch Payroll compliant so you can report accurately. The information you’ll be reporting includes wages and salaries, allowances, deductions, any other payments, PAYG withholding and superannuation obligations.
If you had 20 or more employees, you needed to start reporting from 1 July 2018. If you have less than 20 employees, you can choose to start reporting from 1 July 2018, and must report by 1 July 2019.
What if your software is not compliant?
You may need to choose a new payroll solution if:
- You currently don’t have one
- You currently report to the ATO on paper
- Your existing payroll solution will not offer Single Touch Payroll reporting
- You want a product that better suits your business needs
If you are considering updating or changing your software, consider what your Single Touch Payroll requirements are. Speak to us first about your options and we recommend Xero which is Single Touch Payroll compliant and provides a simple, easy way to meet your obligations each reporting period. Not to mention all the other cool stuff it does!
Learn more: Setting up Single Touch Payroll in Xero
Don’t have a BAS Agent? That’s no problem – we can help you! Check out our services here.
Next steps
- Consider your needs.
- Make sure you have Single Touch Payroll compliant software.
- Talk to us.
