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.
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.
Single Touch Payroll affects every business with employees.
If you are a micro employer (1 – 4 employees) some concessions are available for a limited time.
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 Single Touch Payroll 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. It’s our recommendation that you get set up for STP before the end of the financial year when you’re already got so much to think about that that time!
The first step is to have a chat with us. As a registered BAS agent, we’re in the best position to help you with this.
Electronic payroll software is essential for Single Touch Payroll reporting. If you’re not currently using electronic payroll software, now is the time to get started. We recommend Xero and they have some great solutions if you’re a smaller employer. If you’re already a Xero subscriber, read our blog on getting set up.
Talk to us today, don’t leave it any longer! We can help make the Single Touch Payroll process a whole lot smoother for your business.
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 Single Touch Payroll compliant.
If you have any questions about Single Touch Payroll or the end of financial year payroll process, please contact us.
If you’d like to save yourself the stress, we can set up Single Touch Payroll in your Xero file. Book using the link below.