Clever Compliance | Single Touch Payroll Update

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Single touch payroll

By Cameron Tilley and Parminder Nijjhar

Parliament has now passed legislation to have Single Touch Payroll (STP) reporting extended to employers with less than 20 employees starting from 01 July 2019. If you have over 20 employees and want to know more about STP please read our article here.

The ATO advised that this transition will ensure all employees will get their entitlements and have businesses step towards streamlining business reporting and keeping up with the digital age.

What do you need to know and do?

For employers who are not currently using a commercial payroll software

Rest assured, you do not need to go out and purchase a software to report under STP. The ATO is currently working on developing simple payroll solutions, portal and mobile apps. The ATO will be listing their no-cost and low-cost Single Touch Payroll solutions soon STP Solutions. Watch this space!

For employers who are using a commercial payroll software

Cloud Accounting software providers such as Intuit, Reckon, Xero and MYOB are STP compliant. You will need to follow the steps to register for STP through your Cloud Accounting Software.

How often do I need to report?

  • Micro employers (1 to 4 employees)

For these employers – if you are with a BAS or Registered Tax agents, you can report quarterly for first two years instead of reporting each pay run.

  • Small employers (4 or more employees)

For these employers – You will need to report each pay run. However, you can start reporting anytime from 01 July to 30 September 2019. Deferral requests will be able for additional time.

What information is sent to the ATO?

Each pay run will be sent to the ATO which includes employee wage/salary information, PAYG Withholding and superannuation entitlements. This will include year-to-date amounts.

Review your business processes

  • You need to ensure that you are paying your employees and calculating their superannuation entitlements correctly.
  • Maintain the employees personal information for example name, addresses, date of birth, superannuation details, bank details etc.

The ATO has advised the following:

  • The first year reporting will not incur any penalties for missed or late reports.
  • Exemptions are available for employers experiencing hardship, or in rural areas with intermittent or no internet connection.

Want to know more?

If you want to know more about Single Touch Payroll and how these changes will impact your business, please contact Cameron Tilley our Business Advisory Director for assistance.

An Important Message

While every effort has been made to provide valuable, useful information in this publication, this firm and any related suppliers or associated companies accept no responsibility or any form of liability from reliance upon or use of its contents.  Any suggestions should be considered carefully within your own particular circumstances, as they are intended as general information only.

 

 

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