Make life easier with streamlined payroll reporting

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single touch payroll

By Ben Hitchings

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Single Touch Payroll (STP) is set to transform how employers report and lodge annual PAYG payment summaries and employee payroll information with the ATO, saving everyone involved a lot of time and hassle.

With STP, your payroll system will synchronise with ATO reporting, making it more efficient, and reducing administrative duplication.

What do you need to know and do?

  1. Identify if you’re a ‘substantial employer’ (20 employees or more) by doing a headcount of employees on your payroll from 1 April 2018. You’ll find a  list of the types of employees that are included on the ATO site.
  2. If you’re a ‘Substantial employer’, make sure your payroll software is STP-enabled by 1 July 2018. It’s also worth noting that the major cloud accounting software providers such as, Quickbooks, Xero, and MYOB will be STP compliant by 1 July 2018.
  3. The ATO can grant an STP reporting exemption if:
    • You’re located in a rural area without internet connection; or
    • You’re classed as a substantial employer for a short period of time during the year –i.e. harvesting activities.
  4. The tax office can defer the STP reporting date if before 1 July 2018, if:
    • Your payroll solution won’t be ready for STP reporting by 1 July 2018;
    • You’ve entered into administration or liquidation;
    • You’ve been impacted by a natural disaster; or
    • You’re affected by a circumstance outside of your control.
  5. If you are not a ‘substantial employer’ (19 employees or less) you can choose to report through SPT from 1 July 2018, however is not compulsory until 1 July 2019 (subject to legislation passing in parliament).

Need a checklist?

The Australian Taxation Office has put together a handy checklist that we would like to share with you to help you get ready for Single Touch Payroll.

Want to know more?

If you’d like more advice on how these changes will impact your business or want help choosing a payroll solution, please contact Ben Hitchings, Business Advisory Senior Manager, 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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