We have featured Single Touch Payroll (STP) in many of our past newsletters. With only a week or so to go, we hope you are ready. For those who still don’t know what it’s all about, you might like to watch our video presentation and peruse the attachments.
Single Touch Payroll (STP) reports wages tax and super from a payroll or accounting software to the Australian Tax Office (ATO).
ATO systems will match the STP information to employer and employee records. Wages are reported at each pay to the Tax Office. Payment summaries are no longer necessary because the ATO receives the payroll information with each pay.
At year end the payroll reported is finalised with the Tax office and the payroll reported each pay period is allocated to the employees records for the year.
Single Touch Payroll is Tax Office compulsory from 1 July 2019 for most employers with under 20 employees. For Employers with over 19 employees it has been compulsory from 1 July 2018. So from 1 July 2019 it is compulsory for ALL employers.
For employers who use payroll software, most software providers are upgrading their systems to enable the change so just check with your software provider that the option will be available. You should have received information from your provider about the change.
For employers who haven’t used payroll software up till now or who are using software that does not provide an STP facility things will need to change.
There are several options available however. Please talk to us about these options. Many software providers are offering low cost monthly subscription solutions so that employers can be compliant. There is also the opportunity for employers with 1 to 4 employees to get their Tax agent to report. We will also have software available that we can supply for you, so please contact us.
The most important thing is to be informed and ready. The Tax Office is allowing a transition period but the most efficient and time saving plan is to be ready by 1 July 2019. Think about your particular circumstances as an employer and inquire about what solution will do the job and be compliant, low cost and also suit your business.
As your accountant, we are familiar with what your needs are and what options are available so contact us with your questions and we can advise what your particular solution can be.
PLEASE DON’T HESITATE TO GIVE US A CALL
This article appeared in our June 2019 newsletter. Author: Stephen Mason