It's time to get ready for Single Touch Payroll

If you are a small employer with 19 or fewer employees, you are now required to start reporting through STP (Single Touch Payroll) from 1 July 2019. 
 
STP requires employers to report their employees’ salaries and wages, pay as you go withholding and super information to the ATO from their payroll solution each time they pay their employees.
 
This is an important change that will deliver benefits for both employers and employees by streamlining payroll processes and providing greater transparency around super entitlements.
 
The ATO understands the 1 July start date may be difficult for some small employers and is committed to providing employers with enough time to properly consider their options and make the right decision about what STP solution they use.
 
As such, small employers will have a three-month transitional period and they can start reporting any time from 1 July to 30 September. If they start reporting during this period they will be reporting on time.
 
If you are a small employer, you should talk to your accountant or tax adviser soon and ensure you are aware of all your options. There are new payroll options already available, including a number of no-cost and low-cost options for less than $10 per month, which will also become available. These options may include simple payroll solutions, portals and online apps and are suitable for micro employers (those with 1-4 employees).
 
Employers with a payroll solution already in place may be able to start reporting now by updating their software to one that is STP-ready.
 
Since STP reporting became mandatory for employers with 20 or more employees on 1 July 2018, more than 60,000 Australian employers, representing around 4.3 million Australian employees, have already been successfully reporting through STP.
 
Similar to the implementation process for larger employers, the first year of reporting will be a transition year.
 
The next steps to get ready for STP:

  • Visit www.ato.gov.au/stp and find out what you need to do to get ready.
  • If you have payroll software, speak to your provider to find out if your product is ready or when it will be.
  • If you don’t have software, choose a product that offers STP. You can ask your registered tax or BAS agent for advice on choosing a product that suits your business needs.
  • Update your payroll software when it’s ready.
  • Start reporting to the ATO through STP.

 

Comments

Search News

Recent News

The Australian Hairdressing Council news-image-5d1d807b3a51b.png

New Pay Rates Increase effective from 1st July 2019

Read More