What is Single Touch Payroll?
Single Touch Payroll is an ATO initiative that will require ALL employers to report salaries and wages, PAYG withholding and superannuation to the ATO each time they pay their employees.
Instead of typically reporting payment once at the end of a financial year, if you’re an employer, you’ll have to send information to the ATO with every pay run.
Do I have to do it?
YES! Its a legislative change that the ATO have pushed across the board which you will be required to comply with by 30 September 2019 (extended from 1 July).
If you have one to four employees you may be able to choose a low-cost or no cost STP solution and please contact our office to discuss these options.
Don’t Get Caught Out
Its easy to believe that STP is simply a matter of turning on the reporting feature and clicking ‘File’. However, you may get caught out on numerous issues if you leave it too late.
You still need to Opt In
Even though STP is being rolled out and pushed by the ATO, businesses still have to opt in to Single Touch Payroll. This means that we will need to contact the ATO to setup the STP lodgement OR if you lodge your own BAS, then you can do this yourself.
Time to Digitise, if you haven’t already
For the a large part of the market, businesses are equipped with digital payroll software to process payroll. But for those without, ATO are forcing you to digitise your payroll with their legislative change. If you are currently using spreadsheets or desktop software that is not STP compliant, now is the time to convert to Xero. Xero has also announced a Xero Payroll Only subscription available to those with 1-4 employees. Please contact us to arrange a Xero demonstration.
Get Onboard Now
Its going to be a huge rush for a lot of small businesses coming up to the deadline which could cause some chaos. Now is the time to adopt the changes to allow yourself a few months to get into the rhythm of filing and nut out any problems that may arise.
Employ Family Members (or related parties) only?
If you only employee closely held employees (related parties), then you do not need to start reporting until 1 July 2020 and then only quarterly on your Business Activity Statements, if you employ a mix of external and closely held employees then a hybrid approach can be achieved – we can discuss this with applicable businesses.
If you have any STP questions or would like to know more about how we can help eliminate the time you spend processing your payroll