Single Touch Payroll Deadline
What Is Single Touch Payroll (STP) and Are You Ready?
From 1st July 2019, all Australian small business owners must report their payroll information. This means employers will have to adopt a compliant payroll solution, from 1st July 2019.
Single Touch Payroll affects EVERYONE who owns a business with employees, and requires action by 1st July 2019.
The ATO has introduced STP to encourage frequent salary reporting. This means you report salaries, PAYG withholding and superannuation, every time you pay your employees.
Why Is It Important To Be Compliant By The Deadline?
In a relatively simple way the ATO will be able to identify employers who do not use STP reporting.
Penalties may apply to employers not using STP by the required date. These employers may be subject to a payroll audit.
The ATO announced that from 1st July 2010, they expect that labels W1 and W2 of business activity statements for employers will be pre-filled based on information provided through STP.
What Does This Mean For You?
For some businesses, extra reporting at payroll is the only change. You can start reporting any time if you currently use payroll or accounting software that offers Single Touch Payroll.
Your employees will now be able to access all their payroll information using their MyGov account. At the end of the financial year employee and the ATO, will have the most up to date information for all payroll details.
Payment Summaries are no longer issued at the end of the financial year by employers.
Micro companies with between 1 and 4 employees will have a number of alternatives available to them.
The purpose of STP is to streamline your payroll reporting with the ATO.
One of the biggest changes to most small businesses will be ensuring they have payroll software compliant with the new STP reporting legislation.
Below are some of the changes needed to start STP reporting:
You need to report your employees’ tax and super information to the ATO on or before each pay day.
This information will be sent from your STP enabled software.
You no longer need payment summaries for the payments you report and finalise through STP.
Employees super liability information is reported for the first time through STP.
How We Can Help Your Business
Although change can be daunting when operating a business, Bishop Collins can help you in many ways:
- Is your current payroll or accounting software STP compliant? We can check this and help you set up your software and processes.
- If your current payroll or accounting software is NOT STP compliant. We can provide you with options and a solution that will suit your business and your budget, so that you are STP ready.
- Setting up your payroll software can be daunting. We can guide you through this process, setting up your first pay run, so that future pay runs will be as simple as the first.
- Are you sure if your employee details are all up to date and accurate? We can do a complete review of your business files to ensure you have all the necessary information for each employee, so the ATO has everything they need to identify your employees.
If you have a small business and you are not STP compliant, please complete the form below and we would like to offer you a COMPLEMENTARY CONSULTATION to help you find out how you can be STP ready by the 1st July deadline.
Phil has been a part of the Bishop Collins team since 2010. Upon graduating from Newcastle University in 2004, Phil went on to complete his CA in 2007 and his Master of Taxation in 2012.
Phil’s greatest strength is his ability to review existing business structures and improve a client’s position from both an income tax and asset protection perspective.