Do you know about how Single Touch Payroll will affect your business?
Single Touch Payroll is a major reporting change that will affect all businesses in Australia from July 2019. Are you aware of how this will affect your business?
Single Touch Payroll or STP is a way of sending payroll and superannuation information to the Australia Taxation Office (ATO) each time you pay your employees.
The ATO are introducing STP for a number of reasons including:
- Reduced administrative burden for employers and employees.
That dreaded process of providing Payment Summaries to employees after 30th June each year will be a thing of the past.
Employees will also be able to complete TFN declarations and Superannuation Choice forms online, and automatically filed with the ATO.
- Real time visibility of employer compliance or non-compliance with tax and super obligations
This is the real reason for the change! The ATO will see if employers are paying their PAYG and Super Guarantee obligations when they are due. Currently the ATO replies on Employers to declare their PAYG obligations when they complete their BAS returns. And technically Employers should complete Superannuation Guarantee Charge Statements if they are late paying employee SGC contributions.
You can expect quicker action from the ATO, if you don’t meet your obligations.
Employers with over 20 employees have been reporting to the ATO via payroll or accounting software on or before they pay their employees since 1st July 2018.
STP will be mandatory for all employers from 1 July 2019. The ATO are looking at ways for very small employers (1-4 employees) to meet their obligations, without too much extra expense.
This mandatory change means all small businesses need to be aware of the requirements and be prepared to implement them on 1 July 2019.
Do you know if your payroll or accounting software will support STP?
Are you calculating your employee entitlements correctly now?
What do you need to tell your employees about the STP changes?
Do you know how to submit the required information from 1st July 2019?
These are a few of the questions you should be asking yourself to prepare for STP.
Cameo Business Consulting and Bookkeeping understand and keep up to date with the changes that are coming. We have checklists and process that will guide your business through this change.
Contact us now to discuss how your business can comply with the new requirements and stay on the right side of the ATO.
Related Tag: Bookkeeping and Payroll Gold Coast