Are you ready for Single Touch Payroll? Single touch WHAT??
Do you have under 19 employees? Then you need to be ready for Single Touch Payroll when it comes into play from 1 July 2019.
Single touch what I hear you ask!!
By now you may have heard the buzz around Single Touch Payroll. It’s a pretty big deal for any business that has employees. So…what do you need to know and how does it affect you? Keep reading to find out.
What is Single Touch Payroll?
Single Touch Payroll (STP) is a new way to do your payroll reporting. The ATO has made it a legislative requirement that employers report all pay events back to the ATO. That means pay runs, including tax withheld on wages and superannuation amounts, will all be reported as they happen.
Lodging every pay event to the ATO means they’ll have up-to-date information in front of them, which makes data matching a lot easier. The ATO will be able to see if you are meeting your superannuation guarantee and PAYG withholding obligations. Put simply, the ATO will be able to crack down on business owners that aren’t doing the right thing. It will become obvious to your employees too, as they will see each pay event in their MyGov account.
Who does it affect?
If you are a micro employer (1 – 4 employees) some concessions are available for a limited time so depending on your circumstance this could mean different due dates however it does depend on what staff you have and if you are using a registered BAS agent or registered Tax agent. Just give us a yess for some more information.
When does STP start for employers with 19 and under employees?
For businesses with less than 20 employees, it comes into effect from 1 July 2019.
So when does it really come into play? Well the time to act is now. There is not long before STP comes into place and you need to make sure you are set up, you understand the obligations of lodging this information to the ATO and that you are ready to report. So you don’t have to wait until 1 July 2019 to start reporting STP. You can start earlier, but please please please for the love of god speak to your BAS agent as this could effect how your end of year payment summaries are issued in your accounting software.
What do I need to do?
The first step is to have a chat with us. As a registered BAS agent, we’re in the best position to help you with this. We have already been implementing STP solutions for clients for 12 months and have rolled it out to many clients already so come 1 July, well really, it is no big deal as we are already doing everything correctly.
Electronic payroll software is essential for STP reporting. If you’re not currently using electronic payroll software, now is the time to get started. We can help you decide on the best and most cost-effective software to suit your needs.
So what’s next?
Talk to us today, don’t leave it any longer! We can help make the Single Touch Payroll process a whole lot smoother for your business.
We understand just how difficult it can be to employ and manage staff, as well as manage payroll. You don’t need the added stress of not being STP compliant.