So what is Single Touch Payroll anyway, and do I need to comply?
Single Touch Payroll (STP) is a new way of reporting tax and super information to the ATO and it is changing the way employers report PAYG and Super to the ATO.
Today, businesses with 20 or more employees are required to report their PAYG and Super information with every pay run, and from 1 July 2019 small employers with 19 or less employees will need to report through STP too. Compliance is mandatory and you are obligated to be ready by the cutoff.
So How does Single Touch Payroll work?
“STP works by sending tax and super information from your payroll or accounting software to the ATO as you run your payroll.” — ATO
The great news is that it is not as scary as it sounds, your STP-enabled payroll software solution will take all the hard work out of the process by sending the ATO a report which includes the information they need from you, such as salaries and wages, pay as you go (PAYG) withholding and super information each time you do a pay run. All you need to do is be ready to go and that is where we come into it.
Great, so how do I prepare for Single Touch Payroll
There are a few ways to prepare, but as it depends on your situation as to the most appropriate mode of action. The easiest and most pain-free way to get set up quickly is to connect with us. We will help you choose a payroll software that is STP enabled to allow you to ensure you are compliant with the changes.
Be aware that some product providers are not updating their software and so your current software solution may quickly be out of date in terms of being able to cater to STP and ATO requirements so it’s important that you make time to check. Note also if you are a micro employer (employee under 4 staff) then you may be able to utilise alternative lodgement solutions. Chat to us to see if this applies to you.
Can you just do this for me?
Actually yes we can, if you outsource your bookkeeping and payroll to us we can take the hassle away completely and report on your behalf! If you are considering outsourcing your bookkeeping , we have some wonderful cost-effective solutions to meet your needs. Simply call us to make an appointment to get set up today.
To learn more about single touch payroll contact JSM Accounting Group on 07 3814 6512 or visit us online at www.jsmaccounting.com.au and we will help take the sting out of Single Touch Payroll for your business.
ATO Video On STP
Single Touch Payroll