From 1 July 2018, STP became mandatory for employers with 20 or more employees.
On 13th Feb 2019, Commissioner of Taxation Chris Jordan announced that the Parliament has now passed legislation to extend Single Touch Payroll (STP) reporting to include all small employers (those with fewer than 20 employees) from 1 July 2019.
What is Single Touch Payroll?
Single Touch Payroll (STP) is a change to the way employers report their employees’ tax and superannuation information to ATO. It is an ATO compliance regulation that requires employers to send employee payroll information including salary, wages, PAYG withholding and superannuation to the ATO at the same time as their standard pay run.
Single Touch Payroll is a significant change that will require many employers to upgrade or replace their payroll system this financial year in order to meet their payroll reporting obligations.
Getting Ready for STP
From 1 July 2019, most businesses with employees must be STP (Single Touch Payroll) ready. Here are the things to get started for STP ready:
- Contact Your Payroll Software Provider:
- Find out how your payroll software provider will offer Single Touch Payroll (STP) reporting – this may be through an update to your existing software, or an additional service.
- Check if they have a deferred start date for your product.
- Find out what support they will offer to their clients to transition to STP.
- Subscribe to their communications – this may be email, newsletter or web updates.
Please note older software products, such as those purchased off-the-shelf, may not be updated to offer STP reporting
If you don’t use any software, contact your Tax Agent or BAS Agent who will assist you on choosing the right product to suit your business needs.
- Connect With ATO:
- Make sure the ATO have the right contact details for your business or organisation.
- Keep up-to-date with the ATO news or subscribe to the ATO updates.
- Apply for More Time if required:
- Employer with 20 employees or more: You should be reporting through STP, or have a deferral in place. If not, apply for one using our online form. (please note that deferral will be provided in special circumstances
- Employer with 19 employees or less: If you won’t be ready to start reporting before 30 September 2019 you will need to apply for a deferral. A new online tool will be available from April 2019.
- Review Your Business Procedure for Payroll
- Check the right people in your business know about STP – especially the person or people responsible for running your payroll.
- Ensure that you are paying correctly to employees
- Check that you are calculating your employees’ superannuation entitlement correctly
- Review overpayments made to employees if any
- Ensure accurate payroll information including names, addresses, and date of birth records
- Update or Install Current Software When Ready
- The ATO will help and support you through your first year of reporting.
- If you make a mistake – you will be able to make corrections.
- As the first year is a transition and penalties will generally not apply.
DO YOU NEED HELP WITH STP? Contact Us Today!
Thanks. So informative.
Thanks for your suggestions. One thing I’ve noticed is the fact that banks as well as financial institutions really know the spending routines of consumers as well as understand that many people max away their credit cards around the vacations. They sensibly take advantage of this particular fact and start flooding your own inbox as well as snail-mail box along with hundreds of 0 APR credit card offers right after the holiday season finishes. Knowing that if you’re like 98% of the American public, you’ll leap at the opportunity to consolidate credit debt and transfer balances to 0 annual percentage rates credit cards. dddddfj https://pancreasmedi.com – buy stomach medications https://pancreasmedi.com/