Single Touch Payroll (STP) is now a requirement for all businesses and here are some things you need to know:
– New STP legislation has passed meaning that businesses with 19 employees or less will be required to submit payroll data to the ATO from 1 July 2019.
– All businesses have to submit payroll data digitally to the ATO including PAYG withholding tax, payments such as wages and allowances, superannuation.
– Businesses will need to submit data to the ATO via STP ready payroll /accounting software or through a third party payroll service.
– The way that you pay employees will not change, however, the data will be submitted to the ATO at the same time you pay your employees.
– Employees will no longer receive PAYG Payment Summaries as this data will have already been submitted to the ATO with each payrun.
– “Micro Employers” with 1 to 4 employees – the ATO is working with software providers to develop low cost solutions, in addition to other concessions that may be available.
– Exemptions may also be available if a business does not have or has unreliable internet access.
If you prepare your employees’ payruns manually (ie. on paper or using Excel spreadsheets), we recommend that you source a solution that will comply with the new reporting requirements.
Please contact us to find out how we can help you make the smooth transition to Single Touch Payroll.
Point to note: STP legislation is already in force for businesses with 20 or more employees.
Please note that this information is not specific and is general in nature and cannot be relied on as advice. Please contact us for advice specific to you and your circumstances.