Are you an employer with 20 or more employees?
From 1 July 2018, Single Touch Payroll (STP) will be mandatory for you. This means that you will be required to report payments made to your employees to the Australian Taxation Office (ATO) in real time. Practically this means that every time you pay your employees, be it weekly, fortnightly or monthly, you will be required to send this information to the ATO.
This includes payments of;
Salary & Wages
Deductions & other payments
Employees will be able to access this data in real time by logging into their MyGov account.
If you are an employer with less than 20 employees don’t get too excited at not being included in the new STP framework. Subject to passing through parliament, STP is due to roll out for all employers from 1 July 2019
What do i need to get ready for STP?
Firstly work out if STP will apply to you. Count your employees. The ATO has issued some guidelines in relation to getting ready and have named the 1st of April 2018 as the STP “Census Date”. You can count your employees after this date but you need to count the employees who were on your payroll as at April 2018.
Connect with your payroll software provider to find out if they will be ready to offer STP
reporting from the mandatory start date. Keep in touch with them in order to access any
guidelines, checklists or training to assist in your transition to STP. Find out how they will
offer STP – is it an update to your current system or an additional service. If your payroll
software provider will not be ready, find out if they have applied for a deferred start date.
Get in touch with the ATO. Subscribe to any updates. You can follow the ATO on Facebook,
Twitter and LinkedIn.
Review you business processes. Do your staff (in particular payroll staff) know about STP?
Are you paying your employees correctly? Are you calculating superannuation correctly? Is
your employee information up to date – including names, addresses and date of birth
If your payroll is completed by an accountant or bookkeeper, check with them to make sure
that they will be ready to get your business started on STP by the mandatory start date.
Find out if they understand what the new requirements will be and if they will be able to
assist your business in complying with STP.
Need some help? If you don’t have a cloud based payroll
solution, you will not be able to be compliant with STP. As
Xero certified professionals, we can assist you in making
sure you are STP ready – even if its just a check on your
system set up to make sure it complies with the new
framework. We are also experienced in a range of other
payroll software providers including MYOB, and KeyPay.
Some Useful Links –
- Posted by Deborah Jensen
- On April 11, 2018
- 0 Comments