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Jump On Board: Payroll Changes Impact ALL Employers.

Legislation recently passed requires ALL EMPLOYERS, big or small, to send a report to the ATO after every pay run, starting 1 July.

No more paper ledgers or using Excel spreadsheets to print payslips. And gone will be the days of payroll advice via fax or hard copy mail.

 

What actually is Single Touch Payroll?

As of 1 July 2019, businesses with fewer than 19 employees will be required to report under single touch payroll (STP) regulations.

Essentially it means employers need to jump on the “digital bandwagon” and sign up to payroll or accounting software package that offers single touch payroll. Employers will then automatically send their tax and super information to the ATO each time they run their payroll – hence the name “single touch”.

To help ease the cost there are several software providers offering affordable solutions.

 

If you employ under 4 people speak with us about alternative options.

 

How will STP affect my business?

If not already, its advisable to set up with a cloud-based solution to manage your payroll.  This presents a major opportunity to move away from spreadsheets, written notes and paper-based systems.

In essence, it’s going to make things easier. Employers using STP software can send their tax and Super information directly to the ATO each time payroll is run. Including your employee’s salaries, wage allowances, deductions and other payments.

This also means employers will no longer be required to submit payment summaries at the end of the financial year for the payments reported and finalised through STP.

 

How does this protect employees?

There is a loophole in the current Superannuation Guarantee that allows employers to hold back on superannuation contributions to the end of the quarter, instead of paying them at same times as wages.

It means employees, can be and have been, missing out on Super payments they are entitled to.

 

How do I prepare for the STP change?

If you already use cloud-based accounting software:

Contact your software provider, if you haven’t already, to update your subscription and start reporting.

 

If you don’t already used cloud based accounting software:

Now is the time to get onboard.  The ATO has ensured smaller business owners will not be required to purchase high costing STP software if they currently do not possess it. Here is a list of no cost / low cost options.

 

Steps to get your business ready:

  1. Do a headcount:

Conduct a headcount of employees to determine the number of employees you have. If you are unsure about which employees are included the ATO has provided a detail document of employees excluded from this headcount, these include:

  • Independent contractors
  • Staff provided by a third-party labour hire
  • Company directors
  • Office holders
  1. Determine how you will report from 1 July

If you currently use payroll software, contact your provider to see how they offer STP reporting or alternatively business owners are able to purchase a payroll STP software that provides the STP reporting solution.

  1. Apply for a deferral via the ATO website if you need more time:

https://www.ato.gov.au/Business/Single-Touch-Payroll/Get-ready-for-Single-Touch-Payroll/Single-Touch-Payroll-deferrals/

 

  1. Determine how your STP report will be sent to the ATO:

The ATO requires an authorised person to declare the information to ensure the information is true and correct. Individuals will need to declare the STP data being reported each time they submit a pay run.

 

For a no obligation chat about your requirements – contact us here.

 

SIMMONS LIVINGSTONE & ASSOCIATES GENERAL ADVICE WARNING This information is of a general nature only and neither represents nor is intended to be specific advice on any particular matter. Simmons Livingstone & Associates and Infocus Securities Australia Pty Ltd strongly suggest that no person should act specifically on the basis of the information contained herein but should seek appropriate professional advice based upon their own personal circumstances.

Kris has over 16 years' experience in the business advisory, accounting and taxation industry. His initial years were spent with WHK Group and PKF before founding Simmons Livingstone & Associates in 2013.

As Managing Partner, Kris has steered the firm to success, being instrumental in expansion of the firms client base and subsequent recruitment to increase the professional team size.

He brings his extensive experience within a variety of areas of business services and compliance, and has a proven track record of success with clients from a variety of sectors. Not only is Kris a an exceptionally valuable asset to the firm, his business advice is invaluable for professional service clients, from a financial perspective.

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Kris has a young family and outside of work, when he’s not spending valuable time with the family, you’ll find him on the golf course or sampling a brew with the guys.

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Simon is a passionate business advisor, specialising in:

 

Simons personable service and attention to detail ensures his professional relationships remain strong.  As a partner at Simmons Livingstone, Simon has lead the substantial growth of the firms large corporate space.

Through his sporting connections, Simon also has a strong reputation as an industry leader for professional sports men and women, representing sporting players and companies involved in various professional sporting federations and leagues.

Simon is a former representative golfer, and still enjoys a round most weeks. An avid sports enthusiast, you’ll find him kicking back with a red wine if there’s a good game on.

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Tom has a passion for providing quality advice and exceptional service.

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Tom's extensive network of allied professional services provide the same level of outstanding consultancy, so clients can be assured that any financial problem or opportunity will be addressed with Tom's help.

Outside of work, Tom likes to be outdoors. He plays football and golf amongst other things. You will also find him enjoying good food and good beer with good friends.

Sam is our newest Partner to the Simmons Livingstone & Associates team, working with Tom in our Financial Planning division. 

Sam has a strong passion to educate and inform his clients about the importance of financial planning and getting started early. 

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Sam's greatest asset is his ability to support his clients to better financial wealth using his extensive network. 

 

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