01 Jul Is Your Business Ready For Single Touch Payroll?
Is Your Business Ready For Single Touch Payroll?
Are you ready for Single Touch Payroll?
For employers with 19 or fewer employees, single touch payroll (STP) legislation comes into effect today. Are you ready? What is Single Touch Payroll and what do the changes mean for your business and who does it affect? What will you need to do to prepare, so that you will be compliant?
What is Single Touch Payroll?
For employers with 20 or more employees, you will already be familiar with STP, but if you are unaware, STP is the mechanism for sending tax and super information to the ATO directly from your payroll or accounting software every time you pay your employees. The legislation was passed in February this year to extend this to employers with 19 or fewer employees.
How to get your small business ready for STP and ensure you are complying
Most popular payroll software companies will have the correct facilities ready to go, such as Xero and MYOB. If you are unsure, talk to us. There are a few things to be aware of you as you get ready to use STP reporting.
- Check your software – you may need a software update or additional step added to your process
- Ensure you have factored STP into your payroll process
- Ensure your payroll compliance is up-to-date generally, including employee benefit, wage and super entitlements and maintaining accurate records
The first year of using STP reporting is a transition year and you will have assistance from the ATO, so penalties for errors will not generally apply. If you don’t think you will be ready to do the roll out today, you can apply for a deferral through the ATO. The ATO gives a list of possible reasons for deferring, including lack of internet coverage, or if further development of software is needed.
If you haven’t started your preparation yet for Single Touch Payroll, it’s time to get on it.
If you feel like you need assistance with the new payroll compliance we are here to help you with this transition. You can call us on (07) 5561 8700.