Update on Single Touch Payroll (STP) Integration
Recent developments have brought increased attention to superannuation guarantee obligations. Notably, with the implementation of single touch payroll (STP), the Australian Taxation Office (ATO) is intensifying its focus on ensuring employers fulfil their superannuation commitments.
As payroll information seamlessly flows to the ATO through the STP framework, the ATO is taking steps to enhance compliance activities. A pivotal aspect of this strategy involves cross-referencing STP data with information reported by superannuation funds through the Member Account Transaction Service.
By aligning these datasets, the ATO aims to meticulously assess whether employers are meeting their responsibilities in timely superannuation guarantee payments for their employees. It’s crucial for employers to understand that, as of now, superannuation guarantee amounts must be settled within 28 days after each quarter’s conclusion, to circumvent the superannuation guarantee charge.
Despite potential changes on the horizon, notably the proposals regarding payday superannuation, the current regulations underscore the importance of adherence to timely payment obligations.
For our clients grappling with superannuation guarantee obligations, it’s imperative to stay informed about the ATO’s heightened scrutiny in this domain.
As trusted practitioners, we are here to guide our clients in establishing robust systems and processes to ensure full and punctual fulfilment of superannuation guarantee obligations. This proactive approach is vital for averting penalties under the Superannuation Guarantee Charge (SGC) provisions.
For more information, speak with your Simmons Livingstone advisor on 1800 618 800 or via email at admin@simmonslivingstone.com.au.
