Single Touch Payroll (STP) is currently only required for employers who have twenty or more staff, however from 1 July 2019 it will apply to all Australian employers – even those with only one staff member. This will be a gradual process and there are flexible options available.
So, what is STP?
STP is a reporting system that sends tax and super information from your payroll or accounting software to the ATO every time you pay an employee, effectively reporting year to date information to the ATO in real time. Employees will have access to this information as the reports flow in, as opposed to only being able to access this information at the end of the financial year.
STP is available through most businesses’ current payroll, accounting and business management software which should make it easier to implement the changes come July 1st. For some employers, this change may require a simple set-up in their existing accounting system. For others, it may require moving away from, or altering, legacy accounting methods to enable the Single Touch Payroll feature to work.
If you are not sure on what is required there are experts who can assist in reviewing your payroll software to ensure there are no errors and set up a compliant payroll system if required.
STP is not compulsory for smaller businesses until 1 July 2019 and although this seems like it is a while away it will creep up very quickly, so why not be prepared and implement the changes now? And do not stress about changing your payroll cycle as this can remain the same, whether it is weekly, fortnightly or monthly.
If this article has sparked any questions, please don’t hesitate to contact your Ledge Finance Executive directly or contact us here and we will be happy to put you in contact with experts who will be able to assist your business to implement this change.
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