A MESSAGE FOR ALL EMPLOYERS – ARE YOU READY FOR SINGLE TOUCH PAYROLL?
If you’re an employer, you are about to be significantly affected by a change to how the payment of wages is reported to the Australian Taxation Office. It is called Single Touch Payroll (STP).
STP means you will be required to set up reporting systems that update the ATO, in real time, when you pay wages to your employees. Other information you will need to provide includes allowances, deductions, PAYG withholding and superannuation.
If you haven’t already organised systems to deal with STP, now is the time! As stated this is a real time reporting requirement. If you pay wages weekly, you need to report to the ATO weekly!!
When does STP start?
From 1 July this year, STP will be mandatory for any business employing more than 20 employees.
For every other employer, STP starts on 1 July 2019.
Who qualifies as an employee under STP?
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Full and part-time employees, even if they are absent or on leave.
Who does not qualify as an employee under STP?
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Anyone who stopped working for you before 1 April.
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Independent contractors.
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Staff provided by a third-party labour hire company.
What software should you get?
At Bongiorno, we recommend using an accredited software package, like CloudPayroll.
CloudPayroll (https://www.cloudpayroll.com.au) is an independent, online payroll solution that can automatically manage the STP process for you. The company takes care of migration, implementation and training for you, and provide ongoing and unlimited support.
If you are already using payroll software, contact the manufacturers/providers to confirm they will be STP-enabled by the due date.
Our key message is – STP is a massive change that will affect EVERY employer in the country. You will need to prepare for the change and consider all of the options.
AND IF THIS ISNT ENOUGH ….
On the 28 February, the ATO made changes to the Small Business Superannuation Clearing House, which monitors the payment of superannuation contributions for employers. The old access to the SBSCH was turned off and now employers are required to register via Business Portal
Please contact us if you need assistance.