Time to change the way you do payroll – says the ATO
Leave the boring to us and put your payroll on autopilot. But if you want to know more, single Touch Payroll (or STP) is now compulsory for all employers to implement. No idea what Single Touch Payroll is, or how it will affect you as a small business owner? We have you covered!
What is Single Touch Payroll?
Single Touch Payroll is an ATO initiative that requires employers to report salaries and wages, PAYG withholding and superannuation to the ATO each time they pay their employees.
Does this effect me and when will it start?
It is now mandatory for all employers in Australia to adopt a compliant payroll solution, these measures are software based and start from 1 July 2019.
What do I need to do?
Digital bookkeeping is becoming a necessary part of running a business. Instead of typically reporting employee wages/tax/super quarterly or once at the end of a financial year, employers will now be required to send information to the ATO with every pay run.
Can I get started now?
Yes you can and you might already have the software! You just need to consult your business accountant to ensure your compliant and if you need software they can help with that too.
What information is sent with STP?
The ATO collect payment, tax and super information from each payrun. Your software will do the heavy lifting. For more details on what is reported, take a look at the ATO’s page on what you need to report.
Do I still need to submit a BAS?
Yes, businesses still need to submit a BAS. The wage information will need to match the payruns recorded, so it’s vital that your accountant checks them.
Do FBT, ETP and RESC need to be reported via STP?
Yes. Employment termination payments and Reportable employer super contributions are reported when you process and file your pay runs. Fringe benefits tax is also reported.
Do I need to do payment summaries any more?
Once you commence STP, you won’t need to produce payment summaries or a payment summary annual report. Your software will confirmation what you have fully reported for the financial year and for each of your employees.
What happens if I make a mistake?
If you make a mistake in a pay run that you’ve filed with STP, you can either:
- revert the pay run to draft, make your required changes, post and file if the software let you or,
- complete an unscheduled pay run or,
- fix the mistake in time for your next pay run
Your accountant will be able to advise you further.