Gearing up for Single Touch Payroll (STP)
From 1 July 2019 all employers (1 employee or more) will be required to use payroll or accounting software to send tax and super information to the ATO each payday.
While this may sound like a challenge for those of you still using paper record books, it really is a smart transition that will save heaps of time at year end. You’ll no longer need to complete employee payment summaries then because they will be reported to the ATO on paydays throughout the year.
But still, a lot of small businesses don’t use an online payroll product. We see plenty of responsible employers with less than 19 staff follow ‘old school’ methods, including Pay Slip Pads and Hours & Wages Record Books. “If it works, why fix it?” they say. Look, a shift like this was inevitable with cloud software and automated solutions taking over.
The fact is, about 40,000 employers have already adopted STP as a requirement last year for business with 20+ employees and the ATO was happy with the transition. This year however, the uptake from micro-employers (1-4 employees) might be a bit bumpy. Over 780,000 businesses (over a third of Australian business!) will be affected (SOURCE here).
But don’t fret. Over the coming weeks we will put together FAQs and share them here. While every business is different, a lot of payroll questions are the same.
How we can help you make the STP transition
We’ve been using accounting software with and for our clients for a long time. MYOB, Xero and Cashflow Manager are fairly easy to learn and yes, we offer Training and Purchase plans. (See details on our page for Support.)
So our first bit of advice is to prepare yourself now, well ahead of the 1 July deadline. Get to know the rules and requirements outlined here on this ATO STP Fact Sheet. It helps to know that:
- Your payroll cycle will not change. (continue as weekly, fortnightly or monthly)
- Your payment due date for PAYG withholding & super will not change.
- You will have the option to offer employees to fill out a number of forms online.
- You may not need to provide an employee payment summary at end of year.
Next, let us help you select a payroll solution that’s right for your business. Our software partners offer good online resources to show how they work in relation to STP, including:
While we’re still a few months away from D-day, I look forward to helping all our clients and new business enquiries get through this important business event!
Deidre Jackson, 4421 0336
