It is time for businesses to get ready for Single Touch Payroll (STP), a new legislation being introduced on 1 July 2018. The new legislation changes the way the Australian government requires businesses to report payroll information to the Australian Taxation Office (ATO), as part of the government’s digital-first initiative.
STP requires employers to share payroll information directly with the government in a digital format, at the same time they pay employees. This information includes salaries, wages, deductions, Pay As You Go (PAYG) withholding and superannuation details.
Currently, STP is optional for those that have fewer than 20 employees, until 1 July 2019, when all firms will need to comply with the legislation. Therefore, it is critical for businesses to begin preparing for STP, regardless of size, and start putting the right technology, processes and practices in place to reduce the risk of non-compliance.
To help payroll get a head start on the new payroll and reporting schedule, Brad Stockman, senior product analyst at Ascender, has developed some helpful tips.
In this guide, you will receive:
It is not long before businesses have to comply with STP. This new legislation is going to require a significant change to the payroll and reporting schedule. It is anticipated that it will take businesses at least a year to get used to the new process. However, once all the challenges have been overcome and operations are running smoothly, it should provide a much more efficient way to report to the ATO.
Businesses can get a head start if they start preparing for the changes now. Even if STP does not apply to your business until 2019, it is best to start planning now to become compliant.