Single Touch Payroll – Are you ready for the ATO’s new payroll changes?
By 1 July 2019, all businesses will be required to report their employees’ payroll information to the ATO each time they run their payroll and pay their employees.
Single Touch Payroll (STP) is a Government initiative to streamline the reporting of employee tax and superannuation information to the ATO. The initiative was first introduced to businesses with over 20 employees in July 2018.
These larger businesses now electronically send their employees’ tax and super information to the ATO each time they pay their employees, via the use of STP compatible payroll or accounting software.
Smaller Businesses must now use STP
From 1 July 2019 employers with 19 or less employees will also be required to report in this way.
You will need to report payments information (salaries and wages, PAYG withholding and Super) electronically to the ATO directly from your payroll solutions at the same time you pay your employees.
The good news is that as an employer you will no longer need to create payment summaries for your employees, as the payroll information will be reported each pay cycle.
If you are already using an ERP system, such as MYOB Exo or MYOB Advanced, the switch is relatively straightforward. Most of these systems are already STP-ready – although an upgrade may be needed.
For those not already using an STP compliant payroll system, then STP presents yet another reason to leave behind the inefficiencies of manual bookkeeping and the errors of processing your pay through spreadsheets and paper files.
What should you do now?
Start by checking that your payroll software and accounting systems are compatible with STP. In most cases an upgrade will be required, which will need to be scheduled and implemented. Keep in mind that 1 July is less than 3 months away and the End of Financial Year will be approaching at the same time!
Acacia can help
Businesses with less than 19 employees should act now to make sure they are STP compliant by July 1.
If you have any questions about STP please contact Acacia Consulting Services, we can assess your existing systems, determine what upgrades are required and implement and support the new software going forward.