Have you heard of Single Touch Payroll? We are less than two months out from the deadline on single touch payroll (STP) for micro businesses!
A YouGov Galaxy survey of 517 business owners required to comply with the new regulation has found 70% have "no idea what's ahead of them" and more than half (55%) have "little knowledge" about how to become compliant.
WHAT IS SINGLE TOUCH PAYROLL?
Single Touch Payroll (STP) is an ATO initiative and indeed a requirement that will overhaul the way tax and super reporting is managed across Australia.
It means that employers will send tax and superannuation information to the ATO directly from their payroll or accounting software each time they run a payroll.
So whether a business runs payroll weekly, fortnightly or monthly, the STP enabled software will send the ATO a report.
STP was introduced on July 1st 2018 for employers with 20 or more employees. On July 1st, 2019, it will also be mandatory for small businesses with 19 or fewer employees.
HOW WILL STP AFFECT MY BUSINESS?
How are you currently processing payroll?
If you are using an excel spreadsheet or another manual system to process your payroll, it will be almost impossible for you to report your employees' payroll information to the ATO after each payroll. You will need to find a provider that can offer STP.
The good news is that STP reporting will streamline your reporting process by being able to submit payroll information upon completion.
The ATO will also be able to pre-fill the Business Activity Statement (BAS) for employers, meaning no risk of errors and no need to double check the data at the end of the financial year.
Another benefit is that employers won't have to generate payment summaries for employees at the end of the year. Employees will be able to see their year to date tax and superannuation via myGov.
DO YOU NEED HELP TO GET READY FOR JULY 1st 2019?
At Numeric Eight, we offer a number of services to cater for the needs of small business owners, including payroll processing. We can advise you on the right accounting software for your business and help you get your payroll systems ready for STP.
Call us today for an obligation free consultation on 02 9437 1785 or email us here.