Single Touch Payroll (STP) for small and micro employers
Technology and software advances has seen many small businesses benefit from increases in automation and efficient processes. Unfortunately, it has also enabled Government bodies to demand more reporting and compliance requirements.
What is Single Touch Payroll?
Single Touch Payroll (STP) is an electronic way to send payroll information including tax and superannuation to the ATO from the payroll/accounting software each time you pay your employees.
Legislation has recently passed both houses of Parliament requiring that Single Touch Payroll (‘STP’) reporting be extended to employers with less than 20 employees from 1 July 2019. STP reporting for employers with 20 or more employees already started from 1 July 2018.
What this means is that from 1 July 2019 all employers, irrespective of the number of people they employ, will be required to comply with STP reporting obligations. If small businesses already use software that offer STP, they can setup their software and start reporting to the ATO now to ensure that any issues are ironed out before 1 July 2019.
Micro employers (i.e. employers with one to four employees) who do not currently have payroll software with STP reporting capabilities, are expected to have access to a range of low cost solutions in the form of mobile apps and other portals.
Whilst the ATO have introduced a 1 July 2019 start date for small employers, the Commissioner has stated that these taxpayers can start STP reporting any time before 30 September 2019 – effectively getting a three month grace period.
Get in touch with us today to ensure that your small business is STP ready!