Comply with government STP regulations from 1 July 2019
Single Touch Payroll (STP) is a government initiative that will change the way you report on your payroll to the ATO.
As of 12 February 2019, this new initiative is now legislated for ALL employers, including employers with 19 or less employees. The effective start date for these employers is 1 July 2019. Employers with 20 or more employees were required to commence STP from 1 July 2018.
Under STP, businesses are required to report on salary or wages, pay as you go (PAYG) withholding and superannuation directly to the Australian Taxation Office (ATO), electronically, and at the same time as their employees are paid.
This new streamlined reporting to the ATO will make it easier for employers to meet payroll processing obligations, and employees to view their information and lodge annual tax returns.
Single Touch Payroll Software
The new regulations may require you to find a new service provider or move to online payroll software that complies with Single Touch Payroll. While that could be a pain initially, there are upsides. Automation or outsourcing will make compliance less of a time burden for your business.
- No more annual payment summary reports to be lodged to the ATO
- No more employee payment summaries required
- Employees will be able to see the information that would normally be on their payment summary by logging on to myGov.
Three key questions to understand if your business is STP ready –
- Does your payroll software support STP reporting? If you are unsure, contact us immediately and we can help you review your business accounting and payroll systems.
- When do you need to start reporting using STP? Employers with 19 or less employees from 1 July 2019, however you can opt in for it now. Employers with 20 or more employees, STP was mandatory from 1 July 2018.
- Is your payroll team aware of these new changes, and your employee data up to date and accurate? You don’t want to start using STP with inaccurate employee information – ask your employees to confirm all the personal details you hold on file for them.
MKS Group service packages to help your business become STP compliant
• Compliant STP payroll software
• Employee data migration/set-up
• Payroll Template set-up
• Auto Super payment set-up
*Optional payroll training for any package at $185+GST per attendee
Services include the set-up of the payroll system. MKS Group will not be reviewing the employer’s compliance with applicable payroll awards / EBA’s and will not provide award interpretation nor compliance.
Payroll software subscription costs start from $10 per month and is not included in the pricing above.