Single Touch Payroll (STP) is currently being rolled out across Australia by the ATO and requires employers to report salaries and wages, PAYG withholding and superannuation directly to the ATO each time they pay their employees.
From 1 July 2018 STP is mandatory for employers with 20 or more employees and will become mandatory for employers with 19 or less employees from 1 July 2019.
Although the deadline date of 1 July 2018 has already passed, the ATO has issued deferrals to most software providers, e.g. Xero has an automatic deferral until 31 December 2018. If you have not yet registered for STP, it would be best to contact your provider to discuss their deferral program.
How do I prepare for the Single Touch Payroll registration?
If you are currently reporting to the ATO through paper and do not currently have a Single Touch Payroll compliant payroll solution, you will need to register as soon as possible to avoid penalties relating to non-lodgement.
If you are already with a payroll software provider, you will need to ensure the following items are correct and up to date before registering for STP:
• Ensure your organisation details such as your ABN, addresses, phone numbers etc. are all up to date.
• Ensure all employee details such as tax file numbers, date of birth, addresses etc. are all correct and up to date.
• Check that you are paying your employee’s correctly and that their super entitlements are calculated correctly. If they are under an award it would be best to review the up to date information under their award and correct where necessary.
• Ensure all payroll staff are aware of this change.
• Prepare a headcount and confirm you have over 20 employees as at 1 April 2018.
How will Single Touch Payroll impact my business and reporting?
Your payroll cycle will remain the same and your super will still be reported and paid through your SuperStream provider. However, you will be reporting your super directly to the ATO each time you run payroll through your payroll provider rather than on a monthly or quarterly basis. This allows the ATO more visibility of an employer’s super obligations and payments.
Once you have reported your weekly wages and PAYG through Single Touch Payroll, the ATO will be able to automatically pre-fill these amounts into your monthly or quarterly Business Activity Statements at W1 and W2. Click here to read about the penalties involved in late BAS reporting.
At the end of the financial year, you will not be required to issue payment summaries to your employees for the payments you report and finalise to the ATO through Single Touch Payroll. This will instead be made available directly to the employees online through myGov.
How can I find out more information?
Get in touch with us or give our office a call on 07 5528 2000 to discuss registration in more detail. At Quill, we are passionate advocates for all of our clients and our team is focussed on providing an experience, not just great service. As the largest multi-disciplined financial services practice on the Gold Coast, we provide a high touch personalised service delivered with competence, confidence and amazing results.
Alternatively, if you would like further information on this topic, you can visit the ATO website.