Single Touch Payroll
From 1 July 2019, all employers will now need Single Touch Payroll (STP) software enabled. Ensure your payroll is STP compliant to avoid ATO penalties.
What is Single Touch Payroll?
Single Touch Payroll (STP) is the new reporting framework, which came into effect 1 July 2018. The purpose and aim of the new legislation is to protect employee entitlements and provide a level playing field for all businesses to minimise non-compliance.
STP enables employers to automatically and electronically provide payroll and superannuation information to the Australian Taxation Office in real time (i.e. at the time the employee is paid).
The reporting covers payments to employees such as salary and wages, PAYG Withholding and superannuation contributions.
Does STP affect all employees?
Yes. Initially the law became effective from 1 July 2018 for substantial employers (employ 20 or more employees). From 1 July 2019, the new law will require small employers (19 employees or less) to also implement STP enabled software.
Penalties may be imposed on employers who do not receive an approved extension from the ATO and who remain non-compliant after 1 July 2019.
How can we help?
Ensure your payroll is STP compliant or move to a payroll provider that will be STP compliant by 1 July 2019. We can help by:
- Managing the setup, migration and implementation to STP enabled payroll software
- Consulting on best practise methods for STP that will reduce your compliance costs and streamline the payroll function
- Provide advice on specific STP requirements
- Assist with a deferral application to the ATO.
|Lay Chein Loo|