What is Single Touch Payroll (STP)
This is an initiative of the current Federal government aimed at ensuring that all businesses who pay wages are accountable for their payroll liabilities eg PAYG and Super.
Information collected is only (at this stage) Year to Date figures for Wages paid and PAYG and Super
How will your Small Business do this?
- You need an Electronic Payroll system
- You need access to the Internet
- You need to register for STP
- You then need to “file” a payroll return every time you make wages. This is called a PAY EVENT.
Penalties will apply if you are late eg you pay on Friday but don’t file until Monday you may receive a penalty fine. (However the ATO has said they won’t incur fines for the first 12 months)
The plus side is you don’t need to file Payment Summaries anymore. You will have 14 days from the end of the Financial Year to Finalise your payroll and file your EOY report.
How does it effect your employees?
All employees should have a MyGov account. By logging into their MyGov account they can see their YTD figures for payroll and also super that should be paid to their super accounts. (Note MyGov is optional)
Ensure that your Payroll program, is STP compliant
Ensure you have registered for STP by the due date
Ensure you have a process in place and know who is responsible for lodging your STP returns
Double check and make sure your returns are lodged on time. Remember the ATO will hold you responsible not your office girl if the returns are not lodged on time.
Consider starting a GST/Tax Bank Account (if you don’t have one already) and transferring your PAYG and Super Liability into it every time you do a payroll.
If you are not ready to start reporting to the ATO contact them by 30 September 2019.
For Employers: https://www.ato.gov.au/Business/Single-Touch-Payroll/
For further information please you are welcome to contact SBAA Member Linda Cameron.
Written by Linda Cameron, SBAA Member and Owner of Moneypenny Bookkeeping.
Mobile: 042 965 4400