The Australian Tax Office (ATO) has introduced Single touch payroll (STP) that changes the way employers report their employees pay.
STP was introduced on 1 July 2018 for substantial employers with 20 or more employees.
However, STP is now required for employers with 19 or less employees starting from 1 July 2019.
Micro-employers (1-4 employees) have alternative options to help with the transition, such as allowing your registered tax or BAS agent to report quarterly rather than every pay run.
How it Works?
Every pay run Employers are required to send the ATO employee’s details, gross wages, PAYG tax withheld and super information via payroll or accounting software that offers STP.
The information can be sent directly from the software or through a third party, such as a service provider.
The ATO have made recommendations to software providers to build low-cost STP solutions for approximately $10 per month for micro employees.
To get ready for STP, employers need to find out if the current software is compatible with STP by talking with your service provider or us today.
Now is a good opportunity to review your current payroll software system. If you are using manual processes or out of date software, now is great time to update to a cloud-based software like Xero.
We can provide payroll solutions to your company and ensure it’s ready for STP, feel free to contact us today.