Background:
Single Touch Payroll (STP) is a new initiative from the Australian Taxation Office to encourage frequent salary reporting by employers to the ATO.
Some media commentators have said this is the biggest compliance requirement that the ATO has implemented since GST was introduced in July 2000.
The legislation, passed in February 2019, will apply to any employer with less than 20 employees. This is estimated to effect 2.3 million small businesses who employ 40% of all workers. Employers with 20 or greater employees have been required to report since 1 July 2018.
This means you will be reporting to ATO: salaries & wages, PAYG withholdings and superannuation every time you pay employees from 1 July 2019.
The reporting for each pay run needs to be done electronically to the ATO. This creates an opportunity for those who are currently recording salaries using desktop software, by way of spreadsheets or manually.
What you need to do:
If you have employees and are not sure of what to do please contact our office to discuss how this will effect you and what you need to do to get ready for this change.
If you do not have employees and have a family member, friend or colleague who should be talking to us please refer them so that we can assist them with this change.
Regards
Eric
Eric Cirulis
Director / CEO