make Vet Answers my homepage
 

Winter is coming & so is Single Touch Payroll - are you compliant?

Posted in Guest Blogger @ Jul 9th 2019 - By Nicola Jones, BAS Agent, Brilliant Bookkeeping & BAS Services
Winter Is Coming

Ok so winter is here and STP has nothing to do with Game of Thrones.

It stands for Single Touch Payroll.

Still none the wiser?

Don’t worry, you aren’t alone, but if you are one of the 700,000 small businesses in Australia with one or more employees, then you need to be. 

So what exactly is Single Touch Payroll reporting?

STP is the reporting of Employee Payroll information to the ATO on Payday. Previously, you waited until the end of financial year to calculate how much you had paid your Employees, gave them a payment summary and provided a summary of those summaries to the ATO.

As of the 1st of July, 2019, STP became a legislated requirement for ALL employers (regardless of the number of employees) and so the previous end of year reporting challenge has disappeared as data is collected throughout the year from your normal pay run activities. Now, instead of waiting until year end to give Employees payment summaries, STP requires data to be collected throughout the year with your normal pay run activities. 

ATO Commissioner Chris Jordan explains that extending STP to all Employers helps to ensure all Australians get their full superannuation entitlements, while giving greater transparency and levelling the playing field for small business. It is an important step in streamlining business reporting and keeping pace with the digital age by allowing real-time digital reporting. 

Approx 70% of you already use online software for your payroll, and many of these providers have enabled simple changes in their payroll processes to ensure STP requirements can be met at the touch of a button. Xero, award-winning accounting software for small businesses, has an easy step-by-step guide on how to turn on reporting for STP within your current payroll. MYOB & Quickbooks-Intuit have followed suit with low cost or free additions to their current software packages. Ask your Bookkeeper or Accountant to help you through the steps to make sure you turn everything on correctly. There can be some initial teething problems if all the data is not entered in the correct formats.

For the rest of you – don’t panic. ATO Commissioner Chris Jordan reassures small businesses that the ATO approach will be flexible, reasonable and pragmatic. In particular, the ATO understands there will be circumstances where more time is needed to implement STP or lodge reports. 

The ATO has worked closely with software developers to ensure a range of low or no-cost reporting solutions are now available on a variety of platforms. One such solution is Xero’s new Partner only payroll solution for $10 a month. Xero Advisor Kerry Bowden, points out that the new Xero payroll solutions are designed to help small business become STP compliant with as little change to workflow as possible. A simple ‘two clicks and a tick’ process at the end of each payrun is all it takes. Fast intuitive and easy. 

For a full run down of the software available to meet STP compliance visit www.ato.gov.au/Low-costSingle-Touch-Payroll-solutions/ or contact us for an assessment of your options, now and into the future. 

Remember, doing nothing is no longer a choice; STP is here...ready or not!  

About Nicola

Nicola Jones is the Director at Brilliant Bookkeeping and BAS services. They offer professional services that cater for all small businesses and can tailor packages to suit all needs and budgets. They don't like to see anyone unsure of what to do, so can train you to do it yourself, help you finish the hard parts or take it over completely - what ever works best for you.

Their qualified Accountant and registered BAS Agent doesn’t like to see anyone struggle with their finances - particularly in Business.

You can click here to visit their website...

 

 

Comments

There are currently no comments.

Add Your Comments

All comments will be submitted to the administrator for approval.

 
To prevent spam, please type in the code found in the red box to verify you are a real person.
 
  Required fields
 

Blog Categories

 

Recent Blog Entries

 
 
follow us on twitter