Reminder – Are You Ready for Single Touch Payroll?
Commencing 1 July 2018, if you have 20 or more employees you will need to start using Single Touch Payroll-enabled software to report tax and super information to the ATO. Single Touch Payroll (STP) is an initiative by the Federal Government with the aim of simplifying business-reporting obligations. Employers are required to conduct a headcount of staff as at 1 April 2018, and if there is 20 or more employees on this date, STP would be mandatory from 1 July 2018. For employers with 19 or less employees it is voluntary as to whether you adopt the STP solution from this date.
What does this mean
At the end of the financial year employers won’t need to complete payment summaries for their employees as the payroll information would have been reported to the ATO in real time throughout the year.
It means a raft of payments which needed to be done manually can now be reported automatically
STP will become mandatory firstly for all employers with 20 or more employees
Employers with fewer than 20 employees will also have the option to adopt STP if they so choose
What you need to do
Speak with your payroll software provider to find out when your Single Touch Payroll-enabled software will be ready
Review your current payroll processes to see if they need to be updated
Start developing an implementation plan
For further information on STP please click here.