If you are an employer who has more than 20 employees; then this tip is for you.
Single Touch Payroll (STP) has been introduced in the Australian Tax system to combat areas of taxpayer non-compliance – specifically PAYG Withholding and Superannuation Guarantee payments. STP is due to commence from 1 July 2018. Employers with 20 or more employees will have to run their payroll and pay their employees through accounting and payroll software that is “STP” ready. Now is a good time to review your accounting software applications such as Xero, MYOB etc.
If you are currently using a manual system to pay your staff, you will need to change soon.
The streamlined STP reporting system will report payments such as salaries and wages, allowances, deductions, PAYG withholding and superannuation directly to the ATO at the same time the employer pays their employees (ie align ATO reporting obligations to payroll processes).
This information will be prefilled into BAS Statements and remove the need for employers to provide payment summaries to individuals and payment summary annual reports to the ATO.
Please note that you will still need to lodge and report your BAS on a quarterly or monthly basis as usual.
Employers who have under 20 employees may voluntarily commence using STP from the start date.
Currently, legislation is going through Parliament which will mean everyone needs to use STP from 1 July 2019.
If you wish to know more about your reporting requirements, please call your advisors at Brentnalls NSW on (02) 8252 5555.