Single Touch Payroll (STP) is here and it is a new way of reporting tax and superannuation information.
STP came into effect for companies that employ 20 plus on 1st July 2018. All other businesses (excluding the following) came into effect on 1st July 2019 with a deadline of 30 September 2019 to register.
How STP works is that employers will provide payroll and superannuation information to the ATO at the time the payroll is created.
Take this time to ensure you have captured all the required information for your employees such as – correct legal name – tax file number – address – date of birth – superannuation spin number and their superannuation member number.
Ensure you have your payroll process in place, if you have lots of employees who work on a roster system ensure the payroll is run on a consistent basis.
Ensure your staff know that they will no longer receive a Payment Summary (the old Group Certificate). Every employee needs to create a myGov account and their payment summary will be available within that system and also the amounts that have (and should have) been paid in superannuation.
– Micro employers are those who have between 1 – 4 employees. If you need more time to move to a real-time pay day reporting, you can choose to report through your registered tax or BAS agent on a quarterly basis until 30 June 2021. (Agent must apply for the concession on your behalf by 30 September 2019)
– Closely held payees, this means payments for family members of a family business, directors or shareholders of a company or beneficiaries of a trust. You have until 1 July 2020.
If you are unsure how this will work or need assistance with your STP or payroll and HR compliance please contact us, this really can be a small investment for a long term gain.