Are you ready for Single Touch Payroll?
Wed May 1,2019
The Australian government passed legislation on 12 February 2019 requiring small employers to be Single Touch Payroll (STP) compliant by 1 July 2019.
Single Touch Payroll (STP) is the new reporting framework under which employers will automatically and electronically provide payroll and superannuation information to the Australian Taxation Office at the time it is created (i.e. at the time the employee is paid).
The reporting covers payments to employees such as salary and wages, PAYG Withholding and superannuation contributions.
The new law means you will report to the ATO in real time.
The purpose and aim of the new legislation is to protect employee entitlements and provide a level playing field for all businesses to minimise non-compliance.
The new law became effective from 1 July 2018 for substantial employers (employ 20 or more employees). The Government passed legislation on 12 February 2019 requiring small employers (19 employees or less) to be STP compliant by 1 July 2019.
Penalties may be imposed on employers who do not receive an approved extension from the ATO and who remain non-compliant after 1 July 2019.
What employers should do
Employers should ensure your payroll is STP compliant or move to a payroll provider that will be STP compliant by 1 July 2019. By 1 July 2019, STP enabled software will need to be in operation.
ShineWing Australia can support you to:
- Manage the setup, migration and implementation to Single Touch Payroll (STP) enabled payroll software.
- Consult on best practise methods for STP that will reduce your compliance costs and streamline the payroll function.
- Provide advice as to specific STP requirements.
- Assist with a deferral application to the ATO
The material contained in this publication is in the nature of general comment and information only and is not advice. The material should not be relied upon. ShineWing Australia, and related entity, or any of its offices, employees or representatives, will not be liable for any loss or damage arising out of or in connection with the material contained in the publication.