The Low Down on Single Touch Payroll
Single Touch Payroll (STP) is now a requirement for ALL businesses in Australia.
STP is a way of sending salaries, wages, PAYG withholding and super information to the ATO from your payroll or accounting software each time you pay your employees. If you use payroll software, it may need to be updated to enable STP reporting. There will be low cost options available if you do not currently have STP software. However, it might be a good time to consider online accounting software with a STP payroll solution, if you do not currently have online software. (see our exclusive offer at the end of this blog).
Benefits of STP
The key feature of STP reporting is that you’ll be sending the ATO payroll information automatically each time you run a pay. As a result, less mistakes and the elimination of group certificates and payment summaries at year end.
STP payroll will cut out mistakes that employers make when paying the superannuation guarantee for employees. This means, the ATO will be able to match up your statements with your employees’ super provider. Any discrepancies between the two statements, they’ll alert you.
When you report to the ATO through Single Touch Payroll, employees can view their year‑to‑date tax and super information through their myGov account (account optional)
What will you report
You will need a STP ready software solution to send the following payroll information to the ATO to report the following information through an STP ready software solution:
· payments to employees such as salaries and wages
· pay as you go (PAYG) withholding
· super information
Start reporting any time from 1 July to 30 September 2019. If you can’t start reporting by this time, you’ll need to apply for a later start date.
Your STP solutions
If you already use online accounting software – speak to your software provider or view their website to ensure your accounting software is STP ready.
Many of the “main software players” such as MYOB, Xero have affordable STP solutions. Choose a low-cost STP solution if you do not currently use online accounting software and have 1-4 employees. Find out more at ato.gov.au/STPsolutions.
Not currently using online accounting software? There has never been a better time to switch to online accounting software.
Exclusive Offer
Buffalo Green Business Service is offering a limited number of MYOB AccountRight packages at half the usual monthly fee. If your business is not currently using online accounting software, there has never been a better time to upgrade.
Contact us on 0406 082 208 or email us at [email protected] for more info.
