Did you know that Single Touch Payroll (STP) has become mandatory for small employers this year?
STP works by sending tax and super information from your payroll or accounting software to the Australian Tax Office (ATO) as you run your payroll.
So, who needs to start reporting through STP?
If you are an employer with 19 or less employees, you will need to start reporting your employees’ salary and wages, tax and super information through Single Touch Payroll. This is done through programs or software solutions.
If you are unsure of suitable software to use, UBT’s advisers are always here to help.
The ATO has helpfully outlined the three things for customers. Our clients, businesses operated by Brethren Community members, can follow these steps to be STP ready:
- Find a payroll solution that is STP-enabled and is right for you – the ATO has a list of STP-enabled products on its website at ato.gov.au/STPsolutions or find a service provider that can report through STP on your behalf.
- Ask your registered agent if you are eligible for a reporting concession – depending on your circumstances, you may be eligible to report quarterly if you have an intermittent or seasonal workforce, employ members of your family, or if you have 4 or fewer employees.
- Ask the ATO for more time – if you know you won’t be able to start before 30 September 2019, you or your registered agent can ask the ATO for a later start date. To apply log in to the Business Portal, select Manage employees then STP deferrals and exemptions.
But above all, don’t panic if this seems complicated and confusing. The ATO Commissioner Chris Jordan has assured small businesses that the ATO will be flexible and reasonable, with no penalties for mistakes, and missed or late payments for the first year.
You can also visit the the Australian taxation office website. It has plenty of handy resources and information that can help explain the changes and the steps you need to take.
UBT’s business advisory services are always available to make sure businesses operated by Brethren community members understand all that is required to be STP ready. Contact us today on 1300 01 01 02.