From the 1st of July 2018, it will be a requirement for certain employers to use a new system to report their employee’s tax and super information. Single Touch Payroll (STP) is a government initiative designed to streamline business reporting obligations and improve instantaneous data available to the ATO. Effectively, the new program will mean that when you pay your staff their salaries or wages and super through your payroll software, this information will automatically be sent to the ATO.
If you are an employer who has twenty or more employees on the 1st of April 2018, you will need to be ready to use STP when it comes in to effect. While it is not compulsory for employers with less than twenty staff, it will be from 1 July 2019. Either way, you will need to ensure that your payroll system is up to date and compatible with STP. Payroll software and service providers are currently updating their products to enable this change and should inform you when your software is able to use this new reporting method. If you would like to check the status of your software, you can use the product catalogue located on the ATO website, which will be updated as STP is enabled. Once your software is updated you do not need to wait for the official effective date to start using STP.
If you require any assistance with the transition to STP or are unsure if this change affects you, please contact HQB Chartered Accountants on 02 6652 2333
– Posted 24.11.17
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