Single Touch Payroll - June 30 - Changes For Small Business
Published Apr 04, 2019
If you’re a small business employing less than 20 people, you’ll soon be required to report to the Australian Tax Office through single touch payroll (STP) each time you pay employees.
The Australian Government has legislated that from 1 July 2019, single touch payroll will be compulsory for:
• payments to employees such as salaries and wages
• pay as you go (PAYG) withholding
• super information
SO WHAT DOES IT MEAN?
Forsyths Accountant, and small business specialist, Andrew Freebairn, says for some employers the change in reporting may be daunting but will make things more simple in the long run.
‘Put simply, single touch payroll is another step into the digital world.
‘It’s software on your smart phone or computer that allows payroll to be seen immediately by the Australian Tax Office each time you pay employees.
‘The change will mean using software that allows single touch payroll, but this is now relatively inexpensive and pays dividends in your time,’ he says.
WHAT DO I NEED TO DO?
• If you already use payroll software - check to see if it offers Single Touch Payroll reporting by talking to your software provider or viewing their website.
• If you don't use payroll software - you can choose a single touch payroll ready solution or talk to your tax professional for advice on the best solution for your business.
• If you use a registered tax or BAS agent - you can ask them to report through a single touch payroll solution on your behalf.
• If you have 1-4 employees - you can choose a low-cost STP solution. Find out more at ato.gov.au/STPsolutions
More information can be found at ato.gov.au/Media-centre/Articles/Transition-to-Single-Touch-Payroll-for-small-employers/
Andrew Freebairn is a Principal at Forsyths and is based in Coonabarabran.