Single Touch Payroll (STP) is almost upon us.
This is mandatory from 1st July 2018 for employers with 20 or more employees.
by 1st July 2019 for employers with less than 20 employees.
On the 1st April 2018 every business is required to do a head count to determine the number of staff on their books, ready to start reporting from 1st July 2018. This includes Directors of companies on payroll. This number is just to be noted down somewhere, it doesn't need to be reported to the ATO.
So, on the 1st April if you have 20 employees you are in for 1 July 2018, and if you have less than 20 you are out and only have to start 1 July 2019.
There is no avoiding this legislation. All employers will be required to be set up on software programmes for Payroll that integrate with the ATO. Quickbooks Online, XERO and MYOB AccountRight and Essentials will do this.
So what does STP mean? Well, it is a reporting method directly to the ATO populating employees PAYG and other tax information at the end of each and every Payroll activity.
Then at the end of the Financial Year employees Tax returns will already be populated with the information and eventually Payment Summaries will be phased out, or so we are told.
If you know of any small business owners who you think may need to know of this legislation, please feel free to forward this email to them.