What is Single Touch Pay Roll?
Most companies already know what Single Touch Payroll (STP) is.
STP was gradually introduced in 2018 and 2019. Large employers with more than 20 employees began implementing it. This was followed by the introduction of employers under the age of 19. The STP has improved the reporting process to the Australian Tax Office by providing more payroll information more frequently. Reported information includes salaries and wages, PAYG deductions, and pension amounts.
In the early stages of STP reporting, many companies may apply for an exemption. Most of them involve small businesses and close staff. This is something that will change in the future …
What has changed?
As mentioned above, there are two major exceptions to the previous implementation of STP reports. It is designed for:
- Closely controlled people (family members of managers etc.)
- Small business owners (less than 5 employees) These employers can start preparing quarterly reports.
Important: 5 Types of ATO Audits Small Business Owners Should Know
This discount expires on June 30, 2022.
After this date, supervised employees must be included in existing STP reports. The new process provides two reporting options for closely monitored employees:
- Report the actual payment at the time of payment.
- Report the actual payments every three months when completing the Business Activity Report (BAS).
- Report a reasonable estimate every quarter after completion of BAS.
For small employers, the new rule is that employees must be registered with the STP and report their payments on each payday.
More information on specific changes can be found on the ATO website. If these principles apply to you, please contact us and we can help make the transition easier for you.
How do you prepare for STP changes?
If you have not yet processed the STP report, you must do so by June 30, 2022.
Until then, there are a few things to keep in mind when setting up Single Touch Payroll. Don’t worry, we can help with each of these stages.
View reporting data.
Make sure your information is accurate in the following areas:
- Payroll – Check if the PAYG debit account is valid.
- Pensions – Make sure your pension contributions are valid.
- Employee Master File – It is important to make sure that your payroll records comply with the ATO. Make sure employee information is up to date. (Including full name, address, fax number, and date of birth)
Rethink your business.
As you review reporting data, it can also be helpful to ensure that your business practices are accurate. Make sure your employees are paid properly. And you handle more payments or corrections correctly.
Employees will be able to view their payment information on my website after each payment. Therefore, be sure to properly report any liabilities and payments that have been delayed.
Let your employees know about these changes.
STPs are designed to increase transparency in payroll processes. And keep your employees up to date.
Talk to your employees about upcoming changes. Signing up with myGov is important for all your employees. This platform will allow them to view information about their current income. And access to public services.
How can the Numbers Pro help?
It is important to ensure that these new changes to the STP are implemented.
We are here to help you make this change. We can help you set it up. Check out the current process and be sure to help with payroll processing. And run STP reports for you.
Note: If you or someone you know needs help implementing these changes, please click on Tax Agent in Melbourne.