Are you ready for Single Touch Payroll Yet?
From 1 July 2018, employers with 20 plus employees (as at the head count from 1 April) will be required to report payroll information to the ATO using software that is STP compliant. Although this is a big change for business MYOB, Xero and QBO have assured us their software will be ready for businesses to report STP if eligible.
For those businesses that have less than 20 employees reporting won’t commence until 1 July 2019.
Here are 5 Steps to help you get ready for STP
- Perform a Headcount as at 1 April of your employees that worked for you in the month of March 2018. To help you we have prepared a worksheet which you can download.
- Ensure you have STP compliant software. If you need help with upgrading your software or are requiring STP compliant software please contact us to help guide you. You will need to link all your payroll categories to the ATO STP reporting categories.
- Review all your employee payroll information is correct in your software.
- Connect your software to the ATO using your Auskey.
- Nominate the person who will be making the declaration when reporting STP
Now that you are setup for STP the following changes will apply:
- Employers will be required to report their wages & Salaries, PAYG withholding and superannuation information directly from your payroll solution with each pay run electronically to the ATO. This will include each employees YTD totals.
- Payment Summaries will no longer be issued to employees as the information will be available to them through their myGov account.
- Employees will need to create a myGov account in order to access their information via this online service
Overall, your payroll processing remains the same with the added task of reporting the information electronically directly to the ATO.
You may ask why STP?
The ATO want to have greater visibility of employers to ensure they pay their PAYGW and SGC super obligations.
For further information on STP you could visit the ATO website.