Single Touch Payroll – starts 1st July 2018
Single Touch payroll (STP) will be a reality on 1st July 2018 for employers with 20 or more staff and 1st July 2019 for employers with 19 or less staff.
Tax File Declarations, Payment Summaries and EMPDUPE will no longer be needed. Instead, businesses will be required to report their wages, PAYG and superannuation for each employee whenever an employee wage is paid. The information will be reported directly to the ATO from compatible payroll software.
MYOB and Xero have said their software will be compatible with STP by the end of this financial year. MYOB will have AccountRight Live and Essentials ready. However MYOB Classic will not have STP compatibility developed. MYOB has organised an extension for clients who are unable to move to AccountRight, because they are currently using multi-currency, negative inventory, M-Powered Payment or ODBC and those using AccountEdge. They have been granted an STP reporting deferral until 31 May 2019.
In 2018, there will be no penalties imposed for failing to report on time. This is unless the ATO has first given you written notice advising that a failure to report on time in the future may attract a penalty.
What do I need to do to get ready?
• Conduct a head count on 1 April 2018- include full time, part time, casual and seasonal staff and staff who are on leave. Exclude directors, office holders and contractors. Also exclude casual staff who didn’t work during March 2018.
• Make sure you are using the most updated version of your payroll software
• Organise training with your software consultant on how to prepare for STP
• Start reporting from the first pay run commencing 1 July 2018 if you had more than 20 staff on your head count.