Single Touch Payroll – Are you ready for the change?
The Australian Taxation Office (ATO) is introducing a new way of reporting which will see businesses submitting tax and super information from their payroll or accounting software when paying employees. These ATO legislation changes are important as they will come into effect from July 1 2019, and all businesses – big and small – must adhere them.
What do the STP changes mean for you, the business owner?
Your payroll software may need to be updated to enable STP (Single Touch Payroll) reporting, so make sure you check in with your Scott Partners contact to find out how this change will affect you and your business. Our specialist team will work with you to make any adjustments as seamless and efficient as possible.
All employers with 20 or more employees have been required to report under STP since 1 July 2018, and the law is now calling for small employers (19 or fewer employees) to report through STP from 1 July 2019. More than 700,000 small employers will need to implement a new solution; this may involve acquiring or updating payroll software or adopting one of the different STP reporting options, which will be available by 1 July 2019. If this is something your business will need to address, our trusted advisors will provide you with the best-fit options for your business.
Are all businesses affected by Single Touch Payroll?
The legislation will apply to all businesses – however, the Australian Tax Office has said that they will be flexible, reasonable and pragmatic with potential concessions being given to small employers. The ATO has stated that will not force any small employer to purchase payroll software if they don’t currently use it. No matter your situation, it is important that you review the changes.
Change can be hard for businesses of all sizes however the shift towards cloud payroll management can bring with it more benefits than simply meeting regulatory compliance. If you have any hesitations or are not sure what steps to take next, reach out to Scott Partners for advice. Streamlined and simple, we’ll make the STP transition as painless as possible for you and your business.