If you are an employer and have not heard of Single Touch Payroll (STP) yet, we need to talk. Single Touch Payroll (STP) aligns your payroll reporting with your payments. In short, every time you pay an employee, you need to report the details of this payment to the Australian Taxation Office (ATO). These details include salaries, wages, allowances, deductions, PAYG withholding, and superannuation. While this may sound like a daunting task, your payroll and bookkeeping software will (or should) be able to do this for you with just a bit of setup.
An important thing to note, is that Single Touch Payroll will apply to all employees including company directors. If you are a company director who is currently taking wages whenever you wish with only quarterly reporting, your process will need to change.
From 1 July 2018 (next month), Single Touch Payroll is compulsory if you have 20 or more employees. If you have less than 20, it is not mandatory until 1 July 2019 (next year). However, if your process or software needs to change, it is best to taken action now so you are ready well in advance.
What do I need to do?
If you would like further information, you can read about the changes on the ATO website or give us a call. If you are not currently using payroll software, or need help reviewing your settings, contact us to discuss how we can assist you.