When it comes to a business SWOT analysis, government changes should always be listed as an opportunity and a threat. Why? Because there’s regularly significant changes to legislation that means a change of business practices.
Single Touch Payroll (STP) will start impacting businesses with over 20 employees from 1 July 2018, however, before that date, there are some steps your business will need to prepare for:
• On 1 April 2018, you will need to do a headcount of employees to assess if Single Touch Payroll will apply to you this year or next year, if you have under 20 employees. Check out this post for details on how to correctly count the number of employees.
• Check with your payroll platform or payroll service provider to ensure the payroll processing system will have the required STP functionality in place before 1 July 2018.
• Allocate income to pay for employees’ entitlements, such as their super and PAYG before they fall due.
Although change is often challenging, in this case, this reporting should help your business to keep accurate records of payments and have them balance to your ATO reporting simply and easily. If you are only employ over 20 employees for a short part of the year (i.e. for seasonal, harvesting work) your business may be able to apply for an exemption of STP for the coming 12 months.
For employees, future payroll data will become available via their MyGov account for end of financial year reporting, for example.
If you’re concerned or confused about these changes and how it will impact your business, get in touch with our Workplace Partners for an obligation free consultation today.
Info from www.ato.gov.au/singletouchpayroll