From 1 July 2019, Single Touch Payroll (STP) has applied to all businesses employing staff in Australia. STP uses your payroll or accounting software to send your employees’ tax and superannuation information straight to the Australian Tax Office (ATO) after each pay run is processed.
Spoken about as the single largest compliance program update since the GST, remarkably, it’s reported that a YouGov Galaxy survey of 517 small business owners found that 70% have did not know what was required, and more than half had enough knowledge about how to become compliant.
All employers should now be operating within the STP requirements unless they have specific approval to commence STP at a later date (which is rare.)
This will mean your employees will be able to see their year-to-date tax and superannuation information via their myGov account. Plus you won’t need to provide them with payment summaries from the 2019-2020 financial year. They will receive an income statement via their myGov account instead.
You will still need to provide your employees with a payslip, as this is a requirement of the Fair Work Act 2009.
Whilst making the process around reporting to the ATO simpler, it also encourages employers to ensure they pay all their employee entitlements and obligations on time.
If you don’t currently use payroll or accounting software, it’s now imperative to consider your options. You may choose to use a low-or no cost STP solution, or you may be interested in reviewing your options to outsource your payroll and human resources entirely (we can help you).
Thanks to Smart Company for the polling info.
*This is general information only and doesn’t take your specific business circumstances into account.