Are you ready for Single Touch Payroll?
By Brittney Levinson, Hospitality Magazine
Hospitality businesses are being urged to prepare for Single Touch Payroll (STP), a new procedure introduced by the Australian Taxation Office (ATO) to closely monitor wages, superannuation and PAYG taxes.
From 1 July 2018, employers with 20 or more employees will need to report their employees’ tax and super information to the ATO through payroll software that is STP ready.
Assistant commissioner John Shepherd says STP will provide greater transparency and connect businesses to the ATO through their existing software.
“Employers need to start preparing now in order to be ready for this important reporting change,” he says.
“Single Touch Payroll is a game-changer for both employers and the ATO. Many employers will be able to update their existing payroll software to a version that is Single Touch Payroll ready. Employers with 20 or more employees who do not use payroll software will need to choose a product that offers STP by 1 July 2018.”
Employers with 19 or less employees have another year to prepare, however they can choose to start reporting through STP prior to 1 July 2019 if their software is updated.
Some payroll software providers have asked for more time to get ready, so the ATO says employers should ask if their provider has been given a deferral which will cover them.
The ATO has provided these step-by-step instructions to help buisnesses get ready for STP:
- Visit ato.gov.au/stp and download the ‘get ready checklist’
- Do a headcount of your employees on 1 April 2018 to find out if you have 20 or more.
- If you have software: talk to your provider to find out how and when your product will be ready
- If you don’t have software: choose a product that offers STP. You can ask your tax or BAS agent for advice on choosing a product that suits your business needs.
- Update your payroll software when it’s ready
- Start reporting to the ATO through STP
This article was originally published by Hospitality Magazine.