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What is Single Touch Payroll (STP)?
Single Touch Payroll (STP) is a government initiative that will change the way you report on your payroll to the ATO from 1 July 2019. The
new reporting requirements will see businesses across Australia report payroll to the ATO on a regular basis.
This new streamlined reporting to the ATO will make it easier for employers to meet payroll processing obligations, and employees to view their information and lodge annual tax returns.
What does this mean for me?
This means that under the new STP rules, you as a business owner will be required to report your salaries or wages, pay as you go (PAYG)
withholding and superannuation directly to the Australian Taxation Office (ATO).
This must be lodged electronically and reported at the same time as your employees are paid. The frequency of reporting will depend on your respective pay cycle.
For example, if you pay your employees weekly, then you must report to the ATO weekly.
What do I have to do?
In preparation for the implementation of Single Touch Payroll, you must take steps to ensure that you are ready and compliant.
Step 1: Choose your STP software?
Under Single Touch Payroll (STP) you will be required to report to the ATO regularly and electronically. This means that choosing the right
software is essential, it is important that you decide on software that suits your business needs. There is a range of software that is
already STP ready for you to try well before the 1 July deadline.
Step 2: Decide how you will report your STP?
Once you have chosen on your STP software, you must decide whether you will report your STP yourself or through a registered agent. As a
registered agent, KDA can report your STP on your behalf. This option alleviates your stress and allows you to be STP ready and compliant
by 1 July 2019.
Step 3: Ensure that your staff information is up to date
As you are now required to report your payroll more regularly, it is important that all your staff details are up to date and current. This
is also a good opportunity to ensure you are:
• Paying your employees, the correct award, whether state or Fair work
• Your employee entitlements such as annual leave and superannuation are being calculated correctly
• Your staff information is accurate and up to date, this includes; full names, TFN, addresses, contact details, date of birth, superannuation and banking details.
Want to know more?
KDA is Single Touch Payroll (STP) ready and can provide all the assistance required for a business to be STP compliant by 1 July 2019. For more information or assistance in reviewing your payroll software and processes to ensure you are ready, contact our team of experts today!