Listen to HBG Tax and Accounting’s Directory Gemma Heaney as she discusses;
What You Need to Know about Single Touch Payroll on The Small Business Talk Podcast with Cathy Smith .
Or read on to find out more.
Single Touch Payroll (STP) is a new way of reporting tax and super information to the ATO. Employee’s tax and super information is sent directly to the ATO every time payroll is processed, via a third-party provider or from your own software.
Business administration is time consuming and often complex for those not experienced in the field. The introduction of Single Touch Payroll by the Australian Government (ATO) aims to streamline the process of payroll reporting with the aim to provide real-time visibility of businesses to all small businesses with employees. It may seem a little extreme to some businesses to submit formal reports every pay run, however this process aims to improve compliance and increase transparency in the payroll process of Australian business.
So what do you need to make sure you are running your STP efficiently and correctly before the 1st July 2019 cut off?
- How Will You Report ?
- Who Will Report For Your Business?
- What Software Is Best For You?
How Will You Report?
The ATO will have issued you with an Implementation Guide and Transmission Protocol, which basically means a ‘how-to guide and sending procedures’, to assist you in submitting your STP information to them.
The first step is to determine how you will report through STP. This may depend on the size of your business, and if you currently use payroll or accounting software.
You can choose one of the following options:
- Report through payroll or accounting software that offers STP reporting
- Ask a third party, such as a registered tax or BAS agent, or a payroll service provider, to report through STP for you, (however, you must be aware that it’s your responsibility as an employer to make sure they use STP-enabled software)
Who Will Report For Your Business?
Regardless of whether you utilise your own software or you use a third party to report, you must nominate an employee (or yourself) to be the contact for the ATO, to lodge and to authorise STP reports each cycle. This contact is listed in the STP pay events and is usually someone who understands your payroll amounts and how it is calculated, such as your accounts or payroll manager. If you choose to utilise the services of a third party, you will need to link this relationship at a role level with the ATO.
What Software is Best for You?
Find out how your current payroll software provider will offer STP reporting. This may be through an update to your existing software, or an additional service. Older software products may not be updated to offer STP reporting.
HBG Tax and Accounting can take the stress out of STP reporting and are completely STP enabled, with secure electronic platforms that ensure efficiency and compliance every time you process your payroll functions.
Take the guesswork out of payroll and call HBG Tax and Accounting today.
