Single Touch Payroll (STP) aligns your reporting obligations to your payroll processing and requires companies to report information like employees' salaries and wages, allowances, deductions (for example, workplace giving), pay as you go (PAYG) withholding and superannuation to the ATO.
STP reporting started gradually on 1 July 2018 for substantial employers (those with 20 or more employees) and is now extending to include employers with 19 or fewer employees. Starting from the 1st of July 2019, all businesses will be required to be STP complaint.
However, with SuperStream and the introduction of the GST, upgrading your payroll software as early as possible puts you in the best position to ready your business - especially if your employee count is growing fast.
Here is what you need to consider:
- How will Single Touch Payroll affect your current reporting procedures?
- How will STP change the employee onboarding process?
- What penalties can occur from not meeting Single Touch Payroll compliance?
- Is your payroll data STP ready?
Where should you start?
- Read. Read. Read. Before you upgrade to the STP complaint version of your software or start reporting to the ATO, read about STP and how it is changing your current reporting procedures;
- Watch videos and attend webinars. Earlier this year software providers released videos and held webinars to update users with their progress with the STP functionality on the software, the changes in the user interface and how to use the STP feature. Watch the Sybiz webinar and access the MYOB STP resources here;
- Speak to one of our consultants to scope out the upgrade process of your software. The earlier you start, the more time you will have to accustom yourself with the new version. Additionally, you can start reporting on time or even earlier and avoid any delays that may occur due to last minute upgrade.
To know more about STP, go the ATO link here