Important Changes to Single Touch Payroll!

From 1 July 2019 all employers need to lodge payroll details through Single Touch Payroll (STP). If you are using a cloud-based accounting software package, that includes a payroll function, you should be able to set up STP with relative ease. If you are in this situation and would like guidance regarding how to set this up, please contact us.

If you are not using accounting software or are using older accounting software not compatible with STP, you will have to look at the different options available to ensure you are compliant with meeting your increasing employer obligations. The Australian Taxation Office (ATO) has asked software providers to provide low cost solutions.  The following link to the ATO provides a list of no cost and low cost solutions https://www.ato.gov.au/business/single-touch-payroll/in-detail/low-cost-single-touch-payroll-solutions/. These solutions are best suited to Micro employers (1–4 employees).

For other larger employers (5 employees or more) we suggest that a comprehensive accounting software solution that provides a complete payroll system should be used. If you require help with this, please contact us.

Employers with 1 – 4 employees are able to have their registered tax or BAS agent to report this information quarterly on their behalf, rather than each time you run your payroll. This is only allowed to help you transition to single touch payroll, as such this is only an option for the first 2 years. Small employers are allowed to start reporting any time from 1 July to 30th September 2019, the ATO will also allow deferrals for additional time to get STP ready. The ATO will not impose any penalties for mistakes, missed or late reports for the first year.

We do ask if you are not using a payroll software to pay your wages that is already STP compliant or are using an older non-compliant software version to please contact us, so we can make sure you are STP ready prior to 1 July 2019. Please do not leave this to the last minute.