by Mike Sweeney
Update - Legislation passed in February 2019 to extend Single Touch Payroll (STP) to employers with 19 or fewer employees starting from 1 July 2019. Small employers (5-19 employees) will need to begin reporting by 30 September 2019 but can begin reporting early if already using payroll software which offers STP. Deferrals past 30 September 2019 can also be applied for from the ATO. Micro Employers (1-4 employees) not currently using STP enabled software will have the option of reporting quarterly instead of each time payroll is run. Flexible reporting options are also available for employers with closely held payees (eg family members working in a business). More information on STP and reporting requirements and options can be found here https://www.ato.gov.au/Business/Single-Touch-Payroll/What-is-STP
Lee Green has reviewed the low ($10 or less per month) and no cost STP software solutions listed on the ATO website and can provide advice on which option will best suit your business. Lee Green may also be able to report through STP on your behalf. Please call us on (08) 8333 3666 or email us for any STP queries.
Single Touch Payroll (STP) requires employers to send the ATO payroll information with each pay-run rather than in a summary at year end. For employers with 20 or more employees it has been in place since 1 July 2018. With legislation before parliament, which is expected to be passed shortly, this will extend to all employers from 1 July 2019.
Employers should start considering now how they are going to meet the continuous reporting requirements and make sure they have systems in place before the deadline. If you are already using a payroll software package (such as Xero, MYOB or Reckon) you will be able add this function to your normal payroll process without too much headache. If you are currently preparing your payroll manually or in a package which doesn’t support STP, you will need to consider choosing a payroll solution which provides this functionality. To help, the ATO released a list of low-cost STP software providers:
Lee Green has already assisted a number of employers which meeting their STP obligations. Please contact us to help you choose, install and setup the best solution to suit your needs.