Single Touch Payroll (STP for short) is on its way. It will hit our shores on the 1st July 2019. STP has been slowly introduced since 1st July 2018 for those businesses with 20 employees or more. It is now extending to all businesses with 19 employees or else as compulsory come July 1st this year.
What Does This Mean For Employers?
STP changes the way employers report their employees’ tax and super to the ATO.
The introduction of Single Touch Payroll means all employers who have anywhere from 1-19 employees will need to register. With the use of accounting software with STP, employees’ super and tax information is sent to the ATO every time an employer runs their payroll. The ATO will receive the information directly through the STP or through a third party (depending on the set-up of your software provider).
Xero will offer an option for payroll only at $10 a month.
For those micro employers of 4 employees or less, there will be other alternatives available such as allowing your registered BAS agent to report your figures quarterly, as opposed to every payroll.
Find out more about Single Touch Payroll on the ATO website.
– Jane Morgan is the Director of End of Month Angels, a consultancy firm specialising in Trust Accounting. Jane knows the legislative requirements of running a successful Real Estate office through her 21 years industry experience. Don’t trust just anyone with your trust accounting. Book an appointment with an End of Month Angel today.