• Your cart is empty.

Is Your Small Business Ready for Single Touch Payroll?

}

14 Jun, 2019

In the past, employers used to report payroll activity to the ATO on an annual basis. The ATO has introduced what is called “Single Touch Payroll” (STP) requirements that means employers have to report after each payday.

Businesses with more than 20 employees switched to the new system on 1 July 2019. Employers with less than 19 employees need to start reporting via single touch payroll before 30 September 2019.

Micro businesses (less than four employees) have additional options, including using STP or through their quarterly reporting through their tax or BAS Agent. The option to lodge via your tax or BAS Agent is only available until 30 June 2021.

What’s changing

  • No more payment summary annual reports needed for the ATO.
  • No more employee benefit summaries. The STP sends the details directly to the ATO and employees can check this information by logging into their myGov account.
  • You need to report to the ATO online after each pay run, using a format called Standard Business Reporting (SBR).
  • Your super guarantee liability will be included through STP, and super funds will report to the ATO when you have made payments for your employee’s superannuation.

What stays the same

  • Your pay cycle.
  • You still need to provide payslips to your employees.

Most good payroll and accounting packages have STP capability built-in. Talk with your bookkeeper or accountant to help you correctly set up your STP reporting requirements, and to walk you through the new steps you need to do each pay run.

Remember to also talk with your employees about the changes, particularly around tax time as they may be confused at not receiving their employee benefit summary/group certificate.

The ATO has taken a lenient approach to STP compliance during the first year of operation for the larger businesses, and is expected to do the same for small and micro-businesses. Businesses generally have not been penalised for mistakes, missed or late returns during the first year of operation.

For more resources about STP, including some handy factsheets and checklists, visit the ATO Website.

Instant HR Policies & Procedures Manual

Need help with your HR?

The Instant HR Policies and Procedures Manual saves weeks of work in creating compliant human resources policies for your team.

Ingrid: Lead Author, Australian Employee Manual

HR Author and Lecturer with over 25 years' experience in human resources and workplace relations in Australia. Lead Author of Instant HR Policies & Procedures, NDIS Direct Employment HR Manual, and Employee Performance Reviews: Tips, Templates and Tactics.

About Us

We are an Australian human resources business specialising in small businesses and not for profits, based in Brisbane, Australia.

 

If you are an Employee and need HR Advice, call Fair Work Australia 13 13 94

 

 

Our Most Popular HR Product

Recent Posts

Related Posts

Can Employers Mandate a COVID-19 Vaccination?

Can Employers Mandate a COVID-19 Vaccination?

With COVID-19 vaccinations rolling out in early 2021 can employers require all employees get a COVID-19 vaccination as a condition of employment? This is a very vexed question because the issue is at the intersection of public health, employer legal requirements,...

Workplace Relations Proposed Reforms – What You Need to Know

Workplace Relations Proposed Reforms – What You Need to Know

The Federal Government has introduced two new bills to amend the Fair Work Act 2009 (Cth), Fair Work Amendment (Ten Days Paid Domestic and Family Violence Leave) Bill 2020 [No. 2] (Cth) andFair Work Amendment (Supporting Australia's Jobs and Economic Recovery) Bill...

Casual Overtime Clause Updates

Casual Overtime Clause Updates

As part of their four-yearly review of modern awards, the Fair Work Commission considered the overtime provisions relating to casual employees contained in modern awards. The intent was to remove ambiguity in relation to: How casual and overtime loadings...