Is it really a payroll nightmare? We say, don’t be scared – be informed.
For the everyday business owner, STP may look like just another unfamiliar acronym. So what is it? Who does it affect? And what happens if you DON’T comply or act now?
If you’ve decided you better find out what this STP is, you’ve made a wise decision! The clock’s ticking and there are obligations that you, as a savvy business owner, must fulfil. Handily, we’re here to declutter the jargon and make it clear for you.
Single Touch Payroll is the term given to reporting your employee wages to the ATO. It means no more processing of payment summaries (previously called group certificates) at the end of the financial year – instead, you’ll report this information each time you touch a payroll payment.
How? You use a software program such as Xero or MYOB to enter the payroll information, and this then sends the information to the ATO each and every time you pay your people.
What’s sent? The same data you used to send on the payment summaries – earnings, tax and super information, allowances and so forth.
Who has to do this? It’s a legal requirement for every Australian business owner who pays someone (including themselves) a wage, salary, superannuation or any other payroll element. This is regardless of the frequency of the pay, who the money’s going to, how much it is, the age of the employee or how many employees you have. Everyone’s required to report payroll information to the ATO and the deadline’s looming. Yes, the 1stof July 2020 is only a few months away!
Payroll isn’t a monster, but it scares the pants off some business owners – haunting their dreams and causing serious sleep loss. Now the ATO’s added compliance requirements, you may be struggling to wake up from your nightmare. But don’t fear! We have solutions to help you in setting up the necessary software to manage the payroll itself, as well as organising STP compliance. We also work with HR partners to ensure you’re given the correct information about your situation.
There are plenty of other areas of business to stress about, but payroll doesn’t have to be one of them. If you feel you’re in over your head, you’re terrified of the payroll paperwork or you’re worried that the ATO and their legal team will be coming after you, perhaps it’s time to give us a call – we can tame the monster and give you a more peaceful night’s sleep.
Read more about your ATO obligations around STP here.