Single Touch Payroll – Cost effective options & How Poole Group can help you!
SINGLE TOUCH PAYROLL:
Single Touch Payroll (STP) is a new legal requirement to report salaries and wages, PAYG withholding and superannuation via STP-enabled software to the ATO each time you pay your employees.
With the correct software all data is sent as processed in real time.
By implementing this system the ATO will have wider reaching ability to data match (Child Support & Centrelink). From 1st July 2018 STP became compulsory for employers with > 20 employees. For employers with 19 employees or less, the start date for STP varies but you should ensure that you have reviewed your situation prior to 1st July 2019 to ensure that you comply.
There are some benefits of the new system:
- You’re no longer required to submit a payment summary annual report;
- You’re no longer required to prepare payment summaries, however you will be required to provide a finalisation declaration by 14th of July each year;
Most of the widely used accounting programs such as Xero, MYOB etc easily handle the transition to STP, although there may be some increased costs depending on your program.
The Tax Office realises that not every small business has payroll software in place and have ensured that it won’t be compulsory to purchase such software. The ATO is currently working with different software providers to develop free and low cost options to report under STP.
Poole Group is here to help you!
If you need assistance with STP or require professional payroll and accounting services, please contact us at Poole Group. Call us on 07 5437 9900 or send us a message through our website.