When Single Touch Payroll (STP) comes into effect from 1 July 2018, it will change how you must report salary and wages, PAYG witholding and superannuation.
STP should see employers and employees benefiting from a 'single touch' of their payroll software, eventually resulting in all stakeholders being paid and reported to each payroll run instead of once annually, in the case of the ATO.
Your payroll software will need to be updated in order to meet the requirements of Single Touch Payroll.
What can you do to ensure your business is prepared?
Be ready on time
On 1 April, you needed to perform a headcount of your employees, including:
- full-time and part-time employees
- casual employees who were on your payroll on 1 April and worked any time during March
- employees based overseas
- any employee absent or on leave (paid or unpaid)
- seasonal employees (staff who are engaged short term to meet a regular peak workload, for example, harvest workers)
If on 1 April 2018 your employees numbered 20 or more, you are what the ATO considers a 'substantial employer' and you will be required to use Single Touch Payroll from 1 July 2018.
This is also a good time to ensure your data is complete and tidied up in readiness for STP.
What about smaller employers?
Businesses who had 19 or fewer employees on 1 April 2018 will have a little longer to become STP compliant - from 1 July 2019.
But as with SuperStream and the introduction of the GST, upgrading your solution as early as possible puts you in the best position to ready your business - especially if your employee numbers rise.
Have you considered everything?
Preparation and implementation of Single Touch Payroll may require more than you think.
- How will Single Touch Payroll affect your current reporting procedures?
- How will STP change the employee onboaring process?
- What penalties can occur from not meeting Single Touch Payroll compliance?
- Is your payroll data STP ready?
And there could be more depending on your circumstances. All businesses will need to be ready with an STP-compliant solution, and it's never to early to start planning.
What can I do now?
Having a solution designed to handle STP is the first step. Sybiz is working with the Australian Tax Office and the Australian Business Software Industry Association to make sure our users are Single Touch Payroll ready as soon as possible.
We're helping you prepare with regular updates about Single Touch Payroll.
You can download our STP preparation checklist and watch the Single Touch Payroll webinar to learn more about what STP will mean for your business and how you can prepare.
If your business is in need of a comprehensive payroll and HRM solution, see how Sybiz Visipay can get you ready.