Single Touch Payroll is coming for small businesses!
Do you have any employees, including yourself?
Are you self employed as a PAYG earner?
Are you using the right software to comply with the new regulations?
Things are changing from 1 July 2019 and you need to be ready!
Big changes are coming to the way your small business reports its employee tax and super obligations to the ATO.
Using payroll or accounting software that offers Single Touch Payroll (STP), employers send their employees' tax and super information to the ATO each time they run their payroll and pay their employees.
The new system was launched for employers with 20 or more employees last year but, following legislation passed on 12 February 2019, it has now been agreed that STP will apply to all smaller employers (those with less than 20 employees) from 1 July 2019.
No matter how few staff you employ (even one or two), the STP rules will still impact you, even if you don’t currently use a payroll software package (and we know that many small employers still prepare payrolls manually).
To help small employers, the ATO is preparing a number of measures to ease the burden including asking software developers to build low-cost STP solutions at or below $10 per month for micro employers – including simple payroll software, mobile phone apps and portals. They also promise exemptions to businesses with no or limited internet connectivity and an option for employers with up to 4 employees to allow your accountant to report quarterly on your behalf (rather than at the time of each payroll).
Nevertheless, many of the assistance measures for small businesses are still lacking in specific detail and considering that the change comes into force in just a few months, if you are an affected employer – and remember every employer with less than 20 employees is affected – you should talk to your tax or BAS agent (like H&R Block) now to get advice on your next move.