Using Single Touch Payroll Accounting & Bookkeeping
Single Touch Payroll (STP) is a new, mandatory reporting system for businesses to use when processing their employees’ tax and superannuation information. The ATO is strongly encouraging all businesses to make the switch and start using the STP system as soon as possible, and to meet their change over date deadlines. At Small Business Works Chelsea, we can help you to set up and manage your Single Touch Payroll Accounting responsibilities, as well as provide tax, accounting and bookkeeping support.
Whether you are a small or large business, using STP will be compulsory for all employers by 30 September 2019. Our expert Business Tax Accountants Chelsea can assist you to make the move to STP, recommend the most suitable STP-enabled software, and help manage your accounting and bookkeeping responsibilities.
Single Touch Payroll deadlines will differ depending on your business size:
– Large employers with 20 or more employees should now be reporting through STP or have applied to the ATO for a later start date.
– Small employers with 19 or less employees will need to report through STP any time before 30 September 2019. This is a gradual transition and employers are encouraged to start implementing the system from 1 July 2019.
– If you’re an employer with four or less employees you will have additional options.
For more information, visit the ATO website or speak your Tax Accountant.
How STP Works
Single Touch Payroll works by sending the tax and super details from your payroll or accounting software through to the ATO. This streamline process occurs every time you run your payroll, but it does not affect your pay cycle or pay slips.
Important notes to remember:
– Employers will run your payroll, pay your employees as normal and give them a payslip. Your pay cycle does not need to change, and you can continue to pay your employees weekly, fortnightly or monthly
– Business’ STP-enabled payroll software will send the ATO a report including details on salaries and wages, pay as you go (PAYG) withholding and super information.
– If you make a mistake in your STP report, you can correct it in the following report. The ATO will not penalise you for making mistakes that you correct.
– Employers will no longer need to give their staff a group certificate or payment summary at the end of the financial year. Once you have finalised and reported the information through STP, your employees or their registered tax agent will be able to lodge their income tax return using the STP information available in ATO online services.
– Employers will no longer need to provide the ATO with a payment summary annual report (PSAR) at the end of the financial year for the payments you report through STP.
Learn more about your Single Touch Payroll Accounting responsibilities, please visit the ATO website or speak with your Small Business Works Accountant.
For more information or to schedule an appointment, please contact us below or call us on (03) 9773 3660