Whether you like it or not, Single Touch Payroll (STP) is coming; and when it does, it’ll be here to stay!
Let us give you the basics.
When do you need to be ready for Single Touch Payroll?
If you employee 20 or more staff, you’ll need to be compliant by 1 July 2018.
If you employee 19 or fewer staff, you’ll need to be compliant by 1 July 2019.
If you are a closely held employer (that is, you and/or your spouse are the only employees of your business), you’ll need to be compliant by 1 July 2020.
How will it affect you?
Let’s do this in dot points; we’ll start with the things that are likely to impact your business the most:
LBW’s take on STP?
If you pay your staff properly already, once you get your head around how the software works, you shouldn’t notice a huge change.
STP will mean that each pay run will need to be done at the same time the employees are paid. Most businesses already do this; some don’t.
It will also mean that keeping track of your payroll manually or via ‘desktop’ software just isn’t going to cut it anymore. You will need software that is compatible with STP reporting. Again, many businesses already have this; some don’t.
Some business owner’s still use business cash for personal spending and calculate their wages at the end of the year – under STP; this isn’t going to cut it.
From a compliance and audit perspective, it will mean that the ATO gets real-time data (and trust us, they love real time data). They’ll know when you’re late lodging, how much you owe them and when you owe it. Given the significant investment they have made in the STP system, it would be wise to assume that they’ll be using this information to come down harder and faster on non-compliers.
Our advice? Embrace STP and make sure you’re ready. To be frank, you haven’t got a choice.
To help prepare our clients for Single Touch Payroll, we’ll be offering the following services:
Cost: Contact our office to discuss your options.
If you need more information on Single Touch Payroll, or need a hand getting set up contact our office today.