Despite the 30 September deadline for employers with 19 or fewer employees to move to Single Touch Payroll (STP), there’s still a significant number of small businesses not using the tax and super reporting system.
Following last year’s introduction of Single Touch Payroll (STP) for employers with 20 or more employees, employers with 19 or fewer employees are also now required to report salary or wages, PAYG withholding and super information to the ATO from their payroll solution at the same time they pay their employees.
STP delivers benefits to both employers and employees.
For employers, it streamlines payroll processes and alleviates the need to provide employees with a payment summary.
For employees, they’ll be able to see their year-to-date pay, the tax that’s been withheld from their pay as well as view their super payments throughout the year.
And for the ATO, it provides greater visibility in regards to unpaid super on late payments.
The first thing businesses need to do is to choose a payroll software that offers STP reporting.
Employers can report from their existing payroll or accounting software if it’s STP-enabled, they can choose to move to an STP-enabled payroll software, they can select a no-cost or low-cost solution or they can ask a third party such as a registered tax or BAS agent or a payroll service provider to report for them.
For the first year, there are no penalties for missed or late reports, however it’s a good idea to contact the ATO to request more time if you need it.
There’s help and support for employers who might need more time to get organised. Just contact the ATO on 13 28 66 or visit their website for further information.