Legislation to extend Single Touch Payroll (STP) reporting to businesses with fewer than 19 workers has now passed Parliament. Which means that ALL businesses will now be required to comply with STP reporting by July 1 2019, giving hundreds of thousands of businesses just under four months from now to get on board.
What do you need to do?
For businesses with digital payroll software, enabling STP reporting can be as easy as a few clicks. Simply contact your current software provider and ask them whether the software you use is ready for STP, so you can determine whether you need to upgrade or switch.
For those currently without digital payroll software, the ATO won’t be forcing anyone into purchasing a system just yet. Businesses without digital software will need to comply with the new regime through business activity statement filings, submitted to the ATO. To make this easier, the ATO has promised micro-businesses (1-4 employees) will only have to submit STP reports quarterly for the first few years.
What are your options?
If your business doesn’t currently use digital payroll software, a range of payroll software suppliers (including our favourite, Xero) have pledged to offer low-cost STP solutions to small businesses. These software products are expected to be priced at around $10 a month.
Ultimately, STP has been instituted to protect employees by cracking down on employers’ non-compliance – but a definite benefit of STP is an easier, more streamlined Payroll process that should save small businesses a bucket-load of time and effort. Get on board!
If you’re unsure about transitioning to STP, the ATO’s handy guide to preparing for STP should be of help. And if you have any questions about your STP obligations or how compliance will affect your business, just call us on 9887 8751 or send us an email to schedule an appointment.