Introduction to Single Touch Payroll
If you maintain a small business with at least 20 staff, you should get ready for the Single Touch Payroll activity.
From 1st July 2018, the Australian Taxation Office’s Single Touch Payroll (STP) rollover begins. The new system that changes how employers report to the ATO, will require small business owners with at least 20 staff to overhaul or supplant current payroll systems.
What is Single Touch Payroll
Single Touch Payroll is ATO’s latest consistency guideline. It offers a more streamlined announcing system, which enables you to follow costs and break downtrends.
All representative assessment, super, compensation, and PAYG retaining data will be accounted for to the ATO through the new software. This will be a major change from the current system, which is lodged through paper or manual submissions.
How might this benefit You?
To be qualified for the transition, your small business must have more than 20 staff (headcount, not full-time same) as of 1st April 2018.
When the new system is completely turned over in 2019, the data you report on throughout the following fiscal year will be pre-filled into future action statements.
This information will also be pre-filled into myTax, resulting in an easier process for any individual who prepares their returns.
Businesses will have continuous access to payments to take into account for a smoother and more productive reporting process.
little Business, Big Benefits
Single Touch Payroll revealing will empower everybody inside the business to see more updated tax, pay and tremendous information. Doing the switch comes with enormous benefits for small business owners and staff. Some of these include:
- Payment summaries are not required: STP makes all data easily accessible online through myGov, killing the requirement for pay summaries to be produced and distributed to staff.
- Double cross-checking of possible errors is not needed: ATO will pre-fill fields W1 and W2 in your BAS, wiping out the headaches of double cross-checking.
- Streamlined Reporting: Payroll is joined with your pay run process, offering vital time savings come the new fiscal year. STP includes up to 50 administration and accounting reports. These reports can be sent out to viable accounting systems.
- Automatic revealing: Accumulated leave is worked out consequently and payments are taken care of as per legislation. New employees approach speedier online initiation forms, including Tax File Number declaration. As a result, compliance efficiencies will increase.
- Interactive: STP links with electronic banking and expense office so all numbers add up.
- No additional cost.
Further visit: The Best Payroll Outsourcing Service For Small Restaurant Beyond 2020
- Effective tax returns: All payroll data is pre-filled into your assessment form and you won’t need to trust that an installment summary will finish.
- Real-time access: Easily see your superannuation, return pay, and tax through myGov.
- Electronic initiation forms: Having fast and easy access to all online forms makes starting a new job easier.
Preparing Your Business STP
On April 1st, 2018 the ATO cautioned small business owners to do a headcount of staff to decide if the new systems applied.
For small businesses with 19 staff or less, switching over to the Single Touch Payroll system is intentional. In any case, the transition is scheduled for 1st July 2019 which is subject to the passage of legislation in the Federal Parliament.
For every other person, preparing your business STP is compulsory this year. This is what you can start doing now:
- If you as of now use Accountants Melbourne, you can refresh the STP system. Regardless of what item you use, this will have you covered from 1st
- Check with your bookkeeping software supplier whether your present payroll systems will support the changes.
- Make sure payroll staff are advised about the changes.
- Review old payroll systems and update representative data before 1st Check you’re paying staff effectively including super entitlements.
- If you need additional time or your software supplier isn’t prepared, contact the ATO today to apply for a deferral.
Free STP checklists can be downloaded from the ATO website.
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