What Every Small Business Owner Needs to Know About Single Touch Payroll
Here at Bookkeeping Freedom, we aim to help small businesses stay compliant with government authorities (such as STP –Single Touch Payroll, ASIC, Workcover, long service leave and more!).
We know that it can be a real challenge to stay abreast of all the legislative changes, which is why we are here to help!
One such change is the introduction of STP (Single Touch Payroll). In July 2019, the Australian Tax Office (ATO) made Single Touch Payroll mandatory for all small businesses with staff.
You’ve probably heard about this already, and can find out more from the ATO here ~ but here’s a quick review:
What is Single Touch Payroll (STP)?
STP means for you, as a small business owner, that your payroll reporting now needs to go through the STP system.
This processing of payroll needs to be done by using compliant payroll software, which will allow you to report employee wages, superannuation and PAYG tax to the ATO every single time you do a payroll.
You also need to make sure that you report through the STP instead of doing your usual quarterly reporting! You still need to do your BAS and your PAYG.
As the business owner, it is your responsibility to make sure that this is being done (or hire someone who can help you out!)
If that sounds a bit overwhelming, don’t worry! With the right tools, support and software, you will be able to stay compliant!
If you need any help with choosing the right software, setting yourself up, or managing your STP, please do not hesitate to contact us >>> Book a consultation.
What Do You Need To Do?
As a business owner, you will need to make sure that you are aware of the changes in the reporting process.
Essentially, during each payroll, you need to make sure that the PAYG tax, superannuation data and wages data, is all sent to the ATO. This needs to happen every single time you do payroll!
This means that you need to ensure that your employee’s wages are properly recorded, and that payslips are correctly generated and sent in a timely manner, to your employees. Once your employees have been paid, you then need to ‘file’ this information and send it to the ATO each time.
At the end of each financial year, you make a ‘finalisation declaration’.
The good news is that you no longer need to lodge a PSAR or provide PAYG summaries each year (as you are doing it each time instead).
Also, make sure that you are working with a bookkeeper or accountant that is using your business’s STP compliant software.
It is also really important that you are using compliant software, and that you are working with a bookkeeper who understands STP and how to keep your business compliant.
Now, there is quite a bit more to the STP, but this is a good place to start!
Remember, while this post is meant to help you make informed decisions, it can never replace one-on-one advice from a professional.
Here at Bookkeeping Freedom, we know how stressful new legislative processes are (and what a headache it can cause for you). That’s why we’re here… after all, it’s our job to keep your business compliant and keep YOU stress free.
So, if you have any questions about STP, please send us a message or book a consultation >> please click here.