July 23, 2018 * Loren at 2:42 pm
Single Touch Payroll successfully lodged since 1st July 2018
Four of our SapphireOne testimonial clients, Newkem Australia, Monier Prime Rooftiles, Frutex Australia and Moyle Bendale Timber have processed payruns this week and successfully lodged their first Single Touch Payroll (STP) event for the current financial year. Numerous other clients have also successfully lodged their first STP event with the Australian Taxation Office within the first week of its operation.
The Australian Tax Office has made it mandatory for any business operating with a staff capacity of 20 or more employees to implement a working Single Touch Payroll solution on or before July 1, 2018. SapphireOne was certified for this Single Touch Payroll on 1 May 2018.
To assess whether you need to implement Single Touch Payroll on July 1, 2018 you were required to do a count of your Payroll / HR employees as of 1 April 2018.
If this count is 20 or more, then you are a ‘substantial employer’ and will have to report through STP. If it is 19 or less, then reporting through Single Touch Payroll will be optional until 1 July 2019. After that, it becomes mandatory for every employer to report through STP which is of course subject to changes in the legislation.
As part of the Single Touch Payroll process, the ATO matches the information sent through the portal against the corresponding employer/ employee profiles. As a result, businesses will no longer be required to complete payment summaries at the end of the financial year as it will have already been done and available to employees through myGov.
The following are some important aspects for employers to know regarding the Single Touch Payroll process:
- A regular pay cycle (pay event) is when an employer carries out payroll at fixed regular intervals to remunerate employees. This is usually weekly, fortnightly, bi-monthly or monthly.
- When you start reporting through your Single Touch Payroll-enabled solution, your pay event will need to include minimum reporting requirements in order for the ATO to receive the file.
- The employer must report the year-to-date values of gross salary or wages, allowances or other payments (as relevant), deductions and PAYG withholding for each employee included in each pay event.
If you currently fall into the “Substantial Employer” category and do not yet have a solution that works with STP, contact one of our SapphireOne team to go through your options in finding a resolution to your current systems short comings.
For a sneak peek at the full capabilities ERP, CRM, Accounting Software, Human Resources, Payroll, Assets and Document Management, check out SapphireOne and request a live demo, it is everything you’ll ever need to make your company management a success. Know more about us.
Tags : -