Are you ready for Single Touch Payroll?
The Government of Australia has initiated Single Touch Payroll (STP), a reporting system for the employers to report to the Australian Tax Office (ATO) on their payroll.
Single Touch Payroll streamlines the process of reporting payroll information by the employers
Employers will be required from 1 July 2018 to comply and provide all the details of their employee’s payroll, including salaries/wages, benefits, bonus, deductions etc. with Single Touch Payroll, upon their immediate payment to the employees
Reporting set to change
When an employer completes an employee payroll through STP, information will be automatically updated with the Australian Tax Office. It allows the employer to continue with their normal payroll schedule even if this comprises of part payments. Now, with a touch of a few buttons, Payroll/HR can be managed on the move with STP.
Employers with 20 employees or more will have to report through Single Touch payroll from 1 July 2018. First, you have to do a headcount of your payroll employees on 1 April 2018. If the headcount 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 STP 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.
ATO issues guidelines on how to do a headcount and the type of employees to be included in the headcount. For penalties and deferrals after reporting through STP, ATO has given a transition period of 12 months for employers. Check with the ATO for any information related to exemptions.
Most employers pay their employees and manage their payroll accounts through payroll software. If the employer already has a payroll solution, then they will need to update for Single Touch payroll. If the employer doesn’t have a Payroll software, they will need to adopt a solution that allows them to submit their information to the Single Touch payroll system. Employers should select the best software that suits their business and can manage their payroll, tax calculations and payslips.
Generate your HR reports, payslips and manage all your payroll tasks with SapphireOne Payroll/HR Software. SapphireOne provides tailor-made solutions with its SapphireOne Accounting Software, SapphireOne ERP Software, and SapphireOne CRM Software.