April 1, 2019 1:09 pm | by Archana
We have all heard about STP (Single Touch Payroll) reporting requirements, but are you ready? In case you haven’t heard, STP is the new way of reporting tax and super information to the ATO. Cut-off date is nearing with compliance on 1st July 2019.
Phase 1: Single Touch Payroll became mandatory on 1st July 2018 for all employers with 20 or more employees.
Phase 2: Single Touch Payroll will be mandatory for employers with 19 or less employees from 1st July 2019. Since July 2018, all employers were able to move over to the new reporting system.
If you use a payroll or accounting software, your provider should offer STP. Ask for their accreditation and how long they have been offering the service, this ensures your payroll obligations are streamlined. SapphireOne Payroll System Australia has been accredited since 1st May 2018 with clients enjoying from 1st July 2018.
Ultimately, it’s your responsibility as the employer to ensure you are STP enabled. Every time you run your payroll, you have to send employees’ tax and super information to the ATO. Don’t fall into the danger of smaller software companies claiming to be accredited. Make sure they will help you with the transition.
What are the next steps for your Payroll System in Australia?
If your software company is not ready, check they have applied for a deferred start. The ATO is more lenient for clients and companies of 19 or less employees. Here is the link for ATO deferred start conditions
Otherwise it is important to ensure you train all your staff who will be involved in payroll. Go through current employees’ payroll details and check they are up to date.
Once you are STP ready, take a look at the following steps recommend by the ATO. This ensures the files you send to the ATO are successful. ATO start reporting checklist.
If you are not ready, contact your accounting software’s support team and keep up to date with their communications.
SapphireOne was the first to achieve world-wide full STP accreditation on 1st May 2018. Our clients have been enjoying the benefits since July 2018. For more information – SapphireOne Business Accounting System and STP.