The Australian Taxation Office (ATO) has announced that from 1 July 2019 Single Touch Payroll will apply to all employers, including certain salary sacrificed amounts.
Single touch payroll (STP) is used by employers to report salary and wages, Pay-As-You-Go (PAYG) withholding and superannuation contributions to the ATO on a regular basis.
Previously, organisations with 20-plus employees have been required to use STP since 1 July 2018. However, the new rules now include all businesses with employers – including the situation where payments are made to the owners of the business in the form of salary, wages or director fees.
As a result, the ATO has asked software providers to provide new low-cost payroll options for micro employers (1-4 employees). MYOB and Xero have announced new $10 per month offerings (limited to 4 employees) with other software houses following suit.
The ATO also states that to assist micro employers there will be “a number of alternate options that are not available to employers with 20 or more employees – such as initially allowing your registered tax or BAS agent to report quarterly, rather than each time you run your payroll.”
While the start date for small employers will technically start on 1 July 2019, the Commissioner of Taxation released a statement indicating that small employers can actually start reporting through STP any time from 1 July 2019 until 30 September 2019. No penalties will be applied to mistakes, missed or late reports for the first year.
Plus, if your business is in an area with no viable internet connection, such as some rural and remote regions, then exemptions may apply.
WHAT HAPPENS NEXT…
1 July 2019 is not that far away. If your business does not already use STP compliant software, you may need to upgrade your systems or implement new ones.
The system requires PAYG withholding and superannuation contribution details to be reported to the ATO as payments are made to employees or superannuation funds.
Thankfully, Walker Wayland AMD is here to help.
Please contact our office on 9584 6600 to discuss your options and cost effective solutions
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