Accountants Melbourne: Complete Single Touch Payroll Guide

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The Single Touch Payroll (STP) is an Australian Tax Office (ATO) initiative that took effect on 1 July 2019. It is designed to allow total visibility over a business’ payroll and ensure that all tax obligations are met by employers. STP has changed the payroll reporting process in Australia and has brought new benefits and challenges to understanding obligations.

Accountants Melbourne & Bookkeepers Melbourne

Our goal is to empower you to become a better, more finance-focused and well-rounded entrepreneur. Contact us at info@skyacc.com.au or 1300 328 855

Single Touch Payroll delivers real time reporting on all payments to the ATO, including salaries, wages, allowances, reimbursements, deductions, PAYG withholdings and superannuation payments. STP is done through accounting software platforms like Xero, QuickBooks and MYOB.

Each time a business triggers a payment event, a report is created and sent automatically to the ATO, detailing each payment made to each employee. Because of its comprehensive detail and regularity, STP eliminates the need for annual payment salaries and payslips. Employees can see all payment information by logging in to their myGov account and checking their payslips and payment information in the portal.

Accountants Melbourne & Bookkeepers Melbourne

Our goal is to empower you to become a better, more finance-focused and well-rounded entrepreneur. Contact us at info@skyacc.com.au or 1300 328 855

A business owner needs to supply the ATO with their ABN, business ID info and accounting software ID number to register for STP. The registration will connect their payroll system and the ATO. Most software platforms allow STP registration. Contact Sky Accountants Melbourne & Bookkeepers Melbourne to discuss your registration.

Starting 1 July 2019, all businesses with employees on their payroll need to comply with STP. Micro-employers or those with 1 to 4 employees can use low-cost solutions that the ATO are planning to have software developers build. The solutions must cost $10 a month or less for them to be cost-effective for small businesses. For now, they can engage a BAS or registered tax agent to report quarterly on their behalf until 30 June 2021.

Business owners still need to complete and submit a Business Activity Statement (BAS) as STP is a separate obligation. BAS is focused on correct GST and PAYG withholding tax reporting while STP is focused on correct payroll reporting.

Accountants Melbourne & Bookkeepers Melbourne

Our goal is to empower you to become a better, more finance-focused and well-rounded entrepreneur. Contact us at info@skyacc.com.au or 1300 328 855

STP streamlines payroll processes and reporting. It automates employee superannuation and makes the business compliant with super stream payments automatically. Businesses used to finalise their payroll at the end of the financial year and supply the ATO with an annual payment salary report with full details of salary, wages, PAYG withheld and super contributions and a payment summary for each employee, showing all income details, super contributions they had received and tax withheld. Now with STP, both reports are no longer required as the information is already reported to the ATO every payday.

Setting up STP can be straightforward and failure to comply with it comes with penalties. 2018 to 2019 was the first 12 months of STP and was considered as a grace period by the ATO. They did not issue administrative fines or penalties and simply aimed to help businesses be knowledgeable and familiar with the system. However, fines and penalties are now in place for businesses who do not comply with the ATO rules.

Small businesses who are repeatedly and routinely late with payments, the penalty rate is calculated at $210 for every 28 days that the report is overdue. This is up to a maximum of $1,050 for small businesses, $2,100 for medium-sized businesses, $5,250 for large entities and $525,000 for global organisations. There are penalties for presenting false information in an STP report as well.

Single Touch Payroll is a measure for the ATO to gain real time visibility over a business’ payroll information and streamline and simplify how businesses deliver reports. For expert advice, contact Sky Accountants Melbourne and Bookkeepers Melbourne so we can walk you through how STP can affect your business and what you need to do to become STP compliant.

Sky Accountants Melbourne

As you look for different ways to grow and improve your business, seeking professional advice could prove to be an important and helpful decision.

You can click here to speak to a businessaccounting and bookkeeping firm. We also offer hospitality business consultation and mortgage services. We will give you a call to know more about your needs. We will explain to you how we can improve your business.

We would love to help you formulate investment strategies and streamline your processes to take your business to the next level.  Our goal is to help you grow your business, find ways to invest more and increase your productivity.

Here are two other ways we help business owners grow their business:

  1. Take our free online assessment and see how much your business is currently worth (free 30page detailed report included)
  2. If you are looking to change Accountants or need advice on how to grow your business, organise a 1on1 session with a Sky Business Expert here

Email Address: info@skyacc.com.au

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Phone: 1300 328 855
Office Address: 902 Howitt Street, Wendouree, Victoria 3355, Australia
Postal Address: PO Box 2234, Bakery Hill, Victoria 3354

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Phone: 03 97444522
Sunbury Office Address: Suite 13, 33-35 Macedon Street, Sunbury, Victoria 3429, Australia
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