Since July 2018, companies with 20 or more employees have been required to use single touch payroll reporting through accounting systems. Now small businesses with 19 employees or less will also be required to implement STP starting 1 July 2019.
Single Touch Payroll or STP is a system that reports salaries, wages, taxes and superannuation information to the ATO each time a business pays its employees. This can be done automatically. With STP, employers will be able to view their year-to-date payment record and employees will be able to request a copy of this information from the ATO as well.
Who’s part of the headcount? Employees which include full time staff, part time staff, casual employees who have worked from March and are part of the payroll as of 1 April, overseas staff, absent or on leave staff and seasonal employees who are employed on 1 April. Those who have ceased employment before 1 April, casual employees who didn’t work in March, independent contractors and staff hired through third parties, office holders, company directors and religious practitioners are not included in the headcount.
Plenty of small business employers, especially in the food industry still manually process their payroll. Now is a good time for them to embrace digital bookkeeping to keep ahead of the game. The ATO is expected to offer low-cost STP solutions to aid small business employers. These solutions include mobile phone apps, simple digital bookkeeping tools and payroll software. Businesses with one to four employees are only required to report STP quarterly, instead of every pay.
As you look for different ways to grow and improve your business, seeking professional advice from a business accountant and consultant could prove to be an important and helpful decision.
You can click here to speak to business experts. 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.
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