Single Touch Payroll Is Coming – Are You Ready?
The system was implemented for employers with 20 or more employees since 01/07/18 and will be applied to all employers, including those with 19 employees, from 01/07/19.
There are a few exceptions to this reporting requirement, but for the most part, all employers need to be ready to comply from this date.
**What does this mean to you and your business? **
If you are still using a manual system, or an older version of a standalone accounting software package, to pay your staff, then you will need to change soon.
If you haven’t contacted your software provider to establish the capabilities of your current system for STP, then we’d recommend doing so immediately.
If you haven’t started using STP yet and may need to upgrade your software to enable it to complete STP requirements, then you will need update your payroll system before 1 July 2019.
**How does it work? **
• Your existing Payroll Cycle will not change
• Your payment due date for PAYG-W and Super will remain unchanged
• However, the method of reporting these details to the ATO will be changed, so that the STP system remits that information automatically each pay day
• This regular and electronic version of reporting will in time allow your employees to view their year to date payroll details via their individual MyGov accounts and eventually the system will replace the need to provide Annual PAYG Summaries
**What do I do now? **
Ensure that your software is compatible with STP
Upgrade as required if it is not - there are numerous low cost alternatives for implementing a system capable of handling STP requirements for you
Install and become familiar with the new or upgraded system to ensure that you are ready to go from 01/07/19 without any issues
Phone one of our team to discuss the matter if you are having any concerns or issues with how you will go about the changes
This is not an insignificant change to the way you approach your business operations, but there are many solutions available. Probably the biggest issue for you as an employer is delaying the implementation of an STP system and being familiar with its use prior to the required date.
As always, if you have any concerns do not hesitate to contact one of the Cordner Advisory team on (07) 5504 5700 and we can discuss the issues and solutions with you.