Lately there has been a lot of conversation about ‘Single-Touch Payroll’, ‘STP’ or ‘One-Touch Payroll’. Still unsure what these terms mean? Or how this new reporting system will impact your business?
Finding the time to keep up to date with legislative changes that affect your business are often put to the bottom of the to-do list! To keep everyone in the loop, we have put together this article to give you a quick overview of the new Single-Touch Payroll (STP) system and how it will change the way you are currently reporting tax and super.
In a nutshell, Single-Touch Payroll is the ATO's replacement for annual PAYG payment summaries (group certificates). From 1 July 2019, all businesses will be required to report their payroll information directly to the ATO at the end of each pay period.
If your business is already set-up on a cloud based accounting software package such as Xero, this change will simply involve another click (once registered with the ATO). Xero Payroll creates an a report each time you pay your employees. This report is then sent directly to the ATO, saving you the hassle of trying to generate the reports yourself or finding the information at the end of the financial year.
If you are not already using an accounting system to complete your payroll, you will need to research the most suitable solution for your business before 1 July 2019. There are also low cost options available for small companies who only need to pay their directors.
At Beda Chartered Accountants, we currently use Xero software to keep our clients up to date with their payroll and super contribution obligations. To speak to one of our accountants about getting your business ready for Single-Touch Payroll, contact our office on 02 4340 2415 or email us directly at office@beda.com.au
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