Single touch payroll (STP) requires employers to report tax and superannuation information each time they pay their employees via STP enabled software.
This was introduced in April 2018 for employers with more than 19 employees.
Legislation has now been passed in parliament to extend STP reporting to employers with less than 19 employees from 1 July 2019.
Our clients who have less than 19 employees should act now to ensure STP compliance by this date.
For clients that already use payroll software, they should contact software support to obtain information on how they can assist with STP reporting.
For clients that do not use payroll software, the ATO have provided a list of low-cost solutions, ideal for employers with 1 – 4 employees, refer to Low cost single touch payroll solutions
Please be prepared but don’t panic. The ATO have indicated that they will be flexible, reasonable and pragmatic in relation to STP transition for small businesses. The ATO understands there will be circumstances where more time will be needed to implement STP or lodge reports. They have advised us that:
- Employers with 1-4 employees will be offered help to transition to STP
- Extra time will be granted to any small employer who requires additional time to start STP reporting
- No penalties will be applied for mistakes, missed or late reports for the first year
- Exemptions from STP reporting will be provided for those employers experiencing hardship, or in areas with intermittent or no internet connection
Should you require any further information, please do not hesitate to contact Brealey Quill Kenny Accountants at our Canning Vale, Perth office on 08 9256 2777 or email firstname.lastname@example.org