What is tax planning? Essentially, tax planning is something you do to put your business into the best possible tax position. After all, nobody... Read more
The commencement of Single Touch Payroll (STP) is quickly approaching with employers of 20 or more employees (referred to as ‘substantial employers’) required to be STP-enabled by July 1 this year. For those employers with less than 20 employees, the transition to STP will be required by 1 July, 2019.
Altitude Advisory General Manager Kristen Buik explains.
STP is a government initiative to streamline business reporting obligations. Employers will be required to transmit data to the ATO as and when employees are paid, including salaries and wages paid, Pay-As-You-Go (‘PAYG’) tax withheld on those salaries and wages, and what superannuation will be contributed on the employees’ behalf. In addition, employees will be able to access their updated data via the myGov portal.
While Xero is one of the software providers that will be STP compliant, there are many more that won’t be. It’s the responsibility of business owners to ensure they are reporting in line with ATO guidelines irrespective of the software they are using.
The timeline is as follows:
Aside from a compliant payroll solution, there are other internal processes and systems that might need updating with the imposed changes. Communication to your existing team, on-boarding of new team members and ATO message capture to name a few.
Luke Talbot-Male, Adventures Beyond
Gloria Rowett, Marion Holiday Park