Biggest change since GST … or is it?
By Leonie Taylor
Single touch payroll
Single touch payroll (STP) is a new way of reporting tax and superannuation information to the Australian Taxation Office. This reporting is done digitally through STP-enabled software and is submitted after every pay run.
Businesses will no longer be required to produce payment summaries for employees or submit a payment summary annual report. Instead, employees will find their payment summary information at myGov and it will be prefilled on their tax returns.
Last year on 1 July 2018, employers with 20 or more employees started reporting and soon it will be everybody else’s turn. On 1 July 2019, all employers are to be reporting to the ATO via STP.
Are you ready?
Upgrading to your current software
If you are already using payroll software, you should check that it will be STP-enabled. Most major payroll providers such as MYOB, Xero and Wagemaster (Agrimaster) have upgraded their software to be compliant. It will be a matter of upgrading from your current version.
Some of the costs for the upgraded software are:
Not using software
If you still prepare your payroll using a manual system, or if you use an old payroll system that won’t be STP-enabled, there are various options available.
Your best option will depend on how many employees you have and which would be the most economical for your business.
Note that all prices were current at the time of publication.
We can help
If you are confused about which software program to choose, give the team at Lincolns a call to discuss your options and find the best fit for your business.
Once you have made your choice, Lincolns can also help you with the installation, set up of STP and registration of your software with the tax office for STP.
Don’t leave it to the last minute to be ready for single touch payroll. The due date to be registered and reporting is fast approaching on 1 July 2019. There are several cheap options out there to get ready and Lincolns can help you with your choices and get you set up in time.
Just think, there will be no more payment summaries to be done each year, just a few extra clicks after the completion of each pay run. Your payroll duties just got easier.