New ATO legislation comes in July 1 2019 — ALL employers will need to report using STP
Single Touch Payroll (STP) already applies to employers with 20 or more staff, but from 1 July 2019 it applies to ALL employers — even if you only employ 1 person. If you need assistance with setting up this new system and becoming STP compliant, Instone Accounting and Business Services ( Adeleiade and Portland) is here to help.
What exactly is STP and how does it work?
Payroll data must be sent to the ATO each time you pay your employees. Your payroll or reporting system must be STP Compliant, so that each pay cycle you can report the following items to the ATO:
- Each employee’s name and tax file number (TFN)
- Gross amount paid
- Tax withheld on the gross
- Ordinary time earnings for the period, and
- Any superannuation guarantee obligations.
The ATO will then report to you each month or quarter the correct amount of PAYG tax withheld to pay in your activity statement. Also, each quarter there will be information available regarding your superannuation obligations to either pay the ATO clearing house or your independent provider.
As part of the new tax regime, the reports and liabilities owing will be available to you in real time. This means that, if you wish, you will be allowed to make payments towards PAYG tax withheld and superannuation contributions in your pay cycle before the due date.
If you have a manual pay system, you will need new software
If your system is still manual, now is the time to discuss and review your internal processes. We can help you choose the right software and get your business, your staff and your payroll system STP ready.
Excellent Track Record with Compliance – Keeps our Clients Happy
At Instone, we are very proud of our track record. Our advice to all small business owners is to become STP ready to avoid any fines or penalties in the future from the ATO. If you need a solution or you just want your system reviewed, we’d be happy to help by advising a suitable cost-effective solution that’s right for you and your business.
Here’s what one of our clients had to say
“I’m busy running my business so I needed someone who could look after my accounts while I looked after my business. Paula and her team were referred to me and from the start I was gobsmacked because they listened to what I needed and had the knowledge and skills to move my business into the 21st century.” Garry Higginson, GL Higginson P/L, Portland
Need help to get ready for STP? Talk to us at Instone
We’re here to help you through the STP process if you need it and to help you with any business, accounting, bookkeeping and tax needs you may have. Please find our enclosed brochure which gives you a bit of an overview of who we are and what we do, and you’ll find lots more information on our website at www.instone.com.au
Free, no-obligation consultation
We understand that changing accountants is a decision you don’t make lightly, which is why we’re happy to offer you a 30 minute consultation to have a chat about what you need and how we could help you. Either at our Portland office, or by phone or Skype.