Blog Layout

Single touch payroll: are you ready?
Liz Gibbs • June 20, 2018

Single Touch Payroll (STP) is coming for businesses, it aligns your reporting obligations to the ATO to your payroll processes. You do not need to change anything you do now, you can still pay your employees on a weekly, fortnightly, or monthly cycle. If you're running a business with 20 or more employees, what you will need to do before 1 July 2018 is to check with your payroll software provider for an update that will send all the relevant information automatically to the ATO. If you're a business with 19 employees or less, you will not have to report through STP until 1 July 2019.

If you run a business, you've probably heard a lot about Single Touch Payroll (STP) recently, so what is it and how does it affect you? Basically, STP aligns your reporting obligations to the ATO to your payroll processes. Each pay cycle you send information to the ATO including employees' salaries and wages, allowances, deductions, other payments (ie termination of employment, unused leave or parental leave pay), PAYG withholding and superannuation.

You do not need to change anything you do now, you can still pay your employees on a weekly, fortnightly, or monthly cycle. If you're running a business with 20 or more employees, what you will need to do before 1 July 2018 is to check with your payroll software provider for an update that will send all the relevant information automatically to the ATO.

To find out if you're running a business with 20 or more employees, for STP purposes, you need to do a headcount of your employees as at 1 April 2018. You will need to include, full-time employees, part-time employees, casual employees, employees based overseas, any employees absent or on leave (whether it be paid or unpaid), and seasonal workers, on the payroll on 1 April and that worked any time during March 2018. Directors and officeholders however are not included in this headcount as they are not considered to be "employees" within the common law meaning of the term.

As you can see, under STP, many businesses with less than 20 full-time equivalent employees could be caught under the system, therefore you need to be aware of your business' obligations. When you contact your payroll software provider, if the update to STP is ready, you will need to start reporting through STP from 1 July 2018 (provided you're an employer with 20 or more employees). However, a deferral may be applied for with the ATO if you think your business won't be ready.

Some payroll software providers have already applied for more time to update their products, and if your business' payroll software provider has a deferred start date, you do not need to apply for another deferral. If your business does not or will not have access to a payroll solution that is STP-ready you can ask a third party such as a registered agent or a payroll service provider to report STP data on your behalf.

If you've done the headcount and discover that you're an employer with 19 or less employees, you can breathe a sigh of relief, STP isn't due to start for you until 1 July 2019, but you can choose to report through STP before that date if your business and the software are both ready. As an administrative concession, during the first 12 months of a business reporting through STP, it will be exempt from administrative penalties for failing to report on time; unless the ATO has first given written notice advising that a failure to report on time in the future may attract a penalty.

Need help?

If you think your business won't be ready and need to apply for a deferral for STP, we can support you in the transition to get you more time to comply with the requirements. If you're a business that employs seasonal or casual workers for short time during peak periods, you may not need to comply with STP obligations even if you meet the headcount under certain circumstances, we can help you figure out what to do.

Call us at Robert Goodman Accountants on 07 3289 1700 or email us at 
reception@rgoodman.com.au.   © Copyright 2018. All rights reserved. Source: Thomson Reuters. 
Brought to you by Robert Goodman Accountants.
 
Office open
By Liz Gibbs March 10, 2025
With thanks to all Energex and Emergency services Crew, our electricity has been reconnected and our office is open from today 11 March. We hope you and your loved ones are safe and well following cyclone Alfred. These past few days have been challenging for many, and our thoughts are with everyone affected.
By Liz Gibbs March 10, 2025
Due to a power outage affecting the entire Samford area, the RGA Practice will be operating remotely today, 10 March, until electricity is restored. Please be assured that our team remains available and can be reached at 07 3289 1700. We appreciate your understanding and support during this time. Stay safe, and we look forward to seeing you soon.
Cyclone Alfred
By Liz Gibbs March 5, 2025
As Tropical Cyclone Alfred approaches, we want to remind everyone to take necessary precautions and ensure their safety. We have received some important information that we believe is crucial to share with you to help you prepare for the severe weather conditions ahead.
Work Health and Safety (Sexual Harassment) Amendment Regulation 2024
By Liz Gibbs February 26, 2025
In a significant move to combat workplace sexual harassment, Amendments to the Work Health and Safety Regulation 2011 (as per the Work Health and Safety (Sexual Harassment) Amendment Regulation 2024) will soon commence on 1 March 2025.
By Liz Gibbs February 25, 2025
The amount of money that can be transferred to a tax-free retirement account will increase to $2m on 1 July 2025.
What happens to your super when you die?
By Liz Gibbs February 25, 2025
The Government has announced its intention to introduce mandatory standards for large superannuation funds to, amongst other things, deliver timely and compassionate handling of death benefits. Do we have a problem with paying out super when a member dies?
By Liz Gibbs February 25, 2025
If credit card surcharges are banned in other countries, why not Australia? We look at the surcharge debate and the payment system complexity that has brought us to this point. In the United Kingdom, consumer credit and debit card surcharges have been banned since 2018. In Europe, all except American Express and Diners Club consumer surcharges are banned. And in Australia, there is a push to follow suit. But, is the issue as simple as it seems?
Babyboomer wealth
By Liz Gibbs February 25, 2025
“Succession planning, and the tax risks associated with it, is our number one focus in 2025. In recent years we’ve observed an increase in reorganisations that appear to be connected to succession planning.” ATO Private Wealth Deputy Commissioner Louise Clarke.
Penalty for False R&D claims
By Liz Gibbs February 25, 2025
A joint investigation involving the ATO found that, between 2014 and 2017, a Sydney business coach promoted unlawful tax schemes encouraging clients to lodge over-inflated, inaccurate or unsubstantiated research and development ('R&D') tax incentive claims
SMSF lodgement due dates
By Liz Gibbs February 25, 2025
All trustees of SMSFs with assets (including super contributions or any other investments) as at 30 June 2024 need to lodge an SMSF annual return ('SAR') for the 2023/24 financial year.
More Posts
Share by: