Single Touch Payroll exemption

From 1 July 2018 employers with 20 or more employees will be required to start using Single Touch Payroll (STP). The head count needs to have been performed as at 1 April 2018.

Employers with less than 20 employees don’t have to do anything yet, however they can choose to report through STP if they use payroll software that is STP-enabled.

Practitioners with clients who are not ready for STP will need to take urgent action. Broadly, the steps required to ensure a business is ready for STP are:

  • Ask the payroll software provider if the software will be updated for STP, and what needs to be done by the business.
  • Ask the software provider if the software version the business is using has a later start date from the ATO (a deferral).
  • If the software has a deferral and the business will not be ready by that date, ask the ATO for a deferral for that employer.
  • If the software will be ready by 1 July, but the business needs more time, ask the ATO for an employer deferral.

About Single Touch Payroll

Single Touch Payroll (STP) aligns your reporting obligations to your payroll processes.

You will report to us each time you pay your employees. Your pay cycle does not need to change. You can continue to pay your employees weekly, fortnightly or monthly.

The information you send us will include your employees’ salaries and wages, allowances, deductions (for example, workplace giving) and other payments, pay as you go (PAYG) withholding and superannuation information.

To find out more about the exemption of Single Touch Payroll, come and speak to us Tax Ideas Accountants & Advisershttps://taxideas.com.au/booking/   Tel: (02) 8318 1545

Posted in News & Events, Tax Updates.