Single Touch Payroll is coming for small businesses
If you have any employees, (including yourself), or
You are self-employed as a PAYG earner,
Then you need to be ready for the changes from 1 July 2019.
Big changes are coming to the way your small business reports its employee tax and super obligations to the ATO.
The easiest option is using payroll or accounting software which offers Single Touch Payroll (STP).
The software means Employers send their employees’ tax and super information to the ATO each time they run their payroll and pay their employees.
The new system was launched last year for employers with 20 or more employees, but following legislation passed on 12 February 2019, it has now been agreed that STP will apply to all smaller employers (those with less than 20 employees) from 1 July 2019.
No matter how few staff you employ (even one or two), the STP rules will still impact you, even if you don’t currently use a payroll software package.
To help small employers, the ATO is preparing a number of measures to ease the burden for small employers still preparing payrolls manually, including asking software developers to build low-cost STP solutions at or below $10 per month for micro employers (4 or less employees). This includes simple payroll software, mobile phone apps and portals. They also promise exemptions to businesses with no or limited internet connectivity and an option for employers with up to 4 employees to allow accountants to report quarterly on your behalf (rather than at the time of each payroll).
Nevertheless, many of the assistance measures for small businesses are still lacking in specific detail and considering the change comes into force in just a few months, you need to be prepared if you are employing anyone.
Make an appointment and come into to see us to discuss your options.