On 13th Feb 2019, Commissioner Chris Jordan released a statement in regards to Single Touch Payroll (STP) that will be a significant change to employers, especially small businesses.
Legislation has been passed to extend STP to include all employers from 1/7/2019.
STP will require you to have your payroll transaction data transferred to the ATO each time your employees are paid. This may require you to use a software solution that will transmit the data to and from the ATO on your behalf. That means each pay cycle you have to 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.
This will help ensure all Australians get their full superannuation entitlements, give greater transparency and help ensure a level playing field for small business. This initiative is also an important step in streamlining business reporting and keeping pace with the digital age.
ATO has confirmed that they will conduct a flexible, reasonable and pragmatic approach to STP. In particular, ATO announced that:
- We will offer micro employers (1 to 4 employees) help to transition to STP and a number of alternative options – such as allowing those who rely on a registered tax or BAS agent to report quarterly for the first two years, rather than each time payroll is run.
- Small employers can start reporting any time from the 1 July start date to 30 September 2019. We will grant deferrals to any small employer who requests additional time to start STP reporting.
- There will be no penalties for mistakes, missed or late reports for the first year.
- We will provide exemptions from STP reporting for employers experiencing hardship, or in areas with intermittent or no internet connection.
Get Ready to comply with STP now!
Need help ? Please contact us at (02) 4229 5133 or email: firstname.lastname@example.org.
Thanks & Kind Regards,
Teresa Tran & Associates