Last week Parliament officially passed legislation to extend Single Touch Payroll (STP) to include all small employers with fewer than 20 employees from 01 July 2019. Employers with 20 or more employees have been using STP since July 2018. The passing of this legislation was no surprise and just a formality of extending STP for all employers.
What is STP?
If you are unsure what STP is, see our blog here http://nimbus.vocadata.com.au/zedpayroll.com.au/blog-single-touch-payroll/
Important things to know:
• The ATO 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.
What should small employers do?
Get ready now. Don’t wait until June to start looking to implement your STP solution. If you are unsure how to set it up, talk to someone. Setting up STP will be quick and easy in most cases but it is important that you set it up correctly. If it is not setup correctly, it may cost you a lot of time to correct, and employee’s end of year figures they report on their tax returns may be wrong.
STP does not need to be hard or time consuming. Set it up correctly the first time and each time you do a pay run, it is just an extra click of the button in your payroll software to report the figures to the ATO online.
Feel free to contact us at Zed Payroll if you need any help or have any questions.
Trevor Cairney CPA