With Single Touch Payroll (STP) rolled out and essentially most businesses required to follow it, change is here. If you’re just starting a business having taken a few years off or are just now becoming compliant with STP, you likely have a lot of questions. Mostly, people want to know what is going to change now that they are STP compliant and how it differs from the old ways of payroll reporting. We have answers. Let’s take a look at some important differences between the two.
STP Reporting is Done in Real Time
Rather than running payroll and then reporting your payroll, tax, and super information to the ATO quarterly, the information is sent immediately. This is a process that is meant to save employers time, while also providing the ATO with the information they need in a more streamlined approach.
Software Makes It Easy, STP Technology
If you’re doing all your payroll by hand or with outdated software, you’re not going to like STP. The good news is that modern payroll solutions make it a whole lot easier to file and report financial information and can reduce the manual errors bound to occur. The ATO has a guide to help you determine what kind of software tools your business needs.
You Can Have Someone Help with your STP Reporting
If you aren’t a fan of crunching numbers, a registered tax or BAS agent can report your payroll data through STP for you. If you’re working with a registered payroll or bookkeeping service provider, they can also do this work for you but they must be qualified and registered. You can learn more about this from the ATO’s information sheet.
Switching to any new system is always challenging and can be confusing but with all of the facts, updating your processes and getting used to the new system is simple.
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