Small businesses already face a variety of challenges; remaining in compliance with the law being a significant one.  Lately, you’ve probably heard about Single Touch Payroll (or STP for short) and being compliant with this new reporting system.  Are you ready for the important compliance dates?  Let’s take a closer look.

What is Single Touch Payroll?

According to the Australian Taxation Office, Single Touch Payroll is a process where a small business sends their tax and super information directly to the ATO using their tax or payroll software.  It’s a process that is designed to make things as seamless as possible and streamlines the reporting process, allowing employers to provide this information to the government every month.

Single Touch Payroll was first rolled out as a requirement for employers with 20 or more employees but as of 1 July 2019, all employers must be Single Touch Payroll compliant.

Your Payroll Obligations as a Business

You don’t want to get on the wrong side of compliance when it comes to any financial law. Protect your business by understanding what you need to do and when you need to do it by.

If you already have an existing online payroll system, complying with STP is relatively easy. However, if you’re still using paper forms for payroll reporting, you’ll need to modernise your system.

For deadlines, most have already passed, but to recap with information from the ATO directly:

Micro Employers (1-4 employees): Until 30 June 2021, micro employers can continue reporting quarterly while they grow and work to put a system in place.

Small Employers (5-19 employees): Although not all employers will start reporting at the same time, you have a few options.  You can start reporting now, seek an extension while you get your system in place, or ask for exemption if you meet the ATO’s qualifications.

Employers with 20 or more employees: If you have 20 or more employees, STP started back in July of 2018 and you should be complying with it already.

Contact us if you need help!