Applicable to ALL employers from 1 July 2019

On 1 July 2018, the Australian Tax Office (ATO) introduced a new process to streamline the way employers report payroll information. Single Touch Payroll (STP) currently provides a reporting framework for larger employers with 20 or more employees to deliver payroll and superannuation information to the ATO earlier than that currently applies under the PAYG withholding ordinary provisions. This means an employer paying weekly wages will report gross wages, tax withheld and superannuation contributions to the ATO every week when the employee is paid.

Proposals to roll out the rules to all employers are now law.  This means that all Australian businesses will be required to comply with STP reporting from 1 July 2019, bringing over 700,000 businesses into the regime.

KEY POINTS :

• ATO is working with software providers to develop low and no-cost reporting solutions. A full list of the supported solutions can be found at ato.gov.au/stpsolutions
• Small employers (5-19 employees) will be given a grace period of until 30 September 2019 to be submitting live pay data
• Deferrals and exceptions are available for employers experiencing hardship or in areas with intermittent or no internet connection
• Micro employers (1-4 employees) will have time to transition and as your registered Tax Agent, we will be able to report quarterly for the first 2 years
• If your business currently does not use payroll software, now is the time to act. Low-cost STP solutions such as simple payroll software, mobile phone apps and portals are currently in development to help smaller employers deal with the changes. The ATO has a requirement that such solutions cost $10 or less per month. It is not mandatory that all accounting has to move to an electronic solution; at this time it is just payroll.

If you have any concerns or would like more information on Single Touch Payroll, please speak to your Brentnalls NSW team member.