Single Touch Payroll Updates! Employers with 19 or less employees, take note!
What is Single Touch Payroll (STP)?
STP is a new way for employers to report their employees’ earnings, withholding & superannuation information directly to the ATO.
This has been mandatory for businesses employing more than 19 employees since 1 July 2018.
The Bill proposing to extend Single Touch Payroll (STP) to employers with 19 or less employees from 1 July 2019 has been passed by the Senate and will become law once passed by the House Of Representatives.
Do you employ 19 or less employees? If so, read on!
What does this mean for you?
If you are already using a software provider that supports STP, you can start STP reporting should you wish to do so.
The ATO won’t force employers with 19 or less employees to purchase payroll software if they are not currently using it. Instead, different STP reporting options will be available to help small employers by 1 July 2019.
The ATO have asked software developers to build low-cost STP solutions that are required to be affordable (costing less than $10 per month) which are easy to use and some may even be mobile (mobile phone apps).
Micro employers (1-4 employees) will also have some alternate options, such as STP reporting on a quarterly basis through a Tax/BAS agent.
For businesses that have no internet connection or have an unreliable connection, they can request an exemption from the ATO.
The ATO will be releasing updated information and we will let you know how this affects you in due course. So watch this space!
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