Were you aware that the Government legislated all small business to be ATO Single Touch Payroll (STP) compliant?
Here's what you need to know.
Back on July 1st, 2019, legislation was introduced that made it compulsory for all businesses with 19 or less employees to become STP compliant. The ATO would enforce this legislation.
All businesses with 20 or more employees should already be reporting through STP. However, from July 1st, 2020, the ATO has indicated that fines may apply to non-compliant businesses.
What is STP?
Single Touch Payroll (STP), is a new way of reporting tax and superannuation information to the ATO. With STP, your business reports employees' payroll information, inclusive of salaries and wages, pay as you go (PAYG) withholding and superannuation, each time you pay your employees through an STP-enabled software.
Small Businesses are now compelled to set up a payroll solution that is ATO approved, and STP enabled.
There are several benefits to STP.
For the employer:
- It streamlines the payroll information for the ATO
- Also, employers will no longer need to create annual payment summary for employees
- Saving valuable time
For the employee:
- They no longer need to wait for Payment Summaries at the end of Financial Year
- The ATO uses the STP reported information as the sole record of salary/wages paid, taxes collected, and superannuation contributed
- This information is available to employees, in near-real-time, via their MyGov account
So, the message is, if your business is not STP complaint yet, you will need to get a move.
Easy Payslip ticks all the right boxes; it is a simple, low cost, STP compliant and an ATO approved software solution.
If you're looking for an easy solution for your business that you can manage from your mobile phone or computer, try our solution Easy Payslip! We're based in Australia, and our app and website are specifically designed for Australian small business owners.
You can give us a call on 02 8084 9222 if you have any questions and we'd be happy to chat. Or feel free to go ahead and sign up for a 30 day free trial on our app or website.
Also, two related articles: