From 1 July 2018, if you have 20 or more employees you’ll have new payroll and superannuation reporting obligations (smaller employers have an additional 12 months to get ready). These new obligations are mandatory and will require you to have approved STP Software so you can report your payroll and superannuation information to the ATO.
You will need to report the following on or before pay day;
- Payments to employees such as salaries and wages
- Pay as you go (PAYG) withholding
- Compulsory Super information
How to get ready for Single Touch Payroll
1. Do a headcount. To determine if you are required to report through STP you will need to do a headcount of employees on 1 April 2018. If you have 20 or more employees on that date you will need to report through STP. More information is available from the ATO here on ‘How to count your employees’.
2. Review your business processes to see if they can be updated. Make sure the right people in your business know about Single Touch Payroll – especially your payroll staff. For more information on what you need to check download the ATO’s Single Touch Payroll – Get ready checklist.
3. Update your payroll solution when it’s ready & start reporting. Find out if your current payroll solution is STP enabled or when it will become STP enabled. You can also ask a third party (like a payroll service provider) or MBA to report for you to the ATO using their Single Touch Payroll-enabled software. NOTE – Currently, none of the major software providers have STP enabled however MBA is tracking the implementation process and will provide an update in our next newsletter.
As a business owner now is the time to start preparing. At MBA we have the team to assist you in managing these changes and providing recommendations to ensure you have the best system to suit your needs. Do not hesitate to contact us should you wish to discuss any of the information in this article.