Single Touch Payroll or STP will start this 1st of July, 2018 for companies with 20 or more employees but while these clients can be easily identified, only about 5% say that STP has been discussed with them. The Australian Tax Office is changing the way employees will receive their payroll and superannuation data through STP and employers have to understand how to properly navigate these new obligations. Seek advice from Chan & Naylor accountants near you.
Through STP, the Australian tax system could be more efficient, smarter and more automated. When STP becomes fully online, employers no longer have to provide annual pay (PAYG) summaries to their employees or perform annual reconciliation to the ATO. This means less admin and compliance overhead. The STP will also allow the ATO to pre-fill the BAS PAYG amount to maintain it accurately on the employer’s behalf.
The ATO’s myGov portal will also be updated with the employee’s total year to date salary, PAYG withholding amounts and super guarantee contributions. They will have access to information in a timely manner. Employees can also complete TFN Declarations and Super Choice nominations online. ATO will be able to monitor employers struggling to meet their PAYG withholding and super obligation, allowing them to intervene early to help those falling behind.
Appointing a single Touch Payroll business-driven expert (rather than an IT expert) within an organization may be a good idea. It is also best to upgrade and review your requirements now so you will have time to review your options before implementation. Find out if your business systems meet the requirements and if there are time-consuming processes that you could automate. You can also help your employees register on myGov and ATO correctly.
By 1 July 2018, you can choose to upgrade to a Single Touch Payroll compliant solution from your existing payroll software provider or a new payroll software provider OR stay with your non-compliant payroll solution and apply for an exemption or deferral from the ATO. The ATO may grant an exemption from STP reporting for those who are located in rural areas with no reliable internet connection or those who have 20 or more employees only for a short period of the income year (ie. Peak season)
The ATO may also defer the start date for those whose payroll solution will not be ready for STP reporting by 1 July 2018, those who have entered administration or liquidation and those impacted by a natural disaster or circumstance outside their control.
If you would like to know more about single touch payroll and how we can lodge on your behalf, you can click here to know more about Chan & Naylor services. You can leave your details here and Chan & Naylor Accountants near you can schedule you for a free consultation. We’ll contact you to explain more.
Whether you are a beginner, seasoned investor or business owner, our property and business tax accountants can give you guidance to maximise the financial areas of your life. We can also give you an integrated and tailored solution for your superannuation, taxation, property investment, asset protection, estate planning and more.
Chan & Naylor Group has national offices in Brisbane and Capalaba in Queensland, Melbourne and Moonee Ponds in Victoria, East Perth in Western Australia, and South West Sydney, Parramatta, Pymble, North Sydney, and Sydney in New South Wales.