Legislation passed the Senate to roll out single touch payroll (STP) to Australian businesses with 19 or fewer employees.
Businesses will need to be complying with STP reporting by July 1 2019, which means there’s just over six months to get on board.
The new STP requirements have been said to be the biggest compliance undertaking since the GST was introduced.
The team at Bloom can set up Xero payroll to ensure your business is STP compliant by the new financial year.
What is single touch payroll?
Under the new legislation, employers will be required to report their payroll data to the Australian Tax Office (ATO) every time they pay their employees.
This real-time payroll reporting method will eliminate the need for Pay-As-You-Go withholding activity statements to be lodged throughout the year.
All wages, deductions, superannuation information and other salary-related datawill instead be reported with each payroll run.
How you can report
Digital connectivity is becoming a necessary part of running a business in Australia and STP reporting is going to be relatively simple for businesses with digital payroll software, such as Xero.
Businesses without digital software will need to comply by manually filing business activity statements with the ATO.
Manual STP reporting will be time consuming and some say could pose security risks with personal details being transferred via mail.
Where possible, Bloom encourages businesses to get on board with digital payroll software and recommends Xero for its simple, streamlined capabilities.
Where to go for help
STP was initially rolled out in July this year to businesses with more than 19 employees. That meant 45,000 Australian businesses were the test drivers of the new requirements, and the rollout was less than smooth.
Under the new changes, a further 730,000 businesses will have to comply.
Those uncertain about what the new legislation means for their business, and in need of help setting up payroll in preparation for July 1, should contact Bloom Accounting Services.
Dallas and his team can ensure your business makes a smooth transition to single touch payroll in 2019.