Changes to Single Touch Payroll reporting: The 7 things you need to know
Single Touch Payroll is a way of sending tax and super information to the Australian Taxation Office (ATO) from your payroll or accounting software each time you pay your employees.
What are the changes?
- Legislation to extend Single Touch Payroll to include employers with 19 or less employees from 1 July 2019 was passed by parliament on 12 February 2019.
- The ATO understands the move to real-time digital reporting may be a big change for employers, especially small business, so the ATO will adopt a supportive, tailored approach to help them undertake this change.
- Small business employers will not be required to purchase commercial payroll software to report under STP. The ATO is working with software providers, including MYOB and Xero, to develop low and no-cost reporting solutions including simple payroll solutions, portals and mobile apps. For more information visit the ATO.
- The ATO will offer micro employers (1 to 4 employees) help to transition to STP and a number of alternative options – such as allowing those who rely on a registered tax or BAS agent to report quarterly for the first two years, rather than each time payroll is run.
- Small employers can start reporting any time from the 1 July start date to 30 September 2019. We will grant deferrals to any small employer who requests additional time to start STP reporting.
- There will be no penalties for mistakes, missed or late reports for the first year.
- The ATO will provide exemptions from STP reporting for employers experiencing hardship, or in areas with intermittent or no internet connection.
The Money Edge | Bundaberg