IN THIS ISSUE: March 2019
STP – Single Touch Payroll and what it means for your business
As mentioned in the Budget Newsletter STP is mandatory from 1 July 2019
Regardless of the number of employees electronic reporting of payroll and pay run cycles will be required
This means each and every pay run is reported in real time to ATO.
If your business uses Myob, AccountRight etc or Xero or similar this software will be STP enabled. STP registration and authorisation will be required and this occurs within the software. We can assist you with this.
For Directors using the ‘drawings’ method of paying yourself- these payments ‘taxable’ will become part of the STP process.
Each operators situation is different, a solution to manage this requirement will be customised to suit by bennetts tax & bas service in order to assist in your compliance and training for this new process.
If your small business doesn’t warrant the use of electronic software to keep track of your income & expenses there are a number of software providers offering a basic electronic payroll function bit of software for $10-20 per month. Please contact this office to discuss which one may be best suited to your business needs.
On a positive note, the electronic reporting to ATO of PAYG(W) tax will mean the end of annual payment summaries (group certificates) so one less compliance issue at the end of a financial year.
Here is a link to ATO for further information (ignore references to 20 or more employees at 1 July 2018 as this requirement is super ceded by the requirement of all employers from 1 July 2019):
Click here: STP information
Now is a good time to assess where your business sits in terms of a possible tax liability or refund in June. Make an appointment to review your businesses trading for the year and if any corrective actions are required pre- June 30th.
As always, any queries regarding this topic or any other, please contact Diane Bennett by phone or email.
Look out for our new look newsletter with the latest information and tax developments – coming soon!