Single Touch Payroll requires every small business employing under 20 staff to be STP compliant, which will mean that you need to send the ATO a transaction each and every time employees are paid.
Good risk management practice would suggest that savvy small business owners insulate their businesses from these new compliance risks as soon as possible to be ready for the rest of 2019 and beyond.
Firstly, it would be wise to update all of your employees on the coming change to how payroll is reported. For example, advising them that personal income summaries will no longer be issued and that they can access this information via their myGov account will ensure a smooth transition for your staff.
Related to this will be ensuring anyone in your business who may have a role to play in the payroll function is fully aware of what STP is and what it will mean for your business. Even if you only have a few employees, raising awareness among key staff will encourage better understanding among your workforce.
Secondly, choose a payroll software provider approved by the ATO as STP compliant. The ATO has published a list of no-cost and low-cost solutions that will ensure small businesses are compliant from day one. To make your payroll process easier and faster, consider an online provider like ePayroll that was not only among the first six approved by the ATO, but also makes payroll easier to process on the go.
Finally, the beginning of STP is a timely opportunity to review the rest of your payroll affairs to ensure your business is compliant and efficient. While the focus for many employers will be on their STP tax obligations, it is clear that the Fair Work Ombudsman will also remain vigilant in ensuring things like Award compliance.
Alternatively, if you use a bookkeeper or other outsourced provider to manage some of the payroll legwork, engage with them early to ensure your obligations are met fully on your behalf.
Read more on getting ready for Single Touch Payroll (STP) via the related articles below.
Contact us if you would like to discuss STP compliant payroll software or, if all of this looks like too much trouble, talk to us about outsourcing your payroll – an easy solution for ensuring ongoing compliance with evolving legislation.