Single touch payroll: an easy to read summary
Single touch payroll is the most significant change to government systems since the census in 2016, and we all know how that panned out, a total disaster.
If you haven’t been keeping up to speed with what’s new, here is my quick summary to help you transition through the change:
- Employers will report the amount of PAYG withholding and the amount of superannuation contributions to the ATO at the time of payroll processing.
- PAYG will still be included on your monthly IAS or Quarterly BAS, the lodgment and payment timeframes will remain the same.
- Superannuation will need to be reported and paid to employee super funds by the 28th of the next month. This has always been the case.
Until now the ATO has not tracked the timing of employee super payments, and with $32 Billion in unpaid superannuation entailments the ATO is cracking down on those employers who don’t pay.
It's supposed to level the playing field for small business, and in today's economy; where lots of our clients are competing for NIL margin work, I encourage any initiative that’s will eventually weed out the cowboys.
The payment of superannuation has never been easier. Xero provides its own auto super clearing house. We encourage monthly super payments for all our clients. However, there is the opportunity to pay the super straight after each pay run.
Your Time Frame
- From 1st July all employers who have 20 employees will need to register for STP, Xero will present subscribers meeting these criteria a pop-up window providing instructions to register.
- Over the next 12 months, STP will be rolled out to all employers, by 1st July 2019 every Australian business will need to be registered for STP
Anything that includes in a sentence ‘ATO’ and ‘new updates’ can seem scary. I’m here to tell you not to worry. This is a relatively straightforward update that is intended to protect you and your employees. It’s something to be embraced. However, if you still have some fear around the notion of Single Touch Payroll then give us a call. KHB staff and I are always happy to chat with our clients through any changes that impacts them. The key here is to ask the experts when in doubt and, lucky for you, we are always very happy and super keen to help!!