New ATO reporting
You might be wondering what the Government’s Single Touch Payroll (STP) is all about and how it might affect you. To help you, we’ve put together key points on what STP is, how it might impact you, and what you can do to prepare for the upcoming changes.
What is STP?
STP is a streamlined way for you to report your staff’s tax and super information to the Australian Taxation Office (ATO) each time you pay your staff. It is designed to simplify the reporting process for employers and must be done through an STP-enabled payroll solution.
Does it impact me?
On 1 July 2018, employers with 20 or more employees must adopt the new reporting process.
On 1 July 2019, employers with 19 or less employees will also join the change (subject to legislation being passed in parliament).
What do I need to do?
To help you get ready for the upcoming changes, we’ve put together three simple steps.
1. Review your headcount from 1 April 2018
Each employee working for you on 1 April 2018 is counted as one employee. This includes full-time, part-time, casual and any employees on leave or seasonal workers.
If you have 20 or more employees, you will be required to change to STP come 1 July 2018. If you have 19 or less employees, you will not need to make any changes just yet.
2. Speak to your payroll software provider
Check if your current software provider offers STP reporting, and if they are making updates for you. They may automatically provide an update to your existing software, or it may be an addition to your current software that you need to implement. If your current provider does not have or will not have a solution ready in time, you may need to find another that does.
3. Review your payroll processes
Make sure all your payroll information is up to date, including if you are paying your employees’ super correctly.
If you have chosen AustSafe Super as your default fund, make sure this is also set up in your payroll system. This will ensure any new employees who join your business and do not choose their super fund will easily be able to select your default super option.
Not an AustSafe Super default employer?
Find out more
Our team of Regional Managers are local and are available to help you with any of your super obligations. If you would like to have a chat about the upcoming changes and how they might affect you, or would like to organise a workplace visit, contact your local Regional Manager to arrange a time.
For more information on STP, visit the ATO’s website.
Source: Australian Taxation Office. Single Touch Payroll (2018). www.ato.gov.au/singletouchpayroll.
This editorial is general information only and does not take into account your individual objectives, financial situation or needs. You may also wish to seek the advice of a qualified financial planner. Please also read the relevant AustSafe Super Product Disclosure Statement (PDS) before making a decision in relation to the product available at austsafe.com.au which summarises important information about being a member of AustSafe Super.
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