In a previous newsletter we provided information on Single Touch Payroll (STP) and what it meant for businesses. For those businesses who employ more than 20 employees, STP has now come into effect. For businesses with less than 20 employees, you will have until 1 July 2019 to become compliant. So what do you need to do?
If you do have more than 20 employees you now have to report to the ATO each time you pay your employees. The easiest way to do this is via your bookkeeping or payroll software. So if you haven't already, we would highly recommend that you upgrade to the latest online version of your software now! This is obviously a major change in the way software communicates directly to the ATO so understandably not all software companies have met the timeframes for having this functionality available. However, most of the big players have been covered by an ATO deferral giving them some extra time to come on board without clients being penalised.
The majority of our clients use Xero or MYOB to process their payroll and both of these providers are working through a roll out plan to get those larger employers STP compliant. Both of these products have a process in place to set up STP on your file. All require an 'opt in' procedure - STP won't be automatically activated with any updates. However there are slightly different procedures in each case.
If you are a Xero user, click here for instructions on how to opt in. Xero is planning a rollout of this between September and December. If you have more than 20 employees, you will be prompted to make the switch when the rollout reaches your file. Here's some FAQ regarding this process.
If you are a MYOB AccountRight 2018.2 or MYOB Essentials user this is available now - click here for instructions on what you need to do.
If you have any questions about STP or getting set up, please contact our office.