Single Touch Payroll (STP) will change the way employers report their employee’s tax and superannuation information to the ATO.

You will need to ensure your accounting software, or payroll software offers STP so that it sends your employees’ tax and superannuation information to the ATO each time you run or process payroll and pay employees.

Employers with 19 or less employees will have STP reporting obligations applicable from 1 July 2019, although there is a 3-month extension to allow software providers to catch up and provide working solutions to comply with reporting obligations.

If you are not currently using established accounting packages such as MYOB or Xero, and a number of low-cost STP solutions will be available at or below $10 per month for micro employers (1 – 4 employees).

Please ensure your software is set up and connected with the ATO to enable STP reporting. You should start this process from at least 1 April 2019 to ensure you are ready in time.

If you make a mistake in a pay run, i.e. you over or under-pay an employee, just fix it as you normally would.  This corrects the employee’s YTD amounts, which will be sent to the ATO the next time you declare a pay run.

If you would like more information or to make an appointment with an experienced payroll accountant in Melbourne, contact us today.