With mandatory Single Touch Payroll (STP) reporting coming into effect from 1 July 2019, business owners should be aware that this will result in increased transparency and access to information for the Tax Office, and your employees.
From 1 July 2019, STP will require all employers to report Gross Wages, PAYG and Superannuation Guarantee Charge to the ATO each time they pay their employees via STP-enabled software.
Superannuation Funds will now be reporting to the ATO each time they receive superannuation contributions for them. The ATO has invested heavily in technology to cross-reference this information, and any anomalies between reporting and payment, will be quickly picked up by the ATO, with ‘please explain’ and reminder messages being sent automatically to employer inboxes and devices.
Employees will also have real-time visibility of all this information via their MyGov account, and shortfalls or non-payment of Superannuation could see them taking up issue of non-payment directly with their employers.
If you are currently behind in your Superannuation Guarantee obligations or struggle to keep up to date from time to time, cashflow management and business budgeting, forecasting and reporting are becoming increasingly important.
If you don’t have robust accounting systems to report issues in real-time, you could be getting yourself into a lot of trouble. Embrace cloud accounting and real-time reporting to help you understand and manage your business, and meet your reporting and payment obligations.
We can provide proactive business accounting advice for most sized businesses in Melbourne. Contact us if you would like to learn more about our services, including a shift to cloud-based accounting.