If you run a spa, clinic, or salon, you most likely fall under the ‘small business’ category. We know how tedious admin work can be, but it’s part of every successful business. Since July 1 this year, small employers with 19 or less employees are required to report through the ATO’s so called ‘Single Touch Payroll’ (STP). We had a chat to the GM of Workforce Guardian, Charles Watson, who explained everything you need to do before September 30 if you haven’t already:
STP is a method of reporting tax and superannuation information to the ATO. As an employer you are required to report your employees’ payroll information, such as salaries and wages, pay as you go (PAYG) withholding and superannuation information to the ATO each time you pay them. Using STP, an organisation’s payroll or accounting software sends employee tax and super information directly to the Australian Tax Office (ATO) each payday. This streamlines the process of reporting to the ATO.
You will need to make sure your current payroll software is updated by your digital service provider (DSP) to offer STP reporting, or choose payroll software that is STP-enabled. The requirements and commencement can vary depending upon the size of the business:
- Small employers with 19 or less employees – need to commence reporting through STP any time before 30 September 2019.
- Micro employers with less than four employees: are required to report, but have additional options including using low cost or no cost products, or quarterly reporting through their registered tax or BAS agent. This option will be available until 30 June 2021. There are a range of commercially available low-cost or no-cost STP software options available. These can be viewed at the ATO website.
- Large employers with 20 or more employees – should already be reporting through STP since 1 April 2018.
Employers in remote areas or with poor internet coverage may apply to the ATO for an exemption from such reporting requirements.
If you haven’t already sorted this issue you should speak with your payroll company, bookkeeper, accountant or the ATO directly if you have any queries about STP and your business.