All employers must participate!
All other employers
- Must be reporting or granted a deferral before 30 September 2019
- Transition year until 30 June 2020
- ATO Approach is that no penalties will apply in the first year
Micro (1-4 employees) and disconnected employer concessions
- The law still applies requiring you to enter STP by 30 September 2019.
- ATO approach is that there will be a year of no penalties.
- Quarterly reporting by your Agent in alignment with your BAS lodgement is an option.
- Low cost payroll solutions are available.
** Anyone can elect to enter STP earlier than required **
SO what is Single Touch Payroll?
You submit payroll and superannuation data to the ATO each “PayEvent”. This could be weekly, fortnightly, monthly or whenever you pay.
A PayEvent is each time you pay someone and you should be generating a pay slip. Some of the data on the pay slip is now sent to the ATO:
- The year-to-date totals of gross wages, allowances, deductions and gross tax for each employee being paid.
- The year to date amount of Superannuation that has been accrued. The Superannuation Guarantee must be reported, other super can be reported.
- You will also report the W1 Gross Wages & W2 Gross Tax for each payrun (so that the ATO will eventually prefill these totals for the BAS period onto the BAS for employers who also report W1 & W2 on the BAS). Superannuation payment information is going to be sent to the ATO by the SuperFunds. This information will be used by the ATO to check you are paying.
What do you need to do?
Employers should streamline their payroll process by utilising a software solution. Establish the payroll system, or adopt STP reporting through your software.
Do you need help setting up Single Touch Payroll (STP)? Contact CJS Bookkeeping for assistance.