Not on board with Single Touch Payroll (STP) yet????

Did you know that there are 3.9 million small businesses contributing over $380 billion to the Australian Economy each year ?

Chances are you are one of them !

There are approximately 800,000 businesses employing over 3 million people ....

So you may have heard of Single Touch Payroll (STP) - an ATO requirement that has real time reporting on/when payments happen.

This does NOT mean a change to your obligations as an Employer under Fairwork legislation or Superannuation Guarantee provisions - instead it is designed to streamline the reporting process and provide visibility over your payroll.

There is a $2.8 billion superannuation guarantee gap - that is a lot of super NOT being paid.

Basically under STP Guidelines - the payroll you pay your employees is reported to the ATO when you pay them - not just at end of payroll year.

In addition - super information on what is owed is also reported.

This system has been in place for larger employers for some time now and 01/07/19 smaller employers with less than 19 employees must consider HOW they are going to report this information.

Good news - if you already use computerised accounting software - chances are - it is compliant

Here at KRS Consulting Group - we use and recommend Xero https://www.xero.com/au/why-xero/benefits/online-accounting/

The reasons are simple :

• Xero can manage payroll calculations
• Xero is STP ready
• Xero can collate the data required by the ATO including superannuation
• Xero can send this data to the ATO to ensure you comply with STP

There is a low cost Xero payroll solution available for $10 per month (currently 50% off for 6 months) - at $5 a month - that's the price of a coffee for automation, compliance and peace of mind.

BUT - payroll is a complex area of many laws intersecting and here at KRS Consulting Group - we see this as an opportunity to check in that you are meeting your obligations and have a best practice payroll set up. Mistakes in payroll can be costly so it pays to get the right advice.

After 30 Sept - you need to qualify for an exemption, deferral or concession to avoid being non compliant with STP.
If you employ you need to act now to ensure you have the appropriate measure in place.

Unsure what to do next ?

Be guided by your Tax Agent, Accountant, Bookkeeper or BAS Agent - they deal with the ATO regularly and will know what is right for your business !