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Is your business prepared for Single Touch Payroll?

Is your business ready for Single Touch Payroll?

What is Single Touch Payroll?

Single Touch Payroll, also known as STP or one touch payroll, is an ATO initiative that has been phased in over the past couple of years.

Basically, it’s a gentle, not so gentle way of ‘encouraging’ business owners to enter the electronic age and report all payments made to employees.

What does Single Touch Payroll mean for my business?

The introduction of Single Touch Payroll means as an employer, you will be required to report the following each time you pay an employee;

  • wages
  • salaries,
  • PAYG withholdings
  • superannuation

 

We still use spreadsheets, what does Single Touch Payroll mean for my business?

For businesses still using excel spreadsheets and paper to track transactions, the change may take more effort.

Single Touch Payroll means the end to paper-based reporting and moving to cloud-based accounting software and automated online reporting practices.

If your business still uses excel or hardcopy financial reporting methods, it’s important to be in touch with your current accountant or contact the CVW Accounting team today.

There are clear steps to take as well as training available for you and any staff working with your current financial reporting processes.

 

We use accounting software, what does Single Touch Payroll mean for our business?

If your business already uses accounting software the transition to STP will be straightforward.

The main change will be that instead of only reporting payroll at the end of the financial year, your business must submit a report every pay cycle.

For some businesses this may involve a simple addition to your software package. Or perhaps migrating to another user-friendly, cloud-based system.

Do you have questions about how to start using payroll or accounting software with STP reporting? Touch base with the CVW Accounting team or drop in for a cuppa.

When do we need to start Single Touching Payroll reporting?

From 1 July 2018, Single Touch Payroll was introduced for employers with 20 or more employees.

From 1 July 2019, all Australian small business owners will be required to report payroll information electronically to the ATO.

How do I prepare my business for Single Touch Payroll?

The STP introduction date of 1 July 2019 means preparation need to start now.

For businesses already using accounting software users, your system may already be compliant. Make sure your staff are confident they have all the knowledge and training they need to be up-to-date with the coming changes.

If you are still using spreadsheets or desktop software, you need to be thinking about which payroll software to purchase.

Keep in mind, the end of financial year is a busy time. Set aside time in your calendar now to make sure you, your staff and your business are Single Touch Payroll ready.

If you have any questions, contact us at CVW Accounting – we are happy to help.

 

Do you want more information? Check out the ATO website or click here.

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