Getting organised for Single Touch Payroll reporting
You may recall seeing something about Single Touch Payroll (STP) in your inbox a month or so ago. Maybe you completed a head count or maybe you might have put it off for a few more weeks. Well we’re back to remind you that crunch time is coming and there’s no more putting it off for those of you that have 20+ employees at 1 April 2018.
So let’s get down to specifics to ensure its smooth sailing for everyone. If you haven’t already you need to perform your headcount of employees at 1 April 2018 to find out if you’re in the 20+ employee boat.
When counting employees do not include the following:
- employees who ceased employment before1 April
- casual employees who did not work in March
- independent contractors
- labour hire staff supplied by a third party
- company directors
After you’ve done this you need to ensure that:
- Your employees are being paid correctly;
- Super entitlements are being calculated correctly; and
- Employee details such as addresses, names and date of birth are correct.
Once you’re happy with all the details in your system you then need to setup a Business Portal AUSkey to enable your software provider to send each pay run from 1 July 2018 directly to the ATO. An AUSkey can be set up here. You also need to notify the ATO through the Portal if you’ll be using STP and the Provider you’ll be reporting with i.e. MYOB, Xero etc.
Okay so you’ve set those up now and are happy with everything, what’s next? Not a great deal really. Payroll will essentially run as normal when processing just with one minor additional step which is as simple as clicking the button to report to the ATO, and your software will do the rest. For detailed step by step instructions for Xero go here, or for MYOB here.
What this means for you is that come June 2019 you won’t need to do Group Certificates for employees. This is because for every pay run you complete it is reported to the ATO directly and the ATO keep a running balance in each of your employees MyGov accounts of how much they’ve earned to date, tax paid and superannuation they are entitled to.
As mentioned earlier if you’re in the 20+ employee boat you need to be ready by 1 July 2018, if you don’t think this is possible or need some guidance please get in touch with us and we will work with you to ensure you’re ready!
For further reading regarding STP please visit the ATO website here
Author: Jessica Pol