What can you do to prepare for Single Touch Payroll?
Single Touch Payroll or STP is one of the biggest transformations taking place in organisations across Australia in 2018.
While there’s a lot of information out there about who the legislative change applies to, there’s a gap concerning what companies can do before July to be prepared for Single Touch Payroll. Don’t worry, we’ve got you covered.
Take action today
With nearly six months to get ready for the switch, employers should be prioritising training for employees and payroll staff. One example of this is the fact that pay as you go (PAYG) statement summaries will be a responsibility of the Australian federal government. Managers can help create a smooth transition by teaching personnel how to access the myGov portal to find everything they need.
Conduct a headcount before April 1, 2018.
Take the time to review payment information for employees. Ensure all calculations regarding income tax or bonuses are being done correctly, KPMG reports. If they aren’t, then quickly identify a way of fixing them before Single Touch Payroll is enacted.
Companies will also need to conduct a headcount of all employees – not just full-time personnel – to identify if they are what’s referred to as a substantial employer by April 1, 2018, according to the ATO. If your business has more than 20 staff members, it will need to be compliant with Single Touch Payroll by July 1, 2018.
Finally, if you’re still having trouble regarding the relationship your business will have with the Australian Taxation Office (ATO), consider meeting with experienced consultants. They can help you figure out if any changes are needed regarding superannuation, reporting to the ATO or if any organisational structure changes are required.
Be ready for July 1
The businesses most affected by Single Touch Payroll will be those who do not currently use payroll software. In this case, the clock is ticking to find a provider who can help them integrate an end-to-end payroll platform. Once done, most employer obligations will be covered through the system.
Companies that do currently have a payment platform in place will need to talk with their provider to ensure the software will be updated to be compliant with Single Touch Payroll. The ATO is still finalising documentation for vendors, as of publication.
Remember that as long as you are compliant with Single Touch Payroll by July 1, 2018, then you are also subject to a penalty exemption for missed reporting periods. This should give you some peace of mind as you tackle the project.