Single Touch Payroll – Have You Missed the Deadline?
The Single Touch Payroll (STP) deadline – 30th September 2019, has now passed for small employers (those with 19 or less employees). If you’ve missed the deadline, take a deep breath – it’s not too late to get compliant!
STP became mandatory from 1st July 2019 for small employers, with the ATO providing a three month transition period ending on the 30th September 2019, giving employers plenty of time to get ready. Presently, the ATO has not indicated that they will begin issuing penalties for small employers if they are late to engage with the ATO for STP, however, it is crucial that employers make the transition to STP as soon as possible.
A Quick recap on STP
If you’ve missed the memo, let’s get you up to speed. STP is an initiative designed by the ATO to streamline the reporting process and ensure employers are complying with their payment obligations. Provided you’re doing the right thing by your employees, there’s nothing to worry about. STP is designed to make your processes more efficient, giving you more time to focus on what you do best.
STP works by sending tax and super information to the ATO via your STP-enabled payroll or accounting software as you run your payroll. You run your payroll, make payments and give employees a payslip as usual, and your STP-enabled software will send the ATO a report including all the information they need from you, including salaries and wages, PAYG withholding and super liability information. For more information on the ins and outs of STP, refer to our previous article here.
Help! I missed the deadline
If you’ve missed the boat on STP reporting, fear not – there are a number of options still available to you, but you need to act fast with the assistance of a trusted professional. You can start reporting now, request a deferral or you may be able to work with your registered tax agent to report quarterly (if eligible).
1. Start reporting now
If you’re already using payroll software that is STP-enabled, you can start reporting straight away. If you’re unsure how, contact us for assistance.
2. Apply for more time to get ready
If you’ve missed the deadline, don’t put your head in the sand! If you’re unable to start reporting immediately, you’ll need to request a deferral without delay. You can find more information here or contact us today and we can help.
3. Consider concessional reporting options
There are also concessions available, for example for those without a reliable internet connection, those with 1-4 employees and seasonal or intermittent workers. Find out more here.
To help small employers better understand their options, the ATO has created a range of factsheets and interactive quizzes to help employers determine their next step, which can be found at ato.gov.au/stp.
With a little bit of preparation and knowledge, most employers are seamlessly able to integrate STP into their existing management processes. After all, businesses have long been using systems to pay their employees. This initiative simply means that the ATO will be provided with the same information.
The ATO has reassured small employers that they will be flexible, reasonable and pragmatic in the roll-out of STP, so provided you take action immediately, there is unlikely to be any penalty for missing the deadline right now – but you must act quickly to rectify! Tradies Accountant are experts in accounting for small employers, so don’t hesitate to contact the team straight away, make sure you’re compliant and get back to business.
Tradies Accountant can be contacted on the below details :
1300 775 048
DISCLAIMER: All information provided in this publication is of a general nature only and is not intended to be financial advice.