Each time employers pay their employees single touch payroll (STP) helps them to report their employees’ salaries and wages, their withholding on pay as you go, and give information to the ATO. Following legislation that was passed in February, employers with 19 employees or less are now required to use STP. Some of the benefits that businesses can derive from using STP are that it streamlines their payment process and provides greater transparency around entitlements. The ATO is working tirelessly to help small businesses catch up on their reporting with STP particularly those with time and resource constraints. The authors state that they have been working with Australian small businesses to make this transition to STP seamless and to remove the burdens they might experience with the transition, especially as respects reporting. Small businesses are encouraged to work with their tax professionals to make the process easier for them. Steps to get ready for STP are outlined in the blog.
Key Takeaways:
- Single Touch Payroll (STP) has lots of benefits because it allows employers to report the salaries and wages of their employees as well as their withholding to the ATO.
- A legislation that was passed in parliament in February now requires employers with 19 or fewer employees to start reporting through STP from July 1, 2019.
- These changes to the payroll process is termed to be super beneficial to employees because it streamlines payroll reporting business and provides greater transparency to entitlements.
“This is certainly no reason to be alarmed. The ATO is working hard to provide clarity on STP reporting and how it will save employers time and stress when it comes to their annual reporting requirements, particularly for those small employers who are time and resource poor.”
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