Understanding Single Touch Payroll Requirements
The introduction of single touch payroll (STP) has been long anticipated by the Australian Tax Office, and with the deadline to become compliant approaching, it is important for business owners to understand what this means for them. STP is a new way of reporting salary and wages information, as well as superannuation contributions made to employees by employers. It simplifies the process of submitting these details to the ATO. Here’s a guide on what business owners need to do in order to meet their STP obligations.
Check your eligibility: Before you can begin the process of becoming compliant with STP requirements, you need to determine if your business is eligible. To be eligible, your business must have at least one employee receiving a salary or wage and must be registered with an ABN (Australian Business Number). If you are unsure if you are eligible or not, you can consult the ATO website or contact them directly for advice.
Choose a solution provider: Once you have determined that your business is eligible for STP compliance, it’s time to choose a solution provider that best fits your needs. Depending on how many employees you have, there are different options available such as desktop software or cloud-based solutions which can help make the process simpler and more efficient. Most providers offer free trials so that businesses can assess whether they are suitable before committing to purchase any services from them.
Set up STP reporting: Once you have chosen a suitable solution provider, it’s time to set up STP reporting for your business. This involves entering all necessary information about each employee into the system and ensuring that everything is accurate and up to date before filing reports with the ATO each pay cycle. The data should include gross wages payable, deductions made from wages (e.g., tax), amounts paid into superannuation accounts on behalf of employees and other relevant details required by law in Australia such as leave entitlements and any other benefits received by employees during that period of time.
Submit reports: Once all of this information has been entered into the system and checked for accuracy, businesses will then be able to submit their reports electronically via STP-enabled software or through web-based portals provided by their chosen solution providers . Reports should be filed within 10 days after each pay cycle , and businesses should retain records for at least five years in case these need to be reviewed at any point in future .
With just two months left until the deadline for compliance , now is the ideal time for business owners across Australia to ensure they have met all their obligations under single touch payroll requirements . By choosing an appropriate solution provider , setting up accurate recordkeeping systems , and filing timely reports , businesses can remain competitive while staying on top of their financial responsibilities . Taking advantage of available resources such as those provided by Metric Marketing can also make this process much easier - freeing time up so that entrepreneurs can focus on growing their businesses instead of worrying about paperwork !
