Everything You Need to Know About Single Touch Payroll - Our Guide
The Australian Tax Office (ATO) has rolled out the Single Touch Payroll (STP). The recent regulation has changed when and how small businesses report their payroll activity, in which they are expected to send a report digitally to the ATO every payday. How will this affect businesses?
Streamlines the Reporting Process
STP now helps businesses align their reporting obligations to their processes. That said, companies can submit payroll information after payroll. Thus, this will make the process much easier and smoother, compared to fixing the reporting once a year.
Reduces the Error
STP allows ATO to pre-fill Business Activity Statements (BAS) for employers. In turn, this will help reduce errors, which can quickly occur when going back over finances. Errors may also incur fees for the employees, which is an additional cost that you can avoid.
Saves Time & Money
With STP, ATO will automatically track the figures and upload them online. Employees will have access to their payment information, including year-to-date tax and super information. In this case, employers will be able to save time and money because they no longer need to generate and distribute payment summaries to employees at the end of each financial year.
Makes Access Easier
Employers who hire new employees will not have a hard time acquiring the tax file number and superannuation information because they can get them directly from myGov. To make it even better, employers no longer need to chase employees that don’t provide them with these details because they will now be able to easily access the information.
Is Your Business Ready For STP?
STP looks promising, but is your business ready for it? Here are some of the ways that can help prepare your business for STP:
1. Choose the right software
To report STP, you need reliable software that will suit your business’ needs. Choose a service provider that has excellent customer support. Good customer support provides some peace of mind, knowing that you can reach them should you need anything in the middle of the day or night.
2. Hire a small business accountant
A small business accountant will help you navigate STP for your business. Your accountant may also guide you with compliance obligations and alternatives in STP reporting.
3. Involve your employees
When you’re switching to STP, make sure to keep your employees in the loop. Use this opportunity to be transparent when it comes to their wages and overpayments.
STP is an effective way to improve your payroll activities. With STP, you don’t have to worry about submitting payroll reports at the end of each financial year. By doing it every payday, you get to stay on top of your finances, becoming a more organized institution. Your employees, on the other hand, will also appreciate the fact that they’ll have easy access to their payroll information every payday.
All you need to find is a reliable software and a small business accountant that can guarantee you a smooth transition. Make the payroll easier on your end and use STP for your small business today!
If you’re looking for small business accountants in the Gold Coast that work with business owners efficiently, get in touch with us today to see how we can help.