From 1st July 2019 Single Touch Payroll (STP) – the direct reporting of salary & wages, PAYG withholding and super contribution information to the ATO – will apply to all employers. This includes owners of businesses who pay themselves a wage or director’s fees.
This will be achieved through STP compliant software, and while there are already many on the market, Xero and MYOB have recently announced low cost options for small businesses starting from $10 a month.
Here are a few things to keep in mind when getting ready for STP:
You will need an STP compliant software ready to go by 1st July 2019
Small employers can start STP anytime between 1st July 2019 and 30th September 2019
PAYG withholding and super contributions have to be reported to the ATO as payments are made
While the PAYG withholding must be reported at this time, it is not compulsory to pay the liability at the same time
For more information on STP and business updates from March have a look at our ‘Your Knowledge’ newsletter. We will be sending out monthly issues of our business newsletter to all business clients so keep an eye on your inbox!