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Single Touch Payroll

If you’re an employer with 20+ employees, you’re probably already aware of Single Touch Payroll (STP). However, as of 1 July 2019, STP kicks in for all businesses regardless of the number of employees.

 

So just what is Single Touch Payroll?

Parliament recently passed legislation to extend Single Touch Payroll (STP) to include small employers (less than 20 employees). Larger businesses with 20+ employees have been reporting since 1 July 2018.

In simple terms, STP is an automated way of sending tax and super information to the ATO from your payroll or accounting software each pay event — weekly, fortnightly, monthly, or whenever you pay your employees.
The information supplied to the ATO will include:

  • Year-to-date totals of gross wages, allowances, deductions, and gross tax for each employee being paid.
  • Year-to-date amount of Superannuation Guarantee that has been accrued.
  • W1 gross wages and W2 gross tax for the pay run (so that the ATO will eventually pre-fill these totals for the BAS period onto the BAS for employers who report W1 and W2 on the BAS).

Superannuation payment information will be sent to the ATO by the SuperFunds with the information used by the ATO to check that you are paying.

Importantly, it will ensure your employees get their full superannuation entitlements, provide greater transparency, and ensure a level playing field for small business. It will also streamline business reporting and keep pace with the ever-changing digital landscape.

 

Being Accountable - payroll timesheets tax

 

What do I have to do?

If you’re a Being Accountable client, don’t panic!

As a Certified Bookkeeper, we have already ensured that this initiative will automatically happen.  We’ve been implementing STP reporting since July last year and are fully trained, resourced, and ready to support our clients should they need it.

From your perspective, the only thing you will need to do, is to ensure your payroll system employee information is up-to-date including name, address, date of birth, and tax file number. We’ll take care of the rest!

We worked with an accountant to help their importer client.

Problem
An accountant introduced us to a new importer client of his. He was 12-months behind in both his bookkeeping and compliance (unlodged BAS). The client’s previous bookkeeper hadn’t picked up the GST component on import customs and the file needed a lot of extra work to bring it up to scratch.
Outcome
Streamline accounting procedures so that the client can provide information and paperwork. We’ve also connected add-ons to Xero to assist the process. Provide end-to-end bookkeeping, payroll, accounts payable, accounts receivable, monthly reports, manage multi-currency accounts and import of stock, BAS lodgement, STP, super, and more. Liaise with accountant to help client stay on track and ensure file is current for monthly advisory sessions between client and accountant.
Solution
The client is now back on track and his bookkeeping compliance is up to date. They are managing growth and cashflow, building their business, and they don’t have to worry that they’re behind anymore. The accountant doesn’t need to worry either because he knows everything is in place so that he can concentrate on planning and the business advisory that he wants to do.