From 1 July 2018, if your business has 20 or more employees, you'll need to report employees tax and super information to the Australian Taxation Office (ATO) through payroll software works with their new Single Touch Payroll (STP) system. The move, which the ATO says will greater transparency and connect businesses to the ATO through their existing software.
The ATO says it's been working closely with payroll software providers, tax and BAS agents and payroll specialists to get the system ready. And while some payroll providers have asked for some more time to get ready, the ATO says it's been working to make the transition as smooth as possible.
And while the program is intended for companies with 20 or more staff from 1 July 2018, the program will expand to all businesses with employees from the start of the 2019/2020 financial year.
A new information portal for STP has been established and the ATO has outlined a processes so you can prepare for the change. Step one is to establish where you have more than 20 staff with checking that your payroll software works with the new system and talking to your tax or BAS agent also on the list.
The ATO site also includes a couple of video providing an overview of the STP and what you'll need to do in preparation for using it.
If you're using a SaaS solution for your business' accounts, it's a good time to ensure you'll be ready for the switch when it's flicked in a few weeks.