Are you ready for Single Touch Payroll?
Having now passed the 1st of April milestone for employee headcounts, we are now into the final quarter for the 2018 financial year and well on our way towards the first Single Touch Payroll (STP) reporting deadline.
If you haven’t already done so, you need to conduct a headcount as of 1 April 2018. This will confirm whether you need to comply with the new requirements by 1 July this year (if you had 20 or more employees) or if you can hold off until 1 July 2019 (if you had less than 20 employees).
If your organisation falls into the 20 or more-headcount category, now’s the time to act to avoid any unintentional compliance penalties. It is now important to investigate whether your payroll software or business management software (BMS) will be ready in time.
This will depend on what system you use to manage your payroll, what payroll software you use, or whether you outsource this function to a third-party provider.
Deferrals
Some payroll software companies and payroll providers have applied for deferral from the 1 July 2018 deadline and have been granted additional time to get their systems ready. Employers are encouraged to contact their payroll provider to check if they have a deferral.
If you’re concerned about your own readiness as an employer you can apply to the ATO for a deferral under certain circumstances, such as if you are still transitioning to a new STP-enabled solution or have complex payroll arrangements – get more detail on the ATO website.
Get help if you need it
If you’re finding Single Touch Payroll a bit of a challenge, we are here to help. Contact us to discuss your approach to meeting the new requirements.