If you are an employer you are likely to have heard about Single Touch Payroll (STP) but do you know what it is you need to do?

It will take effect for most employers from 1 July 2019.

If you haven’t yet taken steps to implement this ATO requirement, this outline will give you an easy to ready summary of what you need to do and by when….

5 – 19 Employees

  • Ensure your existing payroll program is STP compliant; OR
  • Choose an STP compliant payroll software and commence reporting by 1 July 2019 (you can start earlier if you wish).
  • If you don’t think you will be ready by 1 July 2019, prepare a Deferral Application; OR
  • If you live in a remote area with intermittent or no internet connection, apply for an Exemption.

1 – 4 Employees

  • Ensure your existing payroll program is STP compliant; OR
  • Choose an STP compliant payroll software and commence reporting by 1 July 2019 (you can start earlier if you wish).
  • There a number of low cost and no cost STP solutions available, some of which can be found at on the ATO website
  • If you don’t think you will be ready by 1 July 2019, consider lodging through a third party agent; OR
  • Prepare a Deferral Application (these will only be accepted by the ATO under certain circumstances); OR
  • If you live in a remote area with intermittent or no internet connection, apply for an Exemption.

Are you a closely held employer?  If so, the requirement to be STP ready does not commence until 1 July 2020.  A closely held employer is a business that only employs family members.

If you need help determining your employer status and what steps you need to implement, please contact us on 03 52216399 or at info@davidsons.com.au.

We have a helpful checklist on our website that will assist you step through the process as well as other articles on this topic that may be of assistance.  Find out more at www.davidsons.com.au

Disclaimer: this information is of a general nature and should not be viewed as representing financial advice. Users of this information are encouraged to seek further advice if they are unclear as to the meaning of anything contained in this article. Davidsons accepts no responsibility for any loss suffered as a result of any party using or relying on this article