Single Touch Payroll – Are you ready!!!
From 1st of July 2018 Single Touch Payroll (STP) will become mandatory for substantial employers, and subject to legislation being passed will become mandatory for all employers across the board with effect from the 1st of July 2019.
What this means for you as an employer
- If you have 20 or more employees than you must report to ATO in real-time all payroll information.
- If less than 20 employees then you need to plan ahead for if STP becomes mandatory in July 2019.
What this means for you as an employee
- Your payroll information will become available in MyGov account within days (of being reported by Employer).
- Annual Payg Summary may be discontinued by your employer.
- Payslips not required under STP: Payslips are a requirement of fair work; and are not affected even if reporting is done under STP in real time, these still have to be issued.
- Liquidity of Employer will be affected: STP is about reporting and it does not change the payment timelines that are currently in force for the employers
- Increased Audit activity by ATO for non-compliance for Payg.
- Data matching with Centrelink in affecting Family tax payments.
- Data matching with Immigration affecting Employers with 457 obligations.
- Contractors may be considered as employees in certain circumstances.
- Group Employees may go over the limit even if individual companies numbers do not.
- Super payments will be closely monitored and audited.
- Personal liabilities in certain situations for dues of Employees and Super.
How we can help
- Review if you are covered by Single Touch Payroll (Employee can include those not working e.g., those on Leave, Directors, Casual etc.,) and if yes then advise on setup and reporting.
- Review your payroll system and process to see if they are compliant.
- Do a risk assessment of your current systems and suggest solutions to mitigate them.
- Franchisee /Franchisor Models review of specific conditions in STP.
Please follow and like us: