Single Touch Payroll (STP) has transformed the way employers report payroll information to the Australian Taxation Office (ATO). It is crucial for businesses to stay up to date with the latest STP updates and adopt best practices to ensure compliance. Find out about the most recent changes to STP and how you can stay compliant with this article from Alexander Bright – a trusted provider of bookkeeping services in Melbourne.
Starting from 1 July 2021, small employers with 19 or fewer employees are now required to comply with STP. This means that all salary and wage payments, PAYG withholding and superannuation information must be reported to the ATO through an STP-enabled payroll software.
Previously, employers were required to report employees’ year-to-date gross payments on each payslip. However, the ATO has removed this requirement. Employers now only need to report the gross payment amount through STP at the end of each financial year.
The ATO has introduced STP Phase 2 reporting, which has been implemented since 1 January 2022. This phase requires additional information to be reported, such as closely held payees’ payments and child support deductions.
Ensure you have an STP-enabled payroll software that meets the ATO’s requirements. This software allows you to report payroll information directly to the ATO with ease and accuracy. Regularly update your software to ensure compatibility with any STP updates.
Familiarise yourself with the reporting obligations under STP. This includes reporting employees’ salary and wage information, PAYG withholding amounts and superannuation contributions accurately and on time. Stay informed about any changes to reporting requirements to avoid non-compliance. This is an area where business accountants in Melbourne can be invaluable.
STP streamlines superannuation reporting by providing real-time data to the ATO. Ensure you make superannuation contributions for your employees on time and report these contributions accurately through STP. Failure to meet superannuation obligations can result in penalties and employee dissatisfaction.
Regularly review and update employee data, such as tax file numbers, addresses and employment details. This ensures accurate reporting and reduces the risk of errors in STP submissions. Communicate with employees to verify their details and promptly address any discrepancies.
If you have any doubts or concerns about STP compliance, seek advice from accountants or bookkeepers in Melbourne who have expertise in payroll and taxation. They can provide guidance specific to your business’s needs, helping you navigate complex STP requirements.
Keep yourself and your team updated on STP changes and best practices. Regularly check for ATO updates and subscribe to relevant newsletters or resources. Conduct training sessions or provide educational materials to ensure everyone involved in payroll processes understands their responsibilities under STP.
Staying compliant with Single Touch Payroll (STP) updates is crucial for businesses in Australia. By understanding the recent changes and adopting best practices, you can ensure accurate and timely reporting of payroll information to the ATO. Use STP-enabled payroll software, maintain accurate employee data and seek professional advice when needed. By following these practices, you can streamline your STP processes, avoid penalties and maintain a compliant payroll operation.
For further information on STP or to find out how our business accounting services in Melbourne can help you, contact Alexander Bright today.
Disclaimer: The accounting advice provided in this article is for informational purposes only and should be self-verified or consulted with a qualified accountant before making any financial decisions.
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