[sg_popup id=”1″ event=”onload”][/sg_popup]Employers, Single Touch Payroll (STP) is coming your way.
The handle Single Touch Payroll is misleading and does not accurately reflect what is going on.
Broadly speaking, this initiative has been introduced to tackle two key components of employment; employee wages and employee superannuation. Recently, the superannuation implications of Single Touch Payroll have been in the spotlight, but not a lot has been mentioned about what Single Touch Payroll means for your employees’ wage information.
STP is for employers to automatically report employee salary or wage information in real-time, in particular PAYG and superannuation data. This data is reported to the Australian Taxation Office (ATO) via Standard Business Reporting.
Standard Business Reporting (SBR) has been around for a few years and describes a standard approach to online or digital record-keeping for different types of Government reporting. The question to be asked is if your accounting / payroll software is SBR enabled.
At this stage, the ATO has indicated that employers with 20 employees or more can report through Single Touch Payroll (STP) from 1 July 2017. As of 1 July 2018, this will be a mandatory requirement.
So what does STP actually mean for your hospitality or retail business?
The ATO has in recent years stepped up audits of small businesses in high-risk industries, which it suspects may be taking illegal cash-in-hand payments.
It’s estimated that almost half (45 per cent) of businesses in the restaurant, cafe, takeaway and catering industry are cash only – a huge chunk of these will get a visit from the Tax Office this month, as part of the agency’s continued focus on the illegal cash economy.
Businesses that use cash only have a higher risk of not correctly reporting sales, Mr Wheeler said. “These industries are on our radar because they have ready access to cash, and this is a major risk indicator,” he said.
To satisfy complex audit requirements you will need real-time wage information that can be reported to the Government via SBR enabled software. This means every time you pay an employee; this information will be automatically lodged online to the Government.
While the information you need to report isn’t complicated, it is the frequency and the method of reporting that can be difficult. It is not as simple as printing a report and uploading to the ATO.
STP provides the Government with a clear line of sight into your business practices. This means now, more than ever, it is critical to ensure that your employee related payments are compliant.
The foundU Platform is SBR enabled and our payroll award interpreter is 100% compliant. Not only will your on-boarding, rostering and payroll be streamlined and automatic, but all necessary lodgements with the ATO will also occur automatically.
Our team of change management experts will ensure a smooth transition into the new era of Single Touch Payroll.