What is Single Touch Payroll?
If you’re a small business with 19 or less employees, you are now required to use Single Touch Payroll (STP) reporting.
This rule came into effect on 1 October 2019 , but many small businesses (up to 70% in fact) are yet to adopt it – despite the fact it’s cheap and easy to get started.
What does it mean for small to medium businesses?
STP reporting allows you to report your employees’ payroll information – including salaries, PAYG withholding and super – to the ATO at the same time as you complete your pay run.
This simplifies your bookkeeping requirements as it removes a step from the reporting process. It also improves the timeliness and accuracy of information you send to the ATO.
How do you get started?
To start using STP reporting you need to be signed up to STP-ready software.
If you currently use accounting software such as Xero, Reckon or MYOB you should be ready to start using STP straight away.
Are there free or low cost options?
There’s a wide range of STP-ready software products available – including a number of options that are either free or cost less than $10 per month.
The ATO website features an extensive list of no-cost or low-cost STP solutions.
If haven’t already started using STP reporting, speak with your accountant or bookkeeper and work together to ensure your business is compliant.
B2B Pay and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.