Single Touch Payroll – What Every Business Needs To Know!

From 1st July 2019 every small business in Australia that employs staff will need to change their reporting to the ATO. Previously the monies paid to employees were reported annually to the ATO, however, this new system known as Single Touch Payroll will enforce weekly reporting to the ATO. This commenced in 2018 for businesses with more than 20 employees, but from July 1st 2019 it will apply to all businesses that employ staff. 

For the very small and micro business that may only have one or two employees this represents a big change, particularly if they don’t have an accounting software in place that can automate the reporting for them. However, we think Single Touch Payroll has some distinct advantages and there are some cheap alternatives to ensuring that you are compliant. 

  1. Do you employ staff?

If the answer is no, then you don’t need to worry about this change. But if in the future you do employ some people then keep in mind there are significant reporting requirements that you will need to adhere to. 

If the answer is yes, then you need to ensure that you have your systems and processes in place to be ready for July 2019. 

2. Do you use accounting software? 

If you answered no, then you need to start using some software. We recommend that you use accounting software for all of your business bookkeeping because it makes everything, especially BAS much easier. However, if you have a simple business and want to continue to use spreadsheets then that is fine, we can still set you up on an accounting software just for your payroll only. 

3. If you already have accounting software, is it a cloud based software? 

If it is then we can help you set up STP and provide you with any training required to ensure that you are compliant before July. If you are using a software that isn’t cloud based then we can also help set you up with a simple solution that is cloud based starting from just $10 a month!

Contact us today to have a chat about Single Touch Payroll and how we can help you to be compliant before July.