By now, most employers would have heard about the new reporting requirement for employee obligations to the Australian Taxation Office (ATO) – Single Touch Payroll (STP).
In a nut shell, employers must report each pay run to the ATO by sending their STP data from their payroll software. This has been introduced to eliminate non-compliant issues especially superannuation guarantee obligations by the employer. Many employees over the years have lost superannuation due to non-payment by employers for various reasons – cash-flow issues, lack of understanding for employer obligations, etc.
I strongly support that the Australian taxation system needs to account for all taxes to ensure that, as Australians, we can live in a country that has possibly one of the highest standards of living in the world. I also agree that all businesses, employers and employees alike must adhere to all taxation requirements and obligations; While I think it is a great initiative to engage Australian employees and employers into the ever-evolving digital world, I do believe it has only been brought about by a few less honest operators, and can be a tougher compliance measure for smaller hospitality businesses to navigate, as STP now adds more steps for employers to complete at the end of each pay run.
At Brisan, we safeguard our clients with staff, to pay current pay rates according to the awards or agreements in place with employees. We also ensure correct reporting procedures are maintained, records are kept up-to-date and all employees receive the correct documentation throughout their employment. Our clients utilise our services so that they are kept abreast of any changes to ‘Fair Work’ or ATO obligations and compliance updates, as well as ensure they continue to be compliant with all lodgement and obligatory requirements.
Our clients engage our services as they want a fair and just relationship with their employees as well as with the ATO and other government bodies. These are, ‘Honest Employers’ who will have no hesitation in coming on board with this new digital method of reporting to the ATO.
What you need to know about Single Touch Payroll
- STP results in added costs for employers who have not yet invested in computerised payroll systems up until now because there probably was no need. They may only employ one employee and regardless of whatever system they had used – a ledger book, spreadsheet or perhaps the humble shoe box, they were still able to maintain the employer’s compliance obligations. Alas, they must now introduce STP into their “systems.”
- Businesses with 20 or more employees should have been STP ready from 1 July 2018
- STP will eliminate many facets of payroll which has caused angst with payroll officers and business owners. Although it takes an investment in a digital payroll system, for employees, it will provide a true position of their tax and superannuation information at any given time.
If you are an employer and are yet to be STP ready, please do not hesitate to contact us and we will be more than happy to assist you to engage in this new digital way of reporting. Tel: 08 8235 1594
Nicole Evans, Director