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All systems go for Single Touch Payroll

Single Touch Payroll is a government initiative that will change the way you report on your payroll to the ATO – and you need to ensure your software is ready now.

Are you a small business with fewer than 20 employees? Single Touch Payroll (STP) is here – and you need to be ready.

STP is a government initiative that will change the way you report on your payroll to the ATO.

Under STP, your business will report on salary or wages, pay as you go (PAYG) withholding and superannuation directly to the ATO electronically at the same time as you pay your employees.

It’s this direct electronic connection to the ATO with every pay run that’s new and it may require your payroll systems to be upgraded. If you’re using Xero (as most of our clients are) you’re halfway there because Xero is STP compliant.

STP was introduced for businesses with 20 or more employees last year. Now STP is set to be rolled out in stages to smaller businesses with 19 or fewer employees as at 1 July 2019.

Here are three key pointers to ensure you’re STP ready:

  • Does your payroll software support STP reporting? If you’re unsure, contact us immediately and we can help you review your business accounting and payroll systems.
  • If you don’t use payroll software, you can choose an STP ready solution or request that PSZ reports through an STP ready payroll solution on your behalf.
  • If you have 1–4 employees, you can choose a low-cost STP solution. We can advise you.

If you need help in reviewing your software and payroll processes to get ready for STP, or any clarification about what’s required, we urge you to contact us now.

You can also download a more detailed STP employer guide and checklist here.

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