Single Touch Payroll is applicable to all Australian businesses with 20 plus staff as of 1 July 2018. Employers eligible need to perform a head count of all their staff as of 1 April and to keep a record of this on file. Businesses with 19 or less staff do not have to report until 1 July 2019 (unless they want to opt in) so they can breathe easier for another year.
The head count should only include full-time, part-time, overseas staff, any employees absent or on leave (paid or unpaid). Casual and seasonal workers who are on your payroll on the 1st of April and also worked with you during March should be included too. There are exemptions to counting seasonal workers who were employed with you for a short-time.
Exclude from your head count casual staff who did not work with you in the month of March, or ceased their employment with you prior, staff from a third-party labour hire company, independent contractors, company directors or officeholders and religious practitioners. To produce the reports required for filing is easy especially if you are using software like MYOB or Xero. All you need to do is to run a card file report as well as a payroll summary report for the month of March and filter this to include the employees that form part of the head count and then file it away for future reference should it be required to substantiate your head count.
Are you prepared yet? If not, all you need to do after your head count is the following:
· Check whether your payroll software provider is ready for reporting Single Touch Payroll. You may need to upgrade or update your current software. If your software provider is not ready yet you can request a deferral from the ATO (and some software providers have already requested deferrals – you can get the deferral reference number from your provider if required)
· It is recommended to be subscribed to your software providers e-communication so you are kept in the know.
· You will need to set up your payroll so that it reports STP correctly
· Apply for an Auskey if you
· Encourage your staff to register for MyGov as that is where they will see pay details, information about superannuation paid and end of year totals.
· Ensure you have educated your staff about Single Touch Payroll so they are also across the changes – especially your payroll team members.
· Check your employee information in your software is accurate – all their personal details including name, address, date of birth, TFN and other important information must be correct
· It is a good time to check whether you are paying your staff correctly.
· Review your employees’ super and leave entitlements are calculating correctly.
If you do not have software at all and are required to report STP you can contact us to help you set this up in time for 1 July.
By having the right software and setup for STP you will be able to report without a problem on 1 July, you will also have peace of mind that you are compliant. If you do not have software at all and are required to report STP you can contact us to help you set this up in time for 1 July. Make sure you make an appointment early with us; don’t wait till the last moment.
About the Author:
Pam Madytianos is a director of 2 Peas Pty Ltd, an award winning accounting software business providing accounting, operational, bookkeeping and advisory services to clients nationally.
Pam’s experience covers a diverse range of industries including retail, hospitality, manufacturing, medical, service to name a few. Pam and her team love dealing with multi-site operations, and have particular expertise in inventory, multi-currency and payroll solutions.
Pam is also a welcomed HR Central Certified Intermediary through the HR Central Partner Program. This program is an opportunity for Bookkeepers, Accountants and Trusted Advisors to assist their own clients with any HR needs/concerns they may have. If you think this program may suit your business, contact us to find out more.