Article featured in Inside Small Business
The Federal Minister for Revenue and Financial Services, Kelly O’Dwyer, has announced that Single Touch Payroll (STP) will apply to all employers from 1 July 2019. ICB awaits the detail as we expect and hope common sense will prevail and the 2019/20 year will be a transition year allowing smaller employers to come on board during that year and that no penalties will apply.
Larger employers (officially called “Substantial employers” with more than 19 employees) are due to start payroll reporting through STP systems as from 1 July 2018.
ICB are involved in the co-design work with the ATO to establish a logical transition plan for software companies and employers. Transition may include deferred start dates for an employer if their software is not ready or if the employer’s systems need to be updated.
STP is not a small change. Each time you pay an employee, you must now report specified data to the ATO. It is a required lodgement and it is an approved form. In theory penalties may apply if the ATO says you haven’t lodged it. Therefore, our payroll systems have to track what was lodged when. Our systems have to interact with the ATO in case the ATO verification system wants to validate or reject some of the data.
For employers, we want the software to solve the problem. As employers our top priority is to pay the employees. Our dream for the payroll reporting part of STP is that the software will solve it. We don’t understate what this implies for our software.
Every employer will be reporting to the ATO how much Super they have accrued each time they pay employees. Now the Superfunds will be reporting how much Super has been paid to them (the fund) at least monthly. This was in the announcement.
This makes sense because then the ATO has an independent verification the employer has actually paid, but we will see how this comes into being.
Where to from here?
ICB will continue to keep you updated on STP – through our STP webpage, our upcoming webinar or listen to our past recorded webinars.
Matthew Addison, Institute of Certified Bookkeepers