Single Touch Payroll
Small businesses need to know what is in store for them regarding the upcoming STP regime. This regime impacts not just businesses but every employee.
Earlier this month, the bill to extend STP to employers with 19 or less employees finally passed, bringing businesses of all sizes under the regime from 1 July 2019.
Recognising the limited time left to the start date of 1 July 2019, the ATO will allow small businesses to start reporting any time between 1 July and 30 September 2019, giving them effectively a three-month buffer period to avoid a rush during tax time 2019.
Further, any small employer who requests additional time to start STP reporting will be granted a deferral, with exemptions for employers experiencing hardship, or are in areas with intermittent or no internet connection. There will also be no penalties for mistakes, missed or late reports for the first year.
So, what will be the benefits - Business owners will be operating in real time for payment of wages and superannuation; it will be very difficult to inadvertently miss paying SG contributions or PAYG tax. In addition, your accountant will have immediate access to your online tax office reports, and so can always effectively know your liabilities.
For employees, the transparency will be important in ensuring that their entitlements are properly maintained.
Dereen Wallace, Partner
MBA BUSINESS SOLUTIONS