From 1 July 2019, all employers who pay wages, withhold tax from wages and or contractors, make super contributions or pay fringe benefits will be required to report to the ATO under the Singe Touch Payroll (STP) system.

Benefits:

1. Employers will no longer be required to submit PAYG Payment Summaries for normal payroll information. However, Employee Share Schemes benefits will still need to be reported on a PAYG Payment Summary.
2. Employees will be able to view their year-to-date payroll information directly on with the ATO
3. From 2020 the ATO will pre-fill W1 and W2 on BAS/IAS forms

What Employers Need To Do:

1. It will be mandatory for employers to use payroll management software (eg. Xero, MYOB, Quickbooks). Alternatively, employers can use a registered agent or payroll service provider to report on their behalf.
2. For employers with 1-4 staff, the ATO has requested relevant software providers to develop a low cost STP solution – ie under $10.00.
3. Install digital certificate to transfer information to ATO
4. On termination of employment or at end of financial year, the employer must submit a “finalisation declaration”.

Maynard Accounting has many years experience working with small businesses. For assistance with payroll and and other bookkeeping/tax compliance solutions contact our friendly office.

Maynard Accounting – When experience counts!