What is single touch payroll?
If you’re running your own small business and you’re paying staff, your reporting obligations to the Australian Taxation Office (ATO) have recently changed. From 1 July 2019, all small business with 19 employees or less must now use the single touch payroll system to report your staff members’:
· salary and wages,
· pay as you go (PAYG) withholding tax information, and
· superannuation guarantee payment information. It’s compulsory for you to pay 9.5% of each of your employee’s earnings into a complying super fund, provided they’re over the age of 18 and earning more than $450 per month from working for you.
The good news is that STP-enabled payroll software such as Xero can make this reporting process easy. It automatically sends all the information that the ATO needs.
STP replaces the old payroll reporting system where you had to provide your employees with an end of financial year group certificate or statement of earnings. Now your employee’s income information is updated each time your STP report is sent through to the ATO. Employees can access their up-to-date income information by creating a myGov account and linking it to ATO online services.
You also no longer have to provide the ATO with an end of financial year payment summary report for each employee since the introduction of the compulsory STP system.
How we can help
At Scorpion Bookkeeping, we’re a Xero-certified advisor. We specialise in helping innovative business owners to take advantage of all the benefits of Xero accounting software. We can help you to get set up in the cloud and we can also provide you with any bookkeeping support services that you need. We currently have business clients in South Australia, Victoria and New South Wales.
Contact us today to find out how we can help your business!