Switching to Single Touch Payroll early removes tax-time headaches
If you have a business that employs fewer than 20 people, you’re now required to begin using Single Touch Payroll, and getting it sorted soon will save complications later.
You may have read the stuff on STP reporting and breathed a sigh of relief that you don’t need to do anything this year, and that’s understandable.
As a small business, you haven’t got time to muck around with a whole new reporting change, so anything you can put off is a bit of a God-send.
But the benefits of STP reporting for your business mean that a little bit of time spent now can help make you and your employees happy.
Here’s why you should consider going early on STP and start reporting on 1 July this year.
STP adoption means no group certificates (if you choose)
The key feature of STP reporting is that you’ll be sending the ATO payroll information each time you run a pay. You won’t need to change when you submit your pays through your payroll solution.
So, there’s no messing around at the end of each financial year with group certificates and hunting out this information for the ATO. It should be noted that MYOB software will still be able to produce a group certificate, if you want one — but you’re not required to create one.
Instead, all that information contained within your payroll solution will automatically reach the ATO. This equals fewer mistakes. Bliss.
STP payroll will cut out mistakes that employers make when paying the superannuation guarantee for employees.
The ATO will be able to match up your statements with your employees’ super provider. If there are any discrepancies between the two statements, they’ll alert you.
Most employers want to do the right thing by their employees. A lot of underpaid super happens as a simple mistake – not cloak-and-dagger tricks.
Because the ATO will be able to check what’s going on more regularly, their alerts about underpaid staff can reach you more quickly. This beats receiving a bill for two years of unpaid super. Ouch!
Why your employees will love it
The benefits of STP for your employees will come if they have a MyGov account. Their choice though – they won’t be required to have one.
Through MyGov, whatever month of year, they’ll be able to see your information that the ATO has regarding their pay, including super. There’s no waiting for their group certificate after 30 June.
For your employees, that’s cool.
They’ll be able to see their paid superannuation, with super funds also reporting to the ATO as part of the STP scheme from 2019.
So if your team wonders if their super is going through A-OK, they can check for themselves instead of asking you to check.
This boosts your business in three ways:
- your employees are more informed and empowered about their financial situation – they’ll have their mojo on
- you’ll spend less time checking on things for employees – phew!
- employees will have more information pre-filled into MyTax because of the STP reporting change so less time is spent checking on things tax time – phew!
5 steps to jump on board early
- Talk to your advisor about the change
- Make sure you’re on an STP-enabled payroll solution, such as MYOB
- Talk to your employees about the change, and why they should get a MyGov account
- Get ready to start reporting through your chosen MYOB solution on 1 July