Single Touch Payroll is top of mind for all small business owners in Australia, especially tradies. All business owners who employ staff and run payroll will be affected with the new changes as of 1 July 2019. If your trades business employs contractors or staff, you will be required to comply with the ATO’s new initiative, called Single Touch Payroll, this year.
What is Single Touch Payroll?
The Australian Tax Office (ATO) has launched a new initiative called Single Touch Payroll which is designed to streamline payroll reporting. By using STP, you will be sending salary, tax and super information directly to the ATO every time you run a pay event, giving the ATO access to real-time data.
Who is Single Touch Payroll for?
All small businesses who employ staff need to make the switch to Single Touch Payroll. Those with 20 or more employees were already required to report using STP last July, but now business with 1-19 employees will also need to comply as of 1 July 219.
How will this change affect tradies?
Just like other small business, trades-based businesses that employ staff need to also make sure they are STP compliant.
The good news is you can use accounting software like QuickBooks, and easily get STP compliant today. QuickBooks Online integrated Payroll, powered by KeyPay, comes with STP compliance built-in and will automatically send the payroll information onto the ATO each time you perform a pay run.
This change also means you will no longer be required to provide payment summaries to your employees for the payments you have already reported using STP.
Find out more about QuickBooks and STP.
Single Touch Payroll and closely held payees
If your business employs closely held payees, the ATO is offering some exemptions to help you with the transition. Closely held payees will be exempt from STP reporting this year, but will instead commence on 1 July 2020.
Read more about closely held payees and STP.