You may have heard that Single Touch Payroll is here to stay, but are you wondering what it means for you and your business? Change isn’t always convenient, but moving to Single Touch Payroll can be a positive step for many small businesses who have employees. Not only can it save you time and effort in the long run, but it’s designed to improve accuracy and minimise any errors when generating payroll – that’s a win win for every business.
We sat down with Nicolette Maury, Managing Director and Vice President of Intuit Australia, to find out exactly why Single Touch Payroll is better for business.
“STP is all about increased visibility and automated information sharing. Real-time data is sent to the Australian Tax Office every time you pay your employees, including wages, deductions and super information. This increases efficient and reduces tax evasion,” explains Nicolette.
Before Single Touch Payroll came into effect, businesses had to withhold amounts from employees’ salary and then submit their PAYG at a later day. Now, STP allows business owners to submit information immediately after payroll occurs, which helps to streamline the entire reporting process.
“Overall the news is positive for small businesses. Updating the ATO after each pay event means you will no longer need to spend time reporting payment summaries at the end of the year and there’s less room for error in salary payments,” says Nicolette.
Currently the ATO only requires businesses with 20 employees or more to abide by Single Touch Payroll, but it’s expected that businesses with 19 or less employees will have to be compliant as of July 1, 2019. So it’s worth getting onboard as soon as you can.
Thankfully, if you’re a QuickBooks Online customer, you are already able to start using Single Touch Payroll because of our built-in solution from KeyPay. QuickBooks Online integrated Payroll, powered by KeyPay, works behind the scenes to automatically report your data with every pay run, ensure your payroll is on time and compliant – every time.
“Moving to a STP-ready accounting solution will deliver benefits far beyond STP compliance. You’ll have easy, quick access to up-to-the-minute financial data that helps you make smarter and more insightful business decisions and tools that help you get paid faster,” says Nicolette.
Find out more about Single Touch Payroll here.