After a couple of years, the STP (Single Touch Payroll) initiative rolled out by the ATO has been going strong, supporting businesses to deliver real-time digital payroll reports. This includes Gross wages, PAYG withholding tax and superannuation information. As this process has been a gradual change from the previous process, there have been exemptions for certain smaller businesses from the initial deadlines. Until now, that is.
If you are facing the transition into STP for the first time this financial year, our team here at Glance Consultants are more than capable to assist. It may seem a little daunting, needing to utilise a new digital payroll system for the first time. Our team are familiar with its requirements.
As of July 1st 2021, businesses that were previously not required to report through the STP, such as micro-businesses and seasonal employers or those with closely held employees, will need to transmit wage information through Single Touch Payroll.
What is a closely held employee?
This is another term for employees directly related to the business, such as family members of a business owner who are being paid for their time, beneficiaries of a trust, directors and shareholders. So, for example, if you employed your uncle for the use of his truck or a cousin you will need to process payroll and submit the information via STP.
You can either submit the information directly yourself or outsource this function to your bookkeeper/accountant, depending on how involved you wish to be in the financial matters of your business. We will also discuss the timeframe you are given, whether you need to be declaring wages weekly, monthly, quarterly or yearly, as businesses will be faced with different circumstances.
If you are one of the small businesses having to adapt to STP, embrace the digital transformation as a positive experience, especially when you have us on your side. The STP process allows you to simplify matters when it comes to EOFY.