If you are an employer that has 20 or more employees you should already be using Single Touch Payroll (STP).
From the July to September 2019 quarter, if you have 19 or fewer employees, you will need to be Single Touch Payroll ready.
The Australian Taxation Office has acknowledged that for some business owners, getting ready for STP may be hard so there may be circumstances where small business will be allowed to report starting anytime between 1 July and 30 September 2019.
With STP, your payroll information will be reported to the Taxation Office each time you pay your employees, rather than monthly or quarterly via an Activity Statement.
If you are currently subscribing to Xero and you pay your employees and you are meeting your Super Stream obligations, then all you need to do is register for Single Touch Payroll. Perhaps you have already seen the "Get Started" page from the Pay Run in Xero.
We have provided some step by step instruction at this link, just click here: xerohelpaustralia.com.au
If you are using another accounting software such as MYOB, then MYOB also has provided a solution for STP that is now ready and compliant.
NOTE: Broadly speaking, the desktop versions of these softwares WILL NOT be STP compliant.
If you are wondering which bookkeeping or accounting software providers have solutions available or will have solutions in the near future, the Tax Office has a list, just click here: https://www.ato.gov.au/Business/Single-Touch-Payroll/In-detail/Low-cost-Single-Touch-Payroll-solutions/
If you have 1 to 4 staff members, initially the Tax Office will allow your BAS agent to lodge STP information quarterly on your behalf. No or low cost ($10 or less) options will also become available to you.
What about if my staff members are myself and my immediate family?
If your only employees are yourself and/or your immediate family (and are therefore a closely held entity), then you are exempt for STP for the 2020 financial year. From 1 July 2020 closely held entities will have quarterly reporting obligations (that is, with the quarterly Business Activity Statement). The finalisation date for STP will be aligned with the lodgement of the tax return.
Please feel free to contact me if you would like more information in regards to your STP compliance.
I am currently receiving high volumes of requests from Accounting Firms to assist their clients, as this is the cheaper alternative than $400+ currently being charged by our local Accounting Firms.