STP is simply a change in the way payroll payments are reported. It has already come into play for businesses with 20 or more employees, and will begin for smaller employers from 1 July 2019.
Every time employees are paid, information on salaries and wages, superannuation and PAYG withholding is transferred to the ATO. And it’s not all bad news! Despite fears of additional paperwork, STP actually necessitates accounting software that can do this for you. It means less reporting is required at BAS time, and should also lead to less paperwork at the end of the year!
The whole purpose, after all, was to streamline administration obligations of business owners (oh yes, and to provide greater transparency and visibility to the government!).
- If you are already using cloud accounting software, such as MYOB Live, Xero or Quickbooks Online, this should have minimal impact. Just be sure to check the payroll options tied to your subscription
- If you are using a manual system, or accounting programs such as Banklink, Cash Manager or a desk-top version of MYOB, an online system will be necessary before 1 July 2019.
YBM encourages everyone to double check whether they are complying, and start planning if it not yet applies to you. The ATO have clearly stated that 2018-2019 is a transition year. This means there is help available and the chance to make corrections. Your payroll software is the first place to start, while also ensuring that all employee and employer details are correct.
Please give us a call if you need assistance, or check out the ATO guidelines.