Single Touch Payroll, for one and all
14 February 2019
On Tuesday legislation passed to extend the Single Touch Payroll (STP) system to businesses with fewer than 20 employees, changing the way small business employers report their employee’s tax and super information to the ATO.
Legislation for employers with 20 or more employees was passed in July 2018. The new reporting rules for employers with less than 20 employees will apply from 1 July, 2019.
The change means information on wages, deductions and super will be provided in real-time from all Australian businesses, regardless of workforce size.
According to data from the Australian Bureau of Statistics (ABS) reported by Accountants Daily, “there are approximately 781,908 businesses with 19 or fewer employees in Australia. That’s about 36.8 per cent of Australian businesses that will be impacted by the extension of the STP system.”
STP is considered by many in the financial sector to be one of the biggest tax reporting changes since the introduction of the Goods & Services Tax (GST) in 2000.
For employers with less than five employees, cheaper payroll options may be available to lessen the financial impact of STP. If you are one of these employers please contact your Boyce accountant to discuss your options.