It’s been almost 12 months since the ATO introduced Single Touch Payroll (more affectionately known as STP).
This will be the first End of Financial Year (EOFY) we’ve had STP and its fundamental change to reporting. But has STP been a win? Has it had unintended consequences? And what should businesses with less than 20 employees expect once STP becomes compulsory for them on July 1, 2019?
Join me, Ray Ali, payroll specialist at Employment Hero, as we look at:
How STP has changed EOFY for payroll officers
What the advantages are one year on from implementation
How STP can make your business run smoother
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The First EOFY with Single Touch Payroll.
While many payroll officers did report it required more work to set up, STP has had some pretty big wins for small and medium businesses alike:
Payment summaries are going to be a breeze.
Creating and distributing payroll summaries to each of your employees does take quite a bit of time – especially managing the expectations of the super organised employees ready to do their tax returns on 1 July.
Reporting tax and super at each pay event has taken a little bit of extra time at each pay run but it means that EOFY is going to be a breeze. Once you’ve finished your final pay run, that’s it. Employees can start the tax return process straight away from MyGov.
There should be fewer errors than before.
Despite your best efforts, there can be genuine errors that happen with payroll. The EOFY is usually when reporting takes place and these errors are identified. Since STP reporting has been more frequent, identifying discrepancies in the numbers has been occurring more regularly. This has provided a chance for businesses to correct errors sooner and should speed up finalising end of year.
New systems to manage STP help you stay compliant.
At Employment Hero, we were founded to help make employment easier. One of the biggest pain points we saw was small businesses concerned with paying staff correctly against the complicated Modern Awards.
There’s a seemingly endless line of day-to-day HR compliance issues that every successful business owner needs to master. It makes it feel like running a business calls on your innate juggling skills. It’s easy to underestimate the time that people management issues and HR challenges and compliance issues take up.