Have you heard about STP and wondered what it is? Or maybe this is the first time you have heard of it. What you need to know is as of July 1, all businesses will need to comply with new legislation
The intention is to make reporting easier by sending tax and super information from your payroll or accounting software to the ATO as you run your payroll.
How To Ensure Your Small Cafes And Hospitality Businesses Is Ready
When you run your payroll and pay your employees your pay cycle does not need to change. You can continue to pay your employees weekly, fortnightly or monthly as per normal. What will change is that your STP-enabled payroll software will send a report to the ATO which includes the information, such as salaries and wages, pay as you go (PAYG) withholding and super information. If you have questions you can check out the employer reporting guidelines for a full list of payments that must be reported through STP.
How To Ensure Your Bookkeeper Or Accountant Is Ready
For many small businesses in the hospitality industry you will already by using an accountant or bookkeeper. If you are not currently, this may be the right time to start thinking about the benefits of outsourcing your payroll and BAS reporting. If you are here are a few things to think about to ask prospective tax agents.
STP has been in effect for businesses with 20 more staff since July 2018, be sure to ask a prospective bookkeeper if they have set up a system for a client previously. There is also specialized training for accountants offered by many of the larger accounting systems such as MYOB or Xero. Ensure you ask if they have been accredited as STP ready.
We know that you are busy, and you don’t need another thing to worry about. Working with an accountant or bookkeeper does not have to time consuming or expensive. In fact, in the long run it can save you money by ensuring you are compliant and on top of your tax obligations.
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It is important to start thinking now about your ongoing bookkeeping needs. Now might be the time to think about outsourcing your payroll.
Contact a registered tax or BAS agent to talk to them about your options. They will be able to report through STP for you, or outsource your payroll to a payroll service provider. It is your obligation as an employer to make sure that all reporting is through STP.
Payroll service providers must be registered as a tax or BAS agent when providing a tax agent service or BAS service for a fee. This would include Single Touch Payroll.
For a list of accounting systems that are STP compliant visits the ATO website here.
360 Is STP Ready
At 360 Accounting we are a STP ready supplier, and with over 10 years in managing payroll for clients. We know the best options for any business. We are a registered BAS agent, able to assist with accounting, payroll and BAS needs. With our full-service knowledge, we are always ready to assist. Book in now for a free consultation to explore your needs. We are always happy to help.