Category Archives: STP

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20 And Under Employees? New Payroll Laws Apply To You!

“It has made everything smoother and easier and more transparent. And let’s face it, if you’re doing the right thing as most of us are, it is not an issue at all.”
Stuart Armstrong
, Velo Cycles, Carlton North

On July 1 2019, payroll reporting to the ATO became completely digital, for every business that employs at least one worker. The change has caused confusion for some, but more troubling many employers who must comply with the new law don’t even know about it.

According to News.com.au research by Intuit Australia found that half of businesses with 4 or fewer employees had not heard of STP.

Xero conducted its own survey and found that one in five small business owners don’t think STP applies to them.

Xero Australia national partner director Rob Stone said ATO figures suggested about 90,000 microbusinesses used no software at all when paying their staff.

STP affects around 700,000 small businesses, and they have until September 30 to start reporting using STP. With all of the new changes, small business owners should not worry. The one-touch payroll makes things simpler for employers to pay the proper amount of wages and super to their staff through digital systems.

Stuart Armstrong shared his thoughts, “It was all set up for me, it all just goes through Xero. With my daily job, it hasn’t affected me at all because of the support I received from 360 Accounting. What I would say to other business owners, it’s really not a big deal. Don’t worry.”

The ATO has published a list of no-cost and low-cost STP options for micro employers and would provide exemptions for some business owners.

Or it can be set up through an existing system like Xero or MYOB. If you haven’t been using a digital reporting system previously now would be the perfect time to set one up.

While it may seem like more government regulations hoops to jump through it will ultimately make sure that businesses are on top of their payroll, super and other tax obligations. This makes accessing the financial health of a business easier for the business owner, the ATO, and accountants.

If you have any questions on how these changes may affect you and your business, please do not hesitate to get in touch. We are always happy to help.

Book in a time here for a free chat!


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How To Set Up STP For Your Hospitality Business

Category : Accounting , Bookkeeping , Payoll , Services , STP , Xero

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 for Single Touch Payroll.

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.

How to Maximise Your Payroll For Greater Savings

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.