3 simple tips to understand Single Touch Payroll
Are you a small business that is ready to switch over to Single Touch Payroll? With the 30 September deadline for small businesses just right around the corner, the time has come for business owners to get serious about the switch. Single Touch Payroll is something that the ATO has rolled out in 2018 for larger enterprises, but by the end of the month, all businesses nationwide will be required to be utilising it in lieu of previous annual payroll reports at the end of the financial year. Today we have a quick look at how business owners in Australia can simplify the switch to One Touch Payroll, so read on to find out more!
1) Take Account of Your Current Payroll System
The first step towards switching to Single Touch Payroll is to take account of your existing payroll system. Are you currently utilising online payroll software, desktop payroll software or manual paper payroll processes? Depending on what you are currently using, changes that will need to be implemented will differ.
- Online Payroll Software Users
For those using online payroll software, you can count your lucky stars as you are already on the path towards a simple switch to Single Touch Payroll. If you are using online payroll software, you will simply need to check that you are able to upgrade your software so that it is STP compliant. This will ensure that your software is able to produce STP format compliant reports that will be sent to the ATO automatically on a payment to payment basis. It’s that simple!
- Desktop Payroll Software Users
For business owners currently using desktop payroll software, you will have an extra step to take. You will need to ensure that you find a service that will be able to upload all your reports, format them into a compliant format and send them off to the ATO on a payment-to-payment basis. Thankfully, there are many services available online to assist you in this process, making it a relatively pain-free experience.
- Paper Payroll Users
Lastly, business owners who are still using paper payroll will need to find a service that can digitalise all your physical copies, ensure they are in the compulsory standard business reporting format and automatically send it off to the ATO on a payment-to-payment basis. Whilst this is one or two extra steps more than online or desktop payroll software users, the task is still relatively easy and can be accomplished very quickly with the aid of single touch payroll services.
2) Outsourcing Is Always An Option
For business owners who would rather leave payroll to the experts, outsourcing is also another fantastic option. When you outsource your payroll, you can be ensured that there is a team of experts that are working hard on making sure that your payroll is handled in the correct manner and compliant with ATO’s Single Touch Payroll requirements. Payroll outsourcers have expert software, skills and talent that can handle the job for business owners who may want to focus their time and effort on other aspects of business.
3) Is There Anything Else I Have To Do?
Aside from making the necessary changes or upgrades to your payroll software, the only other thing you will have to do as a business owner is to notify the ATO when the last pay run for the year has been made.
With regard to employees, your staff will now be able to access their payment summaries, superannuation and tax details on their myGov account 24/7, allowing them the ability to access this data from wherever they are, and whenever.
There you have it, Single Touch Payroll in a nutshell. The entire process of switching over to STP is one that is extremely simple and easy to manage with the right software, information and procedures. We wish your business the best of luck in your transition!