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For businesses with 20 or more employees, reporting through Single Touch Payroll (STP) has begun as the next step in streamlining payroll reporting.
From 1 July 2018, businesses with 20 or more employees needed to have commenced using STP-enabled software to report tax and super information to the ATO.
The first year from 1 July 2018 is a transition period, but it is still important to understand the impacts of STP and take steps to ensure you can meet all ATO requirements for mandatory STP reporting.
Subject to legislation being passed in Parliament, businesses with 19 or fewer employees will need to comply with STP from 1 July 2019.
Here’s a quick recap of STP reporting and new enhancements that may help you.
STP is a streamlined way of reporting to the ATO by sending employees’ tax and super information direct to the ATO from your payroll solution each time you pay your employees.
The ATO offers resources to help employers with STP reporting.
The first year of STP will be a transition year and penalties may not apply if you make a mistake.
QSuper will soon be offering STP reporting through our super contributions portal, Employer Direct. This enhancement will allow employers to meet both their SuperStream and STP reporting obligations through a single platform.
To learn more, speak with your Relationship Manager today or contact our Employer Services team on 1300 472 282 or firstname.lastname@example.org
Through STP, you should be sending your employees’ payroll and super information to the ATO from your payroll solution each payday.
Your payroll cycle does not need to change. You can still pay your employees weekly, fortnightly or monthly.
Your payment due date for PAYG withholding and super contributions also does not need to change. However, you can choose to pay earlier.
For Queensland Government and default employers, your QSuper pay cycle still applies. For non-default employers paying to QSuper, follow your existing rules. This may be the due date listed in your Enterprise Bargaining Agreement or 28 days after the end of the quarter.
You may not need to provide your employees with a payment summary at the end of financial year for certain payments you report through STP. The ATO will make that information available to employees through myGov. However, you should consider your own internal change management and communication plans for introducing this change.
The STP reporting date of 1 July 2018 applied to businesses with 20 or more employees on the payroll on 1 April 2018.
If your employee number has dropped to 19 or fewer since 1 April 2018, you may continue reporting through STP.
If your head count was fewer than 20 employees on 1 April 2018, you do not need to start STP reporting in 2018-19 even if your employee numbers rise during the year.
The Government plans to include employers with 19 or fewer employees from 1 July 2019, subject to legislation being passed in Parliament, which means you may need to do a head count again on 1 April 2019.
If you are part of a company group, the total number of employees employed by all member companies of the wholly-owned group must be included in the head count.
Talk to your software or payroll provider
Some payroll software providers have asked the ATO for more time to get ready. Check with your provider to see if they have been given a later start date, known as a deferral, by the ATO.
Questions to ask your payroll may include:
Adopt a payroll solution that offers STP reporting
If you had 20 or more employees as at 1 April 2018 and have not used a payroll solution, you will need to choose one that offers STP and is ATO compliant.
When you choose a provider, make sure you know what costs are ongoing and what are one-off fees.
Talk to your accountant
If you’re a non-Queensland Government employer, you can talk to your accountant about the best product to suit your needs. You can also ask your accountant to report to us through STP on your behalf.
Super funds also had to make changes to the way they report to the ATO from 1 July 2018. QSuper will be required to report contributions we receive as they occur (known as event-based reporting). This will give the ATO clearer visibility over non-payment or late payment of super guarantee contributions.
Find out more
QSuper has taken all possible care when preparing this material, but cannot guarantee the accuracy of the information. QSuper takes no responsibility for any errors or omissions.
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