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Australian Hospitality employers need to get ready for Single Touch Payroll

Australian Hospitality employers need to get ready for Single Touch Payroll

Hospitality businesses are being urged to prepare for Single Touch Payroll (STP), a new procedure introduced by the Australian Taxation Office (ATO) to closely monitor wages, superannuation and PAYG taxes.

From 1 July 2018, employers with 20 or more employees will need to report their employees’ tax and super information to the ATO through payroll software that is STP ready

Assistant Commissioner, John Shepherd, said STP will provide greater transparency and connect businesses to the ATO through their existing software.

“Single Touch Payroll is a game-changer for both employers and the ATO. This will allow employers to be able to meet their reporting obligations to us using their own payroll or accounting software.

“Many employers will be able to update their existing payroll software to a version that is Single Touch Payroll ready. Employers with 20 or more employees who do not use payroll software will need to choose a product that offers STP by 1 July 2018.

“Employers need to start preparing now in order to be ready for this important reporting change,” Mr Shepherd said.

The next steps to get ready for STP:

  • Visit ato.gov.au/stp and download our ‘Get ready checklist’
  • Do a headcount of your employees on 1 April 2018 to find out if you have 20 or more.
  • If you have software: talk to your provider to find out how and when your product will be ready
  • If you don’t have software: choose a product that offers STP. You can ask your tax or BAS agent for advice on choosing a product that suits your business needs.
  • Update your payroll software when it’s ready
  • Start reporting to the ATO through STP

“Some payroll software providers have asked us for more time to get ready – employers should ask if their provider has been given a deferral which will cover them, and also check when their product will be updated to offer Single Touch Payroll reporting.

**And as from 1st July 2019 STP will be required for all businesses tax reporting - regardless of employee numbers

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