Modern Australian


How Single Touch Payroll could impact businesses in the Central Coast of NSW

  • Written by News Company


Single touch payroll is a new regulation that changes the reporting system of every business to the Australian Tax Office (ATO). All Australian small businesses, including Central Coast of NSW with over twenty employees before July 1, 2018, are required to report payroll details every after pay. This has been made mandatory from July 1, 2019. Before, businesses are reporting this information only once a year. But now, they need to report after each payday. Payroll reports must be submitted electronically following a very specific format.

The Single touch payroll system contains the salaries and wages, Pay As You Go (PAYG) withholding, and Superannuation information. Since the reporting is done in digital format and in real-time, there is no need for businesses to provide their employees with the payment summary report at the end of the financial year. The ATO will provide this information. The employees will need to access their myGov account to see their payment report.

Single touch payroll is implemented with the aim to increase transparency over payrolls and also to ensure that employees meet their tax obligations. With this system, ATO can closely monitor on employers to ensure that PAYG and Super are paid on time for employees.

Many business owners felt anxious about this change, and for some, it's not that easy to adapt. However, this change is a positive one. You may need to train your payroll staff and upgrade your accounting software. Or you can work with a bookkeeper on the central coast to help you adapt to the change quickly. Not only a bookkeeper can speed up your transition, but it also will help your technology ready.

All in all, single touch payroll offers lots of advantages, especially to small business owners. Some of these are:

Simplify the reporting process

This means you will no longer spend too much time on making a payment summary report at the end of each quarter or year. With STP, business owners just need to submit the essential payroll data such as salaries, allowances, PAYG, deductions, and super. It is then the duty of the government to align this payroll information. There is no need to act at a later date since this process is in real-time. You can free up your time to attend to more important business stuff.

Less error

Mistakes in salary payment are quite a common challenge. With the help of STP, the ATO will pre-fill business payroll statements to be given to the employees. There is no need for the business to go over financial statements again, which can cause double handling. The system will help prevent human error in preparing the employee's payroll statement. This will also help business owners avoid paying penalties for getting the report wrong.

Easy access to new employee information

Employers won’t have to require their newly hired employees to submit their tax file number and superannuation information. With STP, these details can be accessed directly through myGov. They can acquire data easily without chasing employees that don’t give out that information right away.

No need to provide payment summary to employees

The figures taken from STP will be made available online by ATO for employees through myGov. This means your employees can view their payment information via online service, including their tax and super information. This will increase employees' awareness of their own tax positions. This is more helpful for those who have multiple jobs, and they can access their information in a much timely manner. Employers, therefore, won't have to generate and give out summary reports to employees, saving them time and money.

Business efficiency

STP aims to encourage businesses to digitalize. Businesses who embrace new technologies are known to grow best. While this process involves investing in new payroll software, shirting to the new and modern system will help make the business process efficient and more competitive.

Ultimately, ATO is promoting Single Touch Payroll aiming to have a smarter, automated, and more efficient Australian tax system. The goal is to make the life of both employees and employers easier.

As a business owner, you don't always get what you want, but it's essential to get what you need. Moving to STP is a great way to jump to the digital payroll system and start experiencing the power of real-time information.

Business

How to Work from Home during the Coronavirus Lockdown

The world is dealing with the worst time of the century. The pandemic Covid-19 has forced millions of people to remain indoors. Millions of offices are closed. As per a...

The Bookkeeping Boost: How To Update Your Accounting For The New Decade

Good accounting habits are a cornerstone of any business. Whether you have more money coming in or more money heading out of your business, it is essential to keep track...

Lockdown Lifesavers - 5 Strategies To Employ If The Pandemic Has Strangled Your Income

The COVID-19 pandemic has caused many negative effects on the world. The health implications have obviously been catastrophic. However, for billions of people across the globe, the financial impact has...

What should I look for in a hard hat for my workers?

It’s not just workers at height that need hard hats. Anyone working on the ground when things are going on above them needs to wear a hard hat. Accidents can...

Cash for Cars Has Become the Most Popular Way to Sell Cars During This COVID-19 Pandemic

While COVID-19 has adversely affected many businesses around the world, the Cash for Cars industry has not been affected at all. If anything, there’s been a steady increase in the...

Planning a Demolition Work is Very Important

Demolition means dismantling or demolishing a structure or its part, which is load-bearing or otherwise connected to the structure's physical integrity. This type of work comes under the construction segment...

Popular articles from Modern Australian

How to supercharge your immune system for cold and flu seasonHow to Avoid Blocked Drains and Stinky OverflowCBD on Cyber Monday: Buying the Best for You5 Beginner Projects You Can Make with Arduino Starter KitWhy Your Outdoor Living Areas Might Benefit From TilesRetirement on the Road: Planning a Post-Retirement Australian Road TripDesign a Pool to Fit Your SpaceHow to Get TEFL Certification for Teaching English in ThailandHow to Find a Lawyer in Sydney for Your Legal RepresentationHow to Pre-Prepare For Your Retirement3 of the most common beginner’s mistakes in table tennisTips to Choose Regular Wear Bands for Your Brand New Apple WatchThe Benefits of Living a Healthy LifestyleHOW TO STUDY ART WITH WIKIART.ORGHow to transform a