Getting your business ready for Single Touch Payroll Reporting
A change to single touch payroll is coming. Single Touch Payroll Reporting (STPR) has been introduced by the Australian Tax Office (ATO), which means most businesses will need to update their payroll systems in order to report to the ATO in real time.
From July 2018, there are new requirements will come into effect, which will significantly change how businesses across Australia can report and engage with regulators.
In this series, we will explain exactly what Single Touch Payroll Reporting is, when it's coming, and the impact it will have on your business. Firstly, we look at what STPR is and how it will affect your business.
What does this mean for my business?
If you’re a business with more than 20 staff (headcount, not full-time equivalent), there are changes to your payroll reporting that will impact your business. You will be required to provide your payroll information in real time which means if you use a reporting system the ATO will collect this data. If you aren’t using this kind of system, you’ll need to adopt one before 1 July 2018.
In addition to this, compliance checking will also be completed in real time, which means you’ll see changes to how the ATO contacts your business if any issues arise.
The change could also affect the way payroll information is shared between other agencies. Meaning that the ATO could share real time payroll data with an agency like Centrelink, instead of doing it a year after the fact.
Superannuation payments will also be affected by the new STPR system. For the first time, the ATO will be able to match an employee's superannuation fund payments to a payslip immediately, rather than waiting for an annual report from an employer with no guarantee of the money actually making it to superannuation accounts.
Steps to begin your STPR transition
CCIQ's friends at BDO advise three steps when implementing your new payroll solution:
- Have detailed conversations with your accounting software provider/s to confirm whether the current payroll processing arrangements will support the changes
- Conduct a risk review of your current payroll procedures, including PAYG, superannuation, car allowances and the timeliness of payments
- Review and monitor your HR processes to ensure employees are being treated fairly and paid correctly
You should understand how this change applies to your organisation and begin planning your roll-over to this new reporting requirement.
About the contributor:
Jason Daniels is a partner of Business Services at BDO in Brisbane. He is a qualified accountant, financial manager and business leader with more than 20 years’ experience. His expertise lies in all areas of financial management, especially mergers and acquisitions, business planning, forecasting, restructures, systems as well as process and operational improvement and software development. He holds a Bachelor of Commerce Degree, is a Member of Chartered Accountants Australia and New Zealand.