As we come to the end of the financial year in Australia, it’s crucial for businesses to be across the various tasks involved when it comes to reporting their numbers. Today, we’ll be exploring the fundamentals of Single Touch Payroll, and why it is essential for business owners to understand how it works.
In the past, group certificates or payment summaries provided a breakdown of income and were relied upon for determining taxable incomes and assessing tax deductions. However, the government’s introduction of the Single Touch Payroll (STP) initiative has replaced this process and is now the mandatory system for reporting to the Australian Taxation Office.
So what exactly is STP, and why has it been introduced? Being a system where data flows into relevant government departments (not just the ATO), Single Touch Payroll aims to reduce administrative burden, as well as help create transparency around monitoring whether people are being paid regularly or correctly.
In this episode, I dive into STP and share with you the important details on:
- Understanding what exactly STP reports on;
- How STP can link to your payroll software;
- The requirements and deadlines for employers reporting through STP;
- How STP gives employees access to their own tax and super information;
- Who you can and can’t delegate your payroll responsibilities to.
No matter the size of your business or number of employees, Single Touch Payroll is now the only way to do your payroll reporting. I hope this episode provides you with clarity so that you can ensure you’re complying with your duties and setting up processes that will serve you in the best possible way.
Join us in the Accounted For You Numbers Club on Facebook here
Join my Numbers List for small business news and fun, helpful tips here
Download the FREE New Biz Checklist here
Download the FREE P&L Generator here
Check out my blog here!
Sign up for the waitlist to Bookkeeping Matters Blueprint here
Connect with Lisa Turner: