This is an informative article! However, this article is not going to tell you how STP works and give you all the nitty-gritty details, if you need those, head on over here for a full explanation. What this article will do, is explain what you need to do as someone with an interest in the business. As a quick synopsis, Single Touch Payroll (STP) starts on the 1st of July 2018 for all businesses who employ 20 or more staff members, and requires them to report automatically to the ATO any wage and tax details of all employees. Come the 1st of July in 2019 however, it’s going to include ALL businesses in Australia, regardless of how many employees you have. You’re going to want to be ready, because you need to do this.
That’s all well and good, but how is it going to affect you, the employee, you the business owner, and you the bookkeeper?
- If you’re an employee of a business, or you work in a number of jobs, you’re in luck. It doesn’t matter who you work for and how many people you work with, you don’t need to anything for STP. You can certainly read about it, stay informed, and make sure your employer knows about it, but apart from that, everything from your end will work as it already does. You will still get paid the same (unless you ask for a raise), and you probably won’t even notice a difference unless you ask one of your managers. So just sit back, relax, and keep doing your job. Well done you!
- If you’re the business owner, you do need to know what’s going on. At any time after the 1st of April 2018 if you have more than 20 employees, including you, you will need to use STP from the 1st of July 2018. Even if you don’t have 20 employees now but are hiring or will be looking to expand after this date, you have to start using it as soon as you cross that 20 employee threshold. To be safe, if you’re a growing business, you should start planning for it. If you do have 20 employees, you need to get onto it so that you’re ready, and there’s no stress when the time comes. Have a business with fewer than 20 employees and want to use STP? Go right ahead, there’s nothing stopping you. Once you start using STP, you’re locked in, kind of like Hotel California, you can never leave.
- If you’re the bookkeeper, run! Only kidding, you don’t need to stress too much either. You do need to know about STP, and you should be informing your clients about what it is, if they need it, how to use it and whatnot. If your client is supposed to use it and doesn’t, there could be a lot more work involved to get them on board, and it might create some headaches. Now is not the time to let your clients just cruise along and assume that they know what’s expected of them. Being proactive will assure them you know what is coming and will be able to help them with question they might have. Maybe they are full-invested in it and know more than you do, which could mean they can’t trust your services. If nothing else, just simply reaching out to your clients and sending them the ATO issued fact sheets, or the link to our website can be really helpful. If they’re reading this article, you might have been caught out, oops, sorry.
At the end of the day, Single Touch Payroll is going to affect every business in Australia eventually, meaning that every employee will be affected by it, even if they’re not aware and don’t notice any changes. If you have any questions or would like to know how Accentis Enterprise is going to handle STP, contact our support team.