Single Touch Payroll Reporting – Employers need to be alert!

SME

The Single Touch Payroll Reporting (STPR) will make tracking payments much simpler for employees and the tax office, in turn making it easier and faster to identify when an employer is not meeting its required payment obligations.

STPR will be mandatory from 1 July 2018 (for employers of 20+ employees) and July 2019 for employers of less than 19 staff (subject to legislation passing).

STPR automatically reports payments (wages, salaries, pay as you go (PAYG) withholding, superannuation etc) on or before payroll is paid to employees to enhance superannuation guarantee transparency.

We explore what STPR means for the employee and the employer: 

There will be no change to the employer’s payroll cycle or due date for PAYG withholding and super contributions. However, employers will be able to choose to pay earlier.

STPR may also mean that employers may not need to provide employees with a payment summary at the end of each financial year for certain payments that are reported through STPR. The ATO will make that information available to employees through their myGov account.

When employers report to the ATO through STPR, employees will be able to view their year to date tax and super information through their myGov account.

Employees and the ATO will be able to make sure that employers are paying super entitlements. Failure to pay reported superannuation entitlements could potentially trigger an audit by the ATO. Through the introduction of STPR, the ATO (and employees) will now have access to more timely superannuation information and will be able to act faster to address to an employer’s failure to pay employee superannuation entitlements.

How can we help?

Our team is well regarded by banks and other financiers, and we have an excellent understanding and relationship with the ATO (often a major creditor in SME businesses). We can assist you in reaching agreements with the ATO in managing unpaid tax debts and avoid any negative impact on your business.

We can also undertake an independent assessment of your business to assist you to determine the company’s financial position and identify any risks to the business and potential liability for officers of SME companies.

 

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