Switching to Single Touch Payroll (STP) with ease.Article by Emma Warren
From 1 July 2019, all employers were required to start using Single Touch Payroll (STP) as a means to pay employee salaries and super.
By now, it is expected that all Australian businesses will have made the switch to STP with STP compliant software.
If you are yet to make the change, it is likely that you will be contacted by authorities and questioned as to why.
For some Australian employers, it is possible that their current accounting or payroll solution was STP suitable. However, others have needed to choose new, STP enabled payroll software.
There are a number of STP compliant programs and software available, including Rumpel.
What is STP software?
STP software runs your payroll and pays your employees as per normal, plus it additionally sends a report to the Australian Tax Office (ATO).
The report to the ATO will include information about salaries and wages, PAYG withholding, and super liability. With this data, the ATO can better understand whether you are meeting your super guarantee obligations and other employee entitlements.
According to most Aussie businesses, STP makes their bookkeeping and payroll an easier and faster process.
With STP, you can still choose whether you would like to pay your employees weekly, fortnightly or monthly. Also, your individual employers can still have different superannuation funds.
Notably, instead of providing your employees with an annual income statement at the end of each financial year, they will now be able to access their income statements online via their myGov account. This income statement can then be used to lodge a tax return.
Is Rumpel STP compliant?
Our expert account managers at Rumpel are kept routinely up-to-date with changes in small business tax law. Therefore, we were well aware of the nationwide change to single touch payroll, and we are equipped to deal with the switch.
When working with Rumpel, you needn’t worry about your bookkeeping and accounting. We are an end-to-end accounting solution that can take care of all your bookkeeping needs.
Register to have an initial chat with one of our team members today.