STP for employers with less than 19 employees starts on 1 July 2019 and requires employers to report specific wages and superannuation information online to the Australian Tax Office within 7 days of paying employees.
For example if your pay cycle is fortnightly, you need to process your payroll at the end of the fortnight and within 7 days report this information to the Tax Office using a STP compliant method.
If I have 1-4 employees what happens…
You can continue to report your wages each quarter when you lodge your Business Activity Statement or Murray Nankivell can do this if we lodge your BAS.
However, given the changes being made and the advances in technology it is a good time to review your bookkeeping methods and take the opportunity to:
If I have more than 4 employees what happens if…
I use cloud software already to process my wages and superannuation?
You are STP ready! You will just need to connect your software to the Tax Office. You will then be able to lodge your STP information each time you generate a pay run in your software.
I use cloud software for my bookkeeping but process wages manually?
You will need to set up the payroll function in your cloud software and enter your employee and superannuation details. Then connect your software to the tax office to be STP ready.
I use desktop software or Banklink for my bookkeeping and wages? You need to either:
I use a cashbook for my bookkeeping and manually process wages? You need to either:
Cloud software vs. desktop based software and a cashbook
Existing cloud bookkeeping software is ready to go but if you are using desktop software or a cashbook you will need to update your bookkeeping software and change your approach to meet the new requirements.
NOW is the time to start investigating what STP means for you
Recent years have provided significant advances in bookkeeping technology. These changes, coupled with new Tax Office regulations, means that you will need up to date cloud based software to ensure your bookkeeping can be done efficiently.
What cloud software does Murray Nankivell provide training and support for?
We can provide links for you to follow for other software providers if required.
How much will this change cost me?
This will depend on your current use or not of cloud based software. An upgraded subscription may be required or you may need a completely new set up – contact us so we can tailor an estimate to your particular situation.
It is not our intention to process your payroll each pay cycle (e.g. weekly) if you are not already doing this in your existing software. This would be cost prohibitive and inefficient for you and us. We are happy to assist you in upgrading your software, provide training and any other assistance to get you ready for to process your payroll and meet the STP requirements from 1 July 2019.
For example we could assist by:
If Murray Nankivell is currently processing your wages in bulk (for BAS lodgement) you will need to discuss with us the best way forward.
STP rules mean your wages now need to be processed and reported as they are paid, not in bulk each quarter for BAS lodgement.
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Investngro Pty Ltd ABN 53 113 102 695 trading as Murray Nankivell Financial Planning, is an authorised representative of Count Financial Limited ABN 19 001 974 625 holder of Australian financial services licence number 227232 (“Count”). Count is owned by Count Limited ABN 111 26 990 832 of GPO Box 1453, Sydney NSW 2001. Count Limited is listed on the Australian Stock Exchange. Any taxation and accounting services are provided by Murray Nankivell and are not within the authority Count. The information on this web site is not financial product advice and is provided for information only.