
For businesses with 1-4 employees you can continue to report wages at BAS time until June 2021
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…
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:
- Upgrade your software and move to the cloud
- Training and upskilling with your existing or new software
- Streamline your processes
- Hand on the bookkeeping to the next generation
If I have more than 4 employees what happens if…
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:
- Register with a standalone STP software provider and manually enter the figures to this software to meet the STP requirements
- Upgrade or change the software you are using to cloud based bookkeeping, run your payroll function in this cloud software and report STP information directly to the Tax Office
I use a cashbook for my bookkeeping and manually process wages? You need to either:
- Register with a standalone STP software provider and manually enter the figures to this software to meet the STP requirements
- Upgrade to cloud software, run your payroll function in this cloud software and report STP information directly to the Tax Office
Cloud software vs. desktop based software and a cashbook
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.
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.
For example we could assist by:
- Training you to use the payroll function in your existing software
- Assisting with upgrading your current software to be STP complaint or helping you change to a new software provider
- We recommend MYOB or Xero
- Provide options on stand-alone STP software to enter your wages details if you do not want to change/upgrade the software you are using or wish to keep using a cashbook
STP rules mean your wages now need to be processed and reported as they are paid, not in bulk each quarter for BAS lodgement.