Single Touch Payroll (STP) is here...

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…
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:
  • 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 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:
  • 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
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.

How can Murray Nankivell help me?
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:
  • 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

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.


Accounting
Taxation
Business Advisory
SMSF
Succession Planning
Financial Planning