The single touch payroll (STP) revolution is here! The first step that changes the way you report to the ATO will happen on 1 April 2018.
In case you missed it, STP is set to make your life easier. Say goodbye to rolling a whole bunch of separate reporting requirements together at the end of every financial year, and say hello to an automatic, more regular report.
This reporting change is mandatory. Your payroll software will need to be STP-enabled or it won’t work.
From 1 July this year (for businesses with 20 or more employees), salaries, wages, PAYG withholding and superannuation data goes to the ATO when you process payments.
For the sake of the headcount, here’s what the ATO considers to be an ‘employee’
full-time employees
part-time employees
casual employees who are on your payroll on 1 April and worked any time during March
overseas-based employees
any employee who is absent or on leave
seasonal employees (for example, they may be harvest workers)
For the sake of STP, these are not employees:
any employee who ceased work before 1 April
casual employees who did not work in March
independent contractors
staff hired by a third-party labour hire company
company directors
office holders
religious practitioners
Staffing numbers don’t need to be complicated. It can literally be a headcount. For more information go to my website www.bookkeepingfairyperth.com.au