Single Touch Payroll Extends to all Businesses – PaysOnline Managed Payroll is Ready
Single Touch Payroll will officially be rolled out to employers with 19 or less staff from 1 July 2019 as legislation passes in both houses of federal parliament.
The Treasury Laws Amendment (2018 Measures No. 4) Bill 2018 secured passage on Tuesday 12th February after it was referred back to the House of Representatives last December due to proposed amendments to other measures contained in the same bill.
This means that all employers, including those with 19 or less employees will have to report under Single Touch Payroll (STP) rules from 1 July 2019. Substantial businesses (those with 20 or more employees) began reporting under the STP system on 1 July 2018.
According to ABS data, there are approximately 781,908 businesses with 19 or less employees. This equates to about 36.8% of Australian businesses. Broken down, microbusinesses with one to four employees account for 584,744 of that total, and the remaining 197,164 are businesses with five to 19 employees.
Small and microbusiness need not worry about the change, as the ATO pre-empted the passage of the legislation, contacting small business clients and informing them that they can start reporting if they have STP ready software. PaysOnline as a managed payroll solution is single touch payroll ready and have been lodging reports for substantial employers since July 2018.
The ATO Commissioner Chris Jordan has asked business leaders not to panic and has pledged to ease micro businesses into the STP regime. He states that they will not be forced into purchasing payroll software, with a number of alternate options set to be available, including the option of allowing their registered tax or BAS agent to report quarterly, rather than each time they run their payroll. Exemptions to STP reporting will also be available to businesses that have no internet or unreliable connection.
For a managed payroll solution that is Single Touch Payroll ready – contact PaysOnline today.
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