32% of medium and large businesses are failing to meet their Single Touch Payroll reporting obligations and may be subject to ATO penalties from 1 July 2019.
Your EOY reporting is about to become a lot easier. Under Single Touch Payroll you are no longer obligated to issue payment summaries or submit a payment summary annual report.
77,399 employers have commenced Single Touch Payroll reporting. 61% of these businesses employ 20 or more staff. The remaining 39% have 19 or less employees.
Legislation to extend Single Touch Payroll to employers with 19 or less employees was passed by parliament today. The reforms come into effect from 1 July 2019 and will impact about 780,000 smaller employers.
The Australian Taxation Office is writing to 300,000 employers this month to tell them to “Start Single Touch Payroll (STP) reporting now”.
The Australian Taxation Office will write to smaller employers in November encouraging them to start Single Touch Payroll reporting. If their payroll software offers STP they can update and start reporting now.
40,000 employers have commenced Single Touch Payroll reporting. Whilst this represents the majority of businesses with 20 or more staff, it still leaves a large number yet to meet their compliance obligations.
Alarmingly only 5% of advisors have raised Single Touch Payroll with their clients. Medium businesses in particular rely on their accountant or business advisor to keep them on top of compliance requirements.
If you haven’t already, mark 1 April 2018 in your diary. This is the date stipulated by the Australian Taxation Office to count the employees on your payroll. Find out who you need to include in your headcount.