How Single Touch Payroll is about to impact your health practice
Single Touch Payroll - or STP - is a looming reality for your health practice alongside all Australian small businesses. To remain compliant with the ATO you will need to act now.
If your practice employs over 19 people you will already be reporting payroll information to the ATO, but, as with many Australian health practices who employ under 19 people, you are more likely to be starting this process on 1st July 2019... not too far away now.
We want to give you an important reminder of some must-knows. Please also see our very comprehensive STP hub on our Reckon website with all the information and links you will ever need.
1) What is STP?
Quite simply, this is an ATO digital initiative that began last year that will overhaul the way tax and super reporting is managed across Australia. It’s a big thing. Get across it now.
It means employers will report payments such as salaries, wages, PAYG withholding and of course super information directly from their payroll solution at the same time as they pay their employees. It will now become a tandem process. Pretty tidy.
2) 1st of July deadline for your practice!
The legislation has now passed so get your health practice on Reckon One or an STP ready accounting app immediately as we are already STP enabled and on July 1st this year everybody will be affected.
Penalties from the ATO may apply and you can't avoid this forever do get moving people. Chat to your bookeeper or accountant if you are still unsure how to act.
3) What do I need to do?
At this stage you really need to get onto approved software and consult your business advisor. If you are still operating your health practice on paper you need to move quickly as this will quite frankly no longer fly. At this stage the ATO is working closely with industry partners, tax advisers and software providers, such as Reckon, to ensure the move is smooth for all involved. You will see these features ready to use in your favourite accounting software automatically.
4) Reporting requirements
Get ready to report. Payments that must be reported through STP submission will include:
· Salary & wages
· Director remuneration
· Return to work payments to individuals
· Employment termination payments (ETPs) – not compulsory if the employee has died
· Unused leave payments
· Parental leave pay
· Payments to office holders
· Payments to religious practitioners
· Superannuation contributions (at the time the payment is made to the fund).
So get your health practice compliant today to avoid penalties and to reap the rewards of a smoother more hands-off payroll process.