Worried about single touch payroll? Running a business without a payroll system that has electronic links to the ATO’s single touch payroll system? Heard about single touch payroll but are not sure what’s involved?
Currently, it is slated for the government to require businesses to report payroll details to the ATO each paycycle from 1 July 2019, rather than through quarterly or monthly activity statements.
This means businesses will have to use an electronic payroll system that integrates with the ATO system. Currently, it is estimated that 730,000 businesses will need to implement such an electronic payroll system.
Many business owners are worried about the costs, hassle, learning curve and confusion dealing with new systems.
However, Single Touch Payroll (STP) needn’t be a headache. Conversely, it can help your business. Here are seven reasons why.
1. Electronic payroll systems are quicker than manual systems and businesses that use systems that save time will be more efficient, competitive and profitable.
2. Electronic payroll systems are more accurate than manual systems, resulting in fewer errors and issues concerning payg, leave and superannuation calculations.
3. Electronic payroll systems frequently come with value-added extras that save time and hassle, such as online access for employees to download payslips and apply for leave. Other payroll systems are part of accounting systems such as Xero that save time and money.
4. It is easier to manage payg withholding tax and superannuation liabilities with an electronic system, as up-to-date reporting provides a quick, clear overview of what these liabilities are.
5. Annual and sick leave is more easily managed through electronic systems, as the systems perform all the calculations and make the leave balances clear for both employer and employee.
6. Superannuation payments can be managed quickly and easily through electronic payroll systems. Xero’s payroll system, for example, allows super payments to be automatically taken from the company’s bank account and dispersed to all employee’s respective super funds with a few clicks in a process that takes about one minute.
7. Electronic payroll systems make the year end payroll process easy, with employee payments summaries emailed to staff and the annual payment summary statement produced and lodged with the ATO in a few clicks.
In summary, STP will ensure businesses are using the latest systems that will save a lot of time and hassle, produce accurate payroll processing and have add-on benefits that allow for better employee management.
Want a hand with implementing your STP payroll system? Get in contact at angus@morrisonabs.com.au or book a time to talk at https://app.acuityscheduling.com/schedule.php?owner=15494715&appointmentType=8388217