As of 1 July 2019 all businesses will be required to report their staff payroll and superannuation (super) details to the Australian Tax Office (ATO) digitally, via a Single Touch Payroll (STP) system.
The ATO's STP project is designed to streamline all payment information by requiring companies to lodge details of payroll when they run it, rather than months later. This requirement may not affect your early learning service(s) if you are already reporting this information digitally via a payroll software system such as MYOB, Xero or Ceridian.
However tax experts say the next few months will be critical for getting pay processes in order for those businesses not yet using digital payroll systems.
While many Australian businesses already using digital software are aware of the single-touch policy, those still operating older forms of payroll may not be prepared to change their ways. There is a real concern that many small businesses have no idea that this new ATO requirement is coming.
If your early learning service does not use digital software to process staff pay and super, you will need to get ready for this change in the next 2-3 weeks.
The good news is the ATO has promised it will not penalise businesses for mistakes within the first year of using the digital payroll systems.
What are my options?
The ATO reports that a range of no-cost and low-cost Single Touch Payroll (STP) solutions have been made available in addition to existing commercial STP solutions.
The no-cost or low-cost solutions have been developed for micro employers (those with one to four employees) who need to report through STP but do not currently have STP ready software. These solutions may include mobile apps, simple reporting solutions and portals. You can read more about these here.
Alternatively, you may choose to use one of the many commercial software solutions on the market. We would advise you to ask around and look at the reviews for each supplier before making a decision.
If you have any queries about this ATO requirements, ACA recommends that you contact your accountant or the Australian Tax Office.