What Is Single Touch Payroll: Things You Should Know

To begin with, single touch payroll is a recently introduced mandatory regulation for reporting payroll information to the Australian-Taxation-Office. This criterion has entirely changed the way small organizations are reporting their payroll activities to the ATO. Earlier, businesses would report these pieces of information only one time a year. Now, the scene has completely changed. Each of the reports has to be submitted digitally which is sent by the ATO with each passing payday. Most importantly, you need to submit these reports by using a specific kind of format. 

How does a Single Touch Payroll work?

Basically, an STP or Single Touch Payroll optimises a cloud accounting software program integrated with a high-end internet connection. The primary objective of payroll service Perth is to submit data to the Australian Tax Office online. Employers will now have a way better mode of receiving information that also on time. They can streamline and automate their accounting data and procedures, making them more up-to-date and flawless. As a result, employers can now make way more informed decisions related to their business than before. Some of its compelling merits are:

• Access of employee to pay-slips.
• Impeccable payroll.
• There will not be any EOFY summaries any longer.
• Single-click compliance etc. 

What’s more, you can share crucial data with the Australian Taxation Office too via STP.

The Procedure of Single Touch Payroll and its Compliance

Before, businesses needed to finalise the records of their payroll at the end of every financial year. Subsequently, they were required to produce a payment summary for every employee. Besides, they also needed to make a payment summary annual report for the Australian Taxation Office. With the introduction of Single Touch Payroll (STP), the need to complete these two tasks has been eradicated. STP requires you to submit reports which are compliant in line with the protocol of the Australian Taxation Office. Given below is a clear definition of the same pertaining to three individual actions. These include the following: 

• In case you use pen and paper or that of spreadsheets: In this case, you should look for a service so as to transform the data properly. Make sure that they get converted into a digital report format that is outright compliant by nature. 
• In case you use a payroll software program of the desktop: In this case, you will need to look for a relevant service accordingly. This particular service should be able to upload all your pertinent payroll reports effectively. Subsequently, ascertain that they get transformed into the required version of the ATO. Most importantly, your chosen service should submit the said reports effectively to the ATO on your behalf. 
• In case if you opt for an online software program of payroll: An avant-garde online software program of payroll should be able to tackle the entire task effectively for you. All you need to ascertain is that it is creating reports which are absolutely compliant in accordance with the protocol of the ATO. 

The best option to opt for would be to hire a qualified bookkeeper or accountant to complete the aforesaid tasks successfully. To attain even better results, make sure that you hire a professional who is acquainted with the various online payroll systems software programs.

Benefits of Single Touch Payroll

As already said, businesses required to accomplish group certificates and payment summaries before. With the commencement of Single Touch Payroll, businesses no longer need to complete these tasks at each financial year’s end. There are benefits aplenty when it comes to reaping the most out of Single Touch Payroll.  STP software conventionally sends superannuation and tax information automatically to your employees. Employees can equally benefit from the Single Touch Payroll. They simply need to have a personalized myGov account, that’s all. 

Employee Advantages!

Employees will be able to access the crucial information related to their superannuation account, PAYG withholding and salary etc. Besides, they need not await their valuable taxing data until the arrival of EOFY. The regulation of Single Touch Payroll commenced from 1st July 2018 onwards for businesses having twenty workers or more. The regulation which commenced from 1st July 2019 applies to all kinds of businesses. So, to report notable payroll information to the ATO, make sure you optimize the regulation of STP in the best possible way.