Single Touch Payroll
Single Touch Payroll (STP) changes the way employers report their employees’ tax and super information to the Australian Taxation Office [ATO].
Using payroll or accounting software that offers STP, employers send their employees’ tax and super information to the ATO each time they run their payroll and pay their employees.
Employers with 20 or more employees
STP reporting started gradually on 1 July 2018 for substantial employers (those with 20 or more employees).
Employers with 19 or less employees
The extension of Single Touch Payroll reporting (STP) has now passed through both houses of Parliament. This means employers with less than 20 employees will also now need to comply with real-time digital reporting from the 1st July 2019.
It’s important to note that micro-employers (1 – 4 employees) can report quarterly via their tax agent for the first two years, however the ATO encourage the transition sooner rather than later where possible.
Exemptions to STP reporting will also be available if you have no internet or an unreliable connection.
Xero and most other software providers already offer STP however a setup process is involved. If your not sure if your software is STP ready
Do you provide benefits to your employees?
Fringe benefits tax (FBT) is payable on certain benefits you provide to your employees or their associates. These benefits are in addition to, or part of, your employees’ salary or wages package.
FBT is separate from income tax and is calculated on the taxable value of the benefits provided to employees.
Examples include providing your employee (or someone close to them) with:
- motor vehicles for private use
- holiday accommodation
- concert tickets
- Meals & Entertainment
Some benefits are exempt or receive concessional treatment, The FBT year ends on 31 March. If you’ve provided any fringe benefits since 1 April 2018, you need to:
- calculate your fringe benefits taxable amounts
- lodge and pay your FBT return by 21 May (or lodgement may be later if you use a tax agent).
If you believe you may have provided benefits to your employees contact your Advisor at Prime who can advise you which benefits provided attract FBT, assist with any Registrations calculations and lodgement of your FBT Return.
Written by Anthony Bowles