An initiative, Single Touch Payroll (STP), launched by the Australian Tax Office (ATO), offers real-time visibility over the timeliness and accuracy of the payroll process of the company. It is designed for streamlining the reporting of tax and superannuation, administration of employee payroll, etc. The payroll services Perth are aware of how the process goes on and if you want, you can hire them.
What does STP apply to?
STP applies to return-to-work payments to employees, unused leave payments, termination of payments to individuals, parental leave pay, payment to employees, like wages, or salaries, other payments under the Seasonal Labour Mobility Program, etc. Other things included in Single Touch Payroll are reportable fringe benefits, payments made to the contractors, “reportable employer superannuation contributions”.
How can STP help business?
STP has been doing the rounds for a long time, but business owners are not sure of it. Here are some of the things that you should know about STP.
Streamlining The Process Of Reporting
The STP tries to align in reporting obligations regarding payroll processes. It allows business owners to submit information related to payroll, like allowances, salaries, deductions, etc. As a result, it avoids deductions for action at a later date. In short, STP streamlines the process of reporting for businesses.
Decreasing Payment Summaries
The ATO can easily track the figures collected from STP submissions, and it will be made available to people via online services. It indicates that the employees can access the details online, such as year-to-date tax, superannuation information, etc. It means that employers do not need to distribute payment summaries individually to employees. Hence, the entire process helps in saving a lot of money and time.
With the help of STP, the ATO can pre-fill business activity statements for employers. It reduces the chances of human errors, which happens while going over finances and eliminating double handling. It helps in eliminating penalties that you must pay for including wrong data. The outsourcing payroll service will help to eliminate errors. It means you do not need to pay any extra amount.
Improving The Access To New Employee Information
Employers can collect superannuation and tax file number information online for new employees. It means you do not need to chase the employees to collect information. It becomes helpful when some employees do not provide information even after asking for so many times.
By introducing STP, the Australian Government indicates that they support digitalization. It shows that employees adopting it embrace the latest technologies, which helps in performing them better. Also, it means that you have to invest in STP-enabled software, but in the long-run, it will turn out to be fruitful for the business. The best application will help in creating efficiencies and maintaining a competitive edge and the best payroll management services can help you.
Easy And Quick Access To Financial Transactions
With STP, it becomes easy to access any financial transactions in detail. It shows how smartly a company can work in today’s time. It also provides smarter and insightful business decisions. In short, it makes all the processes faster and eliminates double work.
Better Decision-making Process
The STP helps businesses to make better decisions in terms of investments, upgrading a piece of equipment, hiring a new employee, etc. It will affect the overall situation of how the company works and where the investments must be made. Not only that, but it also helps in getting the work done within the time. It gives you more time to look after other activities in your business.
Cost And Time Saving
Reducing paperwork and going digital are the most important things in payroll processes. With STP, the need to manually entering the data is eliminated. It eliminates the need to hire professionals required to do all such activities. Therefore, money can be saved, which will improve the health of the business.
Assisting With Transparency And Compliance Management
STP helps in maintaining transparency as all the information is available online. Both employers and employees will have clear and real-time information. It eliminates the chances of fraud activities as well.
It’s time for a smooth transition!
Presently, if you are using an accounting tool, and wish to move to STP, look for the best bookkeeping services near you. By working with the bookkeeping services, you can understand how the process goes and speed up the compliance obligations. The right service provider will offer a low-cost STP solution, and they will guide you through queries. Also, do not forget to inform your staff when you are implementing a new system. With that, they can also take the perks associated with it. The success of implementing technology is about people using it.
How STP works for employers?
Wages, salaries, and superannuation details are important and need to be sent to ATO every time an employer to pay its employees. Various methods of reporting are there, like
- First, you can look for an STP-enabled payroll software provider that sends a report to the ATO.
- Secondly, you can look for a third-party provider who works as an external person. He or she will report all the details on your behalf of you.
In case you do not use payroll software or accounting offering STP, you have the option to apply to the ATO and fill up the online form and proceed.
Get expert help
In case you are facing any difficulty, the experts in Perth are always there to guide you at every step. You can book an appointment with them at the earliest and proceed. They are well-aware of the Single Tough Payroll system and will explain to you why you should consider it. The system completely changes the way the employers report tax, payroll, and superannuation. Therefore, there is no confusion, and the organization will have real-time reporting.
The pointers listed above can be achieved only if you consider adopting STP. Embracing new technologies indicate that you are supporting digitalization and maintaining transparency.