Will You Be Ready For Single Touch Payroll (STP)?
As you’re no doubt aware, the ATO is cracking down on businesses that are not paying the correct superannuation guarantee (SG) entitlement for their employees. Single Touch Payroll is one of the measures the ATO is taking to monitor employers more closely, and act accordingly when the appropriate contributions are not made.
When Will STP Start?
From 1 July 2018, all businesses with 20 or more employees will need to transition to STP. Smaller employers will be required to adopt STP from 1 July 2019.
How Will Single Touch Payroll (STP) Affect Your Business?
Currently employers can pay super monthly or quarterly with the super funds reporting the contribution data to the ATO annually.
STP requires super to be reported when each pay run has been processed. This will enable the ATO to calculate a reasonable estimate of employees’ SG entitlements and step in to require employers to pay their SG obligations if they aren’t paying the correct amounts. This will also reduce the ATO’s reliance on employees to report employer non-compliance.
The collection of superannuation contribution data through STP will also enable the ATO to display this information on the employee’s MyGov account, providing Australians with easier access to information about their superannuation via the same government platform that houses much of their taxation, medical and other records.
What Happens If A Business Breaches STP Compliance?
The Federal Government is also improving the effectiveness of the ATO’s recovery powers, including strengthening director penalty notices and using security bonds for high-risk employers, to ensure that unpaid superannuation is better collected by the ATO and paid directly to employees’ superannuation accounts.
It is expected the ATO will also have the ability to seek court-ordered penalties for employers who are repeatedly caught failing to pay their SG liabilities.
How Businesses Can Utilise PayVu To Meet STP Compliance
PayVu provides a single compliant process by automating payroll, superannuation and taxation payments and reporting those payments via STP and SuperStream, reducing the need and cost for employers to manually process wages and superannuation data via a separate payment process or gateway.
Also, with PayVu’s unique, patented technology, super contributions no longer need to pass through a clearing house before reaching the superannuation fund. PayVu automates the process of sending SuperStream payments using internet banking to transfer money to the Superannuation funds on the same day – not 4 days later! So, when you make your contributions via PayVu, you have until the actual due date to submit the payment.
How Bookkeepers Can Utilise PayVu To Help Clients Maintain STP Compliance
PayVu fully automates payroll, superannuation and taxation payments and reports these payments via STP and SuperStream. Hence, PayVu enables Bookkeepers to add a valuable Payment Bureau service to their business to manage their clients’ payments and ensure STP compliance.
What’s Coming Up…
PayVu will integrate with the New Payments Platform (NPP), which will be launched early in 2018. The NPP will enable businesses and government agencies to make faster payments, with near real-time funds availability to recipients. Payments will be data rich and fully transparent.
Regards, Robin Beauchamp, CEO