What Do I Need For Single Touch Payroll?

By Heaney Business Group
Single Touch

Listen to HBG Tax and Accounting’s Directory Gemma Heaney as she discusses;
What You Need to Know about Single Touch Payroll on The Small Business Talk Podcast with Cathy Smith .
Or read on to find out more.

Single Touch Payroll (STP) is a new way of reporting tax and super information to the ATO. Employee’s tax and super information is sent directly to the ATO every time payroll is processed, via a third-party provider or from your own software.

Business administration is time consuming and often complex for those not experienced in the field. The introduction of Single Touch Payroll by the Australian Government (ATO) aims to streamline the process of payroll reporting with the aim to provide real-time visibility of businesses to all small businesses with employees. It may seem a little extreme to some businesses to submit formal reports every pay run, however this process aims to improve compliance and increase transparency in the payroll process of Australian business.

So what do you need to make sure you are running your STP efficiently and correctly before the 1st July 2019 cut off?

  • How Will You Report ?
  • Who Will Report For Your Business?
  • What Software Is Best For You?

How Will You Report?

The ATO will have issued you with an Implementation Guide and Transmission Protocol, which basically means a ‘how-to guide and sending procedures’, to assist you in submitting your STP information to them.

The first step is to determine how you will report through STP. This may depend on the size of your business, and if you currently use payroll or accounting software.

You can choose one of the following options:

  • Report through payroll or accounting software that offers STP reporting
  • Ask a third party, such as a registered tax or BAS agent, or a payroll service provider, to report through STP for you, (however, you must be aware that it’s your responsibility as an employer to make sure they use STP-enabled software)

Who Will Report For Your Business?

Regardless of whether you utilise your own software or you use a third party to report, you must nominate an employee (or yourself) to be the contact for the ATO, to lodge and to authorise STP reports each cycle. This contact is listed in the STP pay events and is usually someone who understands your payroll amounts and how it is calculated, such as your accounts or payroll manager. If you choose to utilise the services of a third party, you will need to link this relationship at a role level with the ATO.

What Software is Best for You?

Find out how your current payroll software provider will offer STP reporting. This may be through an update to your existing software, or an additional service. Older software products may not be updated to offer STP reporting.

HBG Tax and Accounting can take the stress out of STP reporting and are completely STP enabled, with secure electronic platforms that ensure efficiency and compliance every time you process your payroll functions.

Take the guesswork out of payroll and call HBG Tax and Accounting today.

3 Things to Do to Get Ready to Submit Your Tax Return

By Heaney Business Group
tax time

tax timeTax time is fast approaching and you don’t want to get caught short. Start by getting support and advice from a Business Accountant. HBG Tax & Accounting offer advice when it comes to your personal tax return as well as your business deductions and has the expertise to help you on matters relating to your Individual Tax Returns.

To claim deductions against the tax you have paid, you need to have made the deductions in the relevant year and in some cases that can before the deduction is actually due. There are main areas where an accountant can advise you on the best timing to pay invoices to maximise the benefit that you will receive, this advice needs to be tailored to your specific circumstances.

Here are 3 broad areas to consider before the end of the tax year.

Keeping Your Documents in Order Using Simple Steps

  • Tax Deductions
  • Log Books
  • Claiming GST

Tax Deductions

When running a business or working as a sole trader you need to know what deductions you can claim so you can reduce your assessable income which in turn will reduce the amount of tax you have to pay. To support your deductions, you must keep the relevant tax receipts with a transaction record showing the expenditure items.

Log Books

Using a vehicle for work purposes or if your business is supplying vehicles record keeping may be required. Travel that exceeds 5,000 km each year must be documented, keeping a log book in your vehicle for yourself or staff with the odometer readings noted can be used as vehicle expenses, running costs and depreciation. Don’t forget to mark any personal use separately in your log book. Logbook records need to be kept for a continuous 12 week period and redone every 5 years. See the ATO’s Logbook method for more details or speak to your accountant.

Claiming GST

Certain items in business can be claimed for the whole amount of GST that you pay however you can only claim a portion of GST on items that are also used for personal use. For instance, if you purchase a car and you use the vehicle half the time in the business and then half time for personal use, you can only claim for 50% of the cars GST.

Needing to Know More About How to Get Your Tax Matters in Order?

The team at HBG Tax & Accounting are your local accountants in Rockingham who have all your tax needs covered; not just business, for individual tax returns and accounting matters too.

Call the team at HBG Tax & Accounting to make an appointment on 08 9594 1963 to discuss all your tax needs.

  Category: Tax
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