- Janelle Redgwell
Do you employee 20+ staff?
Single Touch Payroll [STP] is a reporting change for employers. If you employ 20 or more staff ["Substantial Employer"] on 1st April, 2018, you need to start reporting on 1st July, 2018.
If you fall into this category, you will need to:
1. Count each employee on 1st April 2018 [includes full time, part time and casual employees, employees based overseas, any employee who is on paid or unpaid leave, seasonal employees who are engaged 1st April, 2018]
2. If you have 20+ employees on this date you will be considered a "Substantial Employer" and therefore MUST report through STP, even if your employee number drops to 19 or less [unless you apply for and are granted an exemption]
3. Suggestion - keep a record of who was employed on 1st April, 2018.
Do not include in your headcount:
1 Any employee who ceased work before 1st April, 2018
2 Casual employees who did not work in March 2018
3. Independant Contractors
4. Staff provided by a third party labour hire organisation
5. Company Directors
6. Office holders
7. Religious practioners
Note - when you start reporting through STP you will need to report directors, office holders and religious practitioners [5, 6, 7 above] as they will be subject to PAYG Withheld and will be issued with an Individual non-business payment summary.
For employers with fewer than 20 employees on 1st April, 2018 will be required to commence reporting one year later on 1st july, 2019.
All of the major software suppliers will be STP Compliant by 1st July 2018. It appears at this stage you will require an online software package to meet reporting requirements. Check my Blog for updates as they become available.
For more information, go to ATO Website.