Single Touch Payroll – what is it and who is it for?
We have many long term clients of the Practice. Some of them are farmers based in surrounding/regional areas of Brisbane, Gold Coast and Sunshine Coast.
Other clients run family businesses in construction, manufacturing and light industry, some are contractors and self employed entrepreneurs & business owners who employ sub-contractors, seasonal or casual workers as needed.
Many of these business work hard, rain, hail or shine. Their business operations and cashflow are based on demand & supply, tenders/contracts, planting or harvest periods as in the case of the farmer.
Many of these clients still run their business operations how they have for many years (some over 20!) paying manual wages and using a 24 column green cash book or Excel spreadsheet. We see them each financial year at tax time and we calculate business profit as recorded by the business owner or ‘pay person’.
Earlier this year, changes were made to payroll rules and how small business pay wages. Single Touch Payroll (STP) is compulsory for all employers and small business who pay wages from 1st July 2019.
There is no optional opt-in. This means that any small or micro business with under 20 staff, or anyone who pays wages to employees/contractors or to themselves, need to comply with the new rules.
The STP will force all business to move to a digital option for the recording of gross wages, tax Witholding and Superannuation.
Recent reports suggest that 10 out of 11 small businesses including farmers will not be ready by the due date. This is alarming. However we are here to help and it need not be an expensive exercise. We have partnered with local bookkeepers and business consultants to provide options for your business and to help you become compliant in time.
We recently ran an information seminar near our Springwood location but appreciate not everyone could make the date/time and location. We will be contacting all our clients who the STP changes affect and please contact the McCarthy and Co team if you want to learn more about STP compliance and digitising your books and records.