You have counted the number of staff in your organisation, and you have checked to see whether or not your software provider will be ready for 1st July but what else do you need to do get ready for Single Touch Payroll (STP)?
As Definitiv will be ready for Single Touch Payroll (STP) before 1st July 2018, we want to make sure you are ready too.
To help you prepare, we have laid out five simple steps for you to follow to make your start to STP reporting a breeze.
Step 1: Check employee details are complete and accurate.
It may sound self-evident but not having the correct employee information is likely to cause the most significant number of issues when reporting.
The most critical attribute the ATO needs to link pay information back to an employee is a full and valid TFN. If the TFN supplied is incorrect, then the ATO will use the following details to identify your employees;
- Full name;
- Residential address
- Date of birth
A thorough review of employee details before STP comes into effect is unlikely to be feasible unless you have a small team. Therefore, one simple task could be to make sure staff all have a complete TFN assigned to their Master Record. If you are a Definitiv customer, you can check this in the Employee Listing report.
Step 2: Correctly map pay items for ATO purposes.
This step is straightforward, and as the ATO’s requirements haven’t changed with the introduction of STP, your pay items should already be set up correctly. However, if you have added new Pay Items recently, make sure they have been accurately categorised ATO purposes.
Step 3: Advise your staff to create a MyGoV account.
It is essential your employees sign up and create their own myGov account. myGov is an Australian Government initiative and will allow individuals to access online government services, such as the ATO.
As soon as your company starts to report through STP, employees will need a myGov account to access their pay and tax information.
Step 4: Inform staff payment summaries will no longer be issued.
To make things simple and straightforward, this step can be combined with step 3. As soon as STP comes into effect, Payment Summaries will no longer be a legal requirement and employers will not need to supply them to staff before the 14th July deadline.
This is the main reason why your staff need to have a myGov account. With STP, as you are reporting directly to the ATO, once you have finalised the payroll at end of financial year, employees will have direct access to their income tax information through their myGov account.
To help with the transition, Definitiv will be making “Annual Statements” available in place of Payment Summaries. The Annual Statements will be accessible to your staff through their Definitiv account once the payroll has been finalised with the ATO.
Step 5: Start reporting early.
Definitiv will be ready for STP reporting by mid-May 2018.
This provides you and your team the perfect opportunity to iron out any bumps in the road before 1st July commencement date.
By getting a jumpstart on STP reporting, it will enable you to pick up any concerns addressed in steps 1 and 2.