The latest release of ATO, great reform of employee tax declaration! Detailed explanation of Single Touch Payroll policy-pure dry goods!
The new fiscal year is coming, ATO has also issued a new payroll policy-from the originalTax filing quarterlyBecomesReal-time tax filing, Employees’ salary and tax information will be updated in real time through STP based on each salary payment and reported to ATO. Employees can also query their salary and tax status in real time on the myGov software, which greatly reduces the workload and cost.
Salary and taxation are closely related to each of our companies and employees. Let’s see how the new payroll policy will affect us, and what preparations should be made~
【first step】The company needs to count the number of employees on April 2018, 4.
Employees included in the number include full-time employees and part-time employees.April 2018, 4 salary listTemporary workers who have worked in March, overseas employees, employees on leave or vacation (paid or unpaid) and seasonal workers (short-term workers working during peak periods); not including before April 2018, 4 Resigned employees, short-term workers who did not work in March, independent contractors, employees provided by third-party employers, company executives, public officials, and religious practitioners.
The number of employees is based on the number of labor on April 4, and subsequent changes will not affect the start date. The subsidiaries of the group company are calculated according to the total number of people in the group company.
If the number of employees is20 or more people, Need to be inDecember 2018, 7Started to provide single touch payroll report to ATO.
If20 or fewer, Needed in2019/7/1Begin execution. If you have prepared before this date, you can start early. butNo later than July 7
[Second step]Companies need to determine how to report through STP
There are currently three reporting methods:
- Available through the company’s existingpayroll software;
If you choose payroll software, the company needs to contact the payroll software supplier and ask about the time when the software provides the STP reporting function (if it is after July 7, confirm whether the software company has been approved by the ATO) and how to update the STP reporting function.
If the software supplier starts to provide STP services and the company has not completed the preparations, it can apply to the ATO to delay the start.
- Through some providing STP servicespayroll solution;
- Or through Tax agent Make reports on its behalf.
【third step】Payroll process and data verification
The company needs to check the company's existing records to ensure that the salary amount, annuity and employee information are accurate. Ensure that the company's contact information recorded in ATO is correct and follow ATO's dynamics in real time (Facebook, Twitter or LinkedIn)
【the fourth step】report submission
When the company and software are ready, the company needs to provide tax and annuity information to the ATO on or before each Paydate. After submission, this information can still be modified.
Within 12 months after the company starts to report the STP to the ATO, if it has received the ATO's notice, the company that fails to report it in time will be fined accordingly.
The company needs to sign the finalisation declaration and submit it to the ATO before July 7 each year to confirm that it has fully reported the information of every employee who used STP in the year. After the submission, there is no need to provide the payment summary to the employees, and there is no need to submit the PAYG withholding payment summary annual report to the ATO. If not submitted, the company still needs to submit these materials to the employees to the ATO every year.
【the fifth step】Content of report
The report content includes mandatory report and voluntary report, and some information cannot be reported through STP. The specific documents to be reported can be checked on the official website. The content that cannot be reported through STP still needs to be provided by the company in the payment summary and payment summary report.
What impact does the implementation of the STP policy have on individuals?
STP makes it easier for us to inquire about our salary and tax situation. Employees can search directlymyGovAnd register for an account to know your tax and annuity information and income report in real time (income statement replaced payment summary).
If you have not applied for a myGov account, you need to contact ATO to request a report. The company no longer needs to provide this information to employees.
In addition, when employees start a new job, they need to fill in in advance onlineTax file number declaration (NAT 3092) and Superannuation(super) standard choice(NAT 13080).
The above information sources are from the Australian tax official website ATO:
If you are still worrying about personal tax filing or corporate tax filing, whether you are a self-employed or a large company, we, as the highest certified Tax agent in Australia, can help you reduce and avoid taxes reasonably and legally.
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