1 JULY DEADLINE FOR SINGLE TOUCH PAYROLL
Regardless of whether you’re a franchisee or a franchisor, if you have 19 or fewer employees you are required to implement Single Touch Payroll (STP) by 1 July 2019.
The Australian Taxation Office (ATO) requires greater visibility into employer payrolls to ensure that they pay their PAYG withholding amounts and meet SGC superannuation obligations. The benefit to employers is also significant, saving time at the end of the financial year because they will no longer need to issue group certificates to employees.
Some franchises have already taken up the STP challenge, with the likes of Retail Zoo (Boost Juice, Salsas Fresh Mex) and Soul Origin already rolling out their STP setup.
So, what does it mean for those who haven’t started the process yet?
Here are three hot tips on how franchisors can prepare for successful STP implementation:
1. Educate, educate, educate your franchisees all about STP
2. Direct them to reach out to their bookkeeper, advisor or accountant for help
3. Ensure they have STP-ready accounting software.
Part of the education process is understanding what it all means and how it will impact your franchise. Your franchisees will need to review all their employee payroll information. You should also advise them to speak with their employees about the change and why they should set up a myGov account.
For many employers and payroll officers, getting a business STP-compliant means that they’ll need to be up to speed with system updates, and learn how to use them for STP. Their advisor can guide them through with ease if they don’t have internal resources to do so.
The FCA’s advice is: Don’t let your franchise run into trouble with the ATO because your processes or your franchisees’ processes aren’t up to scratch. Get in touch with your advisor and begin discussing your STP requirements and payroll systems today.
For an in-depth look at Single Touch Payroll, head to page 76 for an expert advice article by John Shepherd of the ATO.