As we are well into the first quarter of the new financial year we have some important updates for you from the ATO. They include the Phase 2 rollout of Single Touch Patroll and information on Superannuation Guarantee obligations.
Single Touch Payroll Phase 2
Single Touch Payroll (STP) is being expanded to reduce the burden on employers who need to report employee information to multiple government agencies.
By now most businesses will be well versed in using the first phase of Single Touch Payroll (STP), an ATO initiative designed to streamline the reporting of employee pay, tax withheld and superannuation with the help of software providers.
The original start date for STP Phase 2 was 1 January 2022. However the customers of most software providers have been granted a deferral until 31 December 2022.
While this allows you time to make relevant changes we recommend you start planning for this transition now.
If you’re unsure about updating your payroll data for STP Phase 2, and would like advice or someone to guide you through this process for your business, get in touch with our expert team on (07) 5536 3755 or contact us here.
You can read more about STP Phase 2 through these following links.
Employer Superannuation Guarantee Obligations
As part of its ongoing compliance activities, the Australian Taxation Office (ATO) continues its audit scrutiny of compliance with the superannuation guarantee (SG) obligations by employers.
The employer has 28 days after the end of each quarter to make this payment. If the employer fails to pay the employee’s super by the due date, then this is when the Super Guarantee Charge is applied.
We recommend paying the SG each month rather that waiting until the end of each quarter. This can be better for cash flow as you are avoiding a large lump sum at the end of each quarter. And then if you are late at the end of a quarter Super Guarantee Charge applied by the ATO is reduced.
For more information, read the article below:
Feel free to get in touch with our expert team on (07) 5536 3755 or contact us here about the latest new financial year updates. We are experts in Xero plus we can help to make sure your superannuation guarantee obligations are up to date.