From the 1st July 2018 all employers with 20 or more employees (as of the 1st of April 2018) must report their payroll information to the ATO via single touch payroll (STP).
STP requires that each time an employer pays their employees, they will have to instantly report to the ATO information such as the salaries and wages, pay as you go (PAYG) withholding and superannuation. The information will need to be reported from software, which is ST- enabled.
At Your Business Angels we encourage all our clients to follow this and another process where we provide a percentage figure, so that every time a business banks money it pays that percentage into the ATO running balance account. This amount covers the GST and PAYG.
We also ask our clients to pay superannuation every week.
This is what we call “kicking into touch” the issues of paying PAYG and GST in big chunks every 3 months (and who can really find the money) so that our clients have their tax and cash flow under control.
The ATO comes up with very convoluted schemes when if only they would let people know they can pay tax at any time. If you struggle with tax and struggle with cash flow, there is a good chance that Your Business Angels accounting crew will have a simple and effective program for you.
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