Single touch payroll is the new way wages paid by businesses and a more simplified way of reporting your tax and information to the ATO. It is a legislative requirement which has been in place since July 2018 for companies in Australia housing more than 20 employees. The way it works is that it sends al of your business relevant information to the ATO as you progressively run your payroll. This improvement allows your reporting process to become more streamlined, less chance of error and improving the access for new employee information.

 

How will Single Touch Pay affect my business?

 

Incorporating Single Touch Payment, there will be a couple of things which will change in how your business is run.

1. All payment events reported in real-time: This includes salaries, allowances, reimbursements, deductions, PAYG and superannuation. This style of reporting is computed through STP enabled software.
2. Business activity statement: For all small businesses, both W1 and W2 labels are pre-filled as of July 2018. Relatively large PAYG withholders will no longer have to report their PAYG through statement activity.
3. Easily accessible information for employees: Employees will be able to view their annual payment information by using their myGov account or by requesting a copy from the ATO.
4. SGC liabilities which were previously provided to employees on their payslips will now be reported via STP. The employee’s complying superannuation fund will report to the ATO once the employer has paid the compulsory SGC liability to the employee’s chosen or default fund.

 

 

What do I need to do for Single touch payment?

 

There are some things you can do right now to prepare your business for single touch payment. One of which is by completing a full payroll audit which you can do here at DPS Accounting. Before this, it’s essential you check the following:

• All employees’employees’ details are entirely up to date
• Check employees Tax file numbers are correctly recorded
• Cross-check all employees pay rates to ensure that they are compliant with the industry standards

 

How should I count my employees for Single Touch Payment?

 

When counting employees for STP, it’s essential you include every employee as opposed to their full- time equivalent. The headcount should be precisely the same as the number of people on the company’s payroll. These will include:

• Employees on full-time
• Employees on part-time
• Casual Employees
• Overseas employees
• Any employee on absence or leave.

 

Do I need it if I am a small business employer?

Yes. New legislation forces all companies in Australia to use the Single Touch Payment method even if you employ just one worker. Luckily here at APS accounting, we have a range of low-cost plans which you can check out to find the best option for you.

 

Single Touch Payroll is mandatory for every employer in Australia, so if you’re a new business and employing staff; it is vital you understand the STP requirements you need to follow in order to remain compliant. So, if you’re unsure click here to ask an expert on how to streamline the way your business pays its employees successfully. We are more than happy to help.

Sometimes it may seem like you’re not getting good value for money from your accountant. This drawback can be a waste of money and time which could be better spent elsewhere. To get around this, below are listed five ways you can get the most out of your accountant.

Make sure it’s a good fit

If you were looking to find a business partner to invest with, or even hire a new employee; you wouldn’t pick the first candidate that came along without a thorough evaluation. Your accountant should be no different. Your accountant is going to be one of the most valuable assets your business will have, so it’s vital you conduct background checks on him/her before dealing with.

It is also essential that you do not hire an accountant because they have low fees. Your accountant is going to be your financial advisor so you want to prioritise other factors such as: what skills they possess, who have they previously worked with, how they can help you with what you need, etc. The saying still goes, ‘If you pay with peanuts, you’re going to get monkeys.’

 

Scratch each other’s back

To get good value for money when working with your accountant, it is essential that you make him/ her as efficient as possible. This contributor can be helped by performing menial tasks such as correctly allocating your business receipts and respond to messages and instructions as quickly as possible. This action will help your accountant to use that time you pay them for, for more severe and productive ways.

 

Stay organised

Whether you meet monthly, quarterly or annually; it is vital to keep your records up to date. It is essential to have your files easily accessible. This will help your accountant not to have to take time analysing your documents and data and having to make needed changes. This will also reduce the numbers of hours you’ll have to pay for.

If you are unsure how to organise your documents, then ask, and he/she will inform how to store your data in a way they can quickly work with. This will also help create a healthy professional relationship.

 

Be prepared

Nothing can frustrate accountants more than when a client turns up without crucial information that they need. This can be excused for the first meet as your accountant can then tell you what it is they expect to have in the meetings in the future.

Being prepared also means setting goals to achieve by the end of the meeting. This will help you work with the accountant rather than they work for you; this is far more productive as it means you are both on the same page with a clear understanding of what you are working towards.

 

Ask for help

This one seems obvious but is often overlooked. As previously mentioned, accountants are your financial advisors. So, to not go to them for advice would be illogical. Accountants also know a lot more about business than you think, which can range anywhere between price strategies to cost controls. So, if you are struggling with a difficulty in business, make sure you bring it up to your accountant.

They also know enough about business to give you sound advice if you decide to expand your business. This can be done by applying a standard pricing model which the account will choose to be most effective for your company. If this is the case, then it’s recommended meeting every month. If you need more help on accounting in Perth, please give DPS Accounting a call today.

 

 

DPS Accounting Solutions will be closed from Monday 16th December until Tuesday 14th January for the break. Happy Holidays!

Financial statements may be used by different stakeholders for a multitude of purposes. Owners and managers require financial statements to make important business decisions affecting its continued operations. Financial analysis is then performed on these statements, providing management with a more detailed understanding of the figures.

Financial statements are prepared according to agreed upon guidelines. In order to understand these guidelines, it helps to understand the objectives of financial reporting. The objectives of financial reporting, as discussed in the Financial Accounting standards Board (FASB) Statement of Financial Accounting Concepts No. 1, are to provide information that