First, a message from Team MGAA. Despite a lockdown in Greater Sydney, your team at MGAA will continue to function onsite and/or from home to ensure seamless service during these testing times.
Now let's talk about STP. As a closely held small business, your business has been paying salary to you and your family members without having the cumbersome requirement of lodging an STP report. From 1st July 2021, this exclusion will no longer be applicable. Hence your business will need to lodge an STP report for each pay cycle, most likely once a month.
What is a STP Report?
Single Touch Payroll (STP) is an ATO compliance regulation that requires employers to send employee payroll information including salary, wages, PAYG withholding and superannuation to ATO at the same time as their standard pay run.
For further details please click here.
In short;
What are we doing to help you comply?
Are there additional costs involved?
If you are a Xero subscriber,
If you are a MYOB subscriber,
* Promotional prices and subscription costs are subject to Xero and MYOB terms and conditions.
Our cost
What should you do?
At this stage, nothing. As your accountants we will take care of this transition seamlessly.
However, if you wish to not step into STP, we can discuss options, including converting your salary to trust distributions instead. Recent experience has shown that most if not all, of government incentives (including Jobkeeper and Cash Flow Boost) were made available only to businesses who paid salary to employees (including owners of a business). Accordingly, please weigh your options and feel free to discuss with us.
Should you have any questions or concerns, please do not hesitate to contact us at your earliest.
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