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27 June 2019

Changes for Employers from 1 July

Two notable changes will come into effect from 1 July for employers - Single Touch Payroll (STP) reporting and an increase to the national minimum wage by Fair Work. 

Previously, reporting via Single Touch Payroll (STP), was only a requirement for employers with over 20 employees, but from 1 July 2019 it will become compulsory for all employers. Single Touch Payroll reports your employees' wages, PAYG tax withheld and super information to the ATO each time you process payroll and pay your staff.

The information is sent to the ATO electronically from your accounting or payroll software. Not all accounting programs meet the ATO requirements so we have been in contact with those employers who will need to upgrade their software to make sure it is STP compliant from 1 July. 

STP reporting may mean a slight change to the way in which you currently process your payroll and we are in the process of contacting all clients to let them know what you will need to do from 1 July and how STP will impact you. 

The only exception to STP reporting will be those businesses with employees whom the ATO has classified as 'closely held payees'. This refers to directors or shareholders of a company, family members of a family-owned business and trustees or beneficiaries of a trust. Employers who fall into this category will have until 1 July 2020 before they need to start reporting via STP. And when they do, reporting will be on a quarterly basis, rather than as payment is made. 

The second change for employers from 1 July is an increase to the minimum nataional wage determined by Fair Work. An increase of 3% will come into effect for the first full pay run on or after 1 July 2019. If you are paying your staff based on award rates, you may need to review and, if needed, increase their current rates to be in line with the relevant award. 

You can access a downloadable pay guide from the Fair Work website here or refer to one of their pay calculators available here

 

Liability limited by a scheme approved under Professional Standards Legislation. Liability is limited in those States where a current scheme applies.   

 

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