Archived September 2019 post. Some references (such as the STP transition deadline) are specific to 2019, but the underlying prompt to review your payroll regularly still holds. With the ATO increasing its scrutiny of employer obligations, we recommended reviewing your payroll processes – including the following.
1. Single Touch Payroll reporting
Unless you had applied for a deferral or extension, all employers had until 30 September 2019 to start reporting via STP. It was worth checking you were also taking advantage of STP benefits such as the employee onboarding tools.
2. Recording personal and carer’s leave
A recent employment law update changed the way personal and carer’s leave was recorded. Employers needed to record accruals in days rather than hours, and to pay employees for such leave based on their rostered ordinary hours rather than a notional 7.6 hours. A good prompt to review the awards that apply at your workplace.
3. Review your super obligations
While there was an amnesty on STP penalties during the transition, there was no concession for Superannuation Guarantee payments. Non-compliance could mean losing the tax deduction for super contributions, paying extra interest and administrative penalties – and directors can be made personally liable for company or trust obligations. If you had employee superannuation debts, the advice was to act early rather than wait for an ATO ‘please explain’ letter.
4. Do you provide fringe benefits?
Fringe benefits are more than just cars – they can arise from staff discounts on your products, lunches and functions, providing laptops and phones, or paying expenses on behalf of employees, and even when a supplier provides benefits to your staff. There are exemptions for benefits structured correctly, so it’s worth checking how well you comply. If you have any queries about your payroll obligations, get in touch and we can help.