STP, TPAR, WHAT THE? Walker Hill has your back.
It’s a new financial year, and all small businesses with employees will be required to finalise Single Touch Payroll (STP) data to send to the ATO.
After filing your final pay run for the financial year, you can sign off on your Single Touch Payroll (STP) data and submit this to the ATO. You can also update an employee’s STP data after submitting it (if required).
If you use Xero for payroll, you will find a step-by-step guide on their official website.
If you use MYOB instead, don’t fret- they also have handy direction on their own website.
Keep the relevant link handy- you’ll want to get it right the first time to avoid unnecessary delays for yourself and your employees.
If you’re after Bookkeeping support (whether you use Xero or MYOB), please be sure to get in contact with Walker Hill today, as we offer packages to help you remain compliant as well as reconcile, lodge and review your accounts on a quarterly, monthly and weekly basis.
Okay, but… TPAR.
The taxable payments annual reporting system aims to create a fair and just system within which information is collected by the ATO to identify which contractors are not meeting their obligations.
You need to know about TPAR if your business provides any of the following services, even if it’s just part of the services you provide each year:
- Building and construction
- Cleaning services
- Courier services or road freight services
- Information technology (IT) services
- Security, investigation or surveillance services
The TPAR details payments made to contractors for providing services for the year. Some government entities also need to report the grants they have paid.
Contractors can include subcontractors, consultants and independent contractors, and they can be operating as sole traders/individuals, companies, partnerships or trusts.
As you should be keeping all contractor invoices, you will be able to find details you need to report about each one you have hired. This includes:
- Their Australian business number (ABN)
- Their name and address
- The Gross amount you paid to them for the financial year (including any GST).
For specifics on who is required to lodge a TPAR, and if you’re not sure if you do, jump onto the tax office website or contact Walker Hill today.
*updated on July 6, 2022
