The ATO, ‘Superannuation – a system in transition’ presentation, given by James O’Hallaron, deputy commissioner, superannuation and employer obligation, at the 2019 August ASFA National Policy Roadshow, highlight the unprecedented visibility the tax office now has because of the Single Touch Payroll (STP) rollout.
“The ATO has greater visibility over the super guarantee system than it ever had before.” Mr. O’Hallaron said.
“The immediate benefit to individuals who are being underpaid their super entitlements is apparent, this visibility and our ability to proactively engage with employers who don’t meet their obligations means we can better ensure a level playing field for business, particularly small business” he added.
The ATO is focused on using STP data to make it easier for employers to comply, and harder not to comply, with their PAYGW obligations. STP gives employers visibility around their cash flow, enabling them to make decisions that can help drive their business forward.
As the tax office gains increased assurance in the data and the conclusions that can be drawn from it, they’ll use it to move sensibly into proactive ‘nudges’ and warnings to employers; for example, directly notifying or nudging employers that have been identified as not having paid Superannuation Guarantee (SG) to their employees per quarter as required.
In fact, ATO recently piloted this approach with a small sample of 85 employers who were contacted regarding their late payment of SG. After the ATO’s contact, some 50% of these employers then lodged and paid the outstanding SG to the ATO for their employees.
The ATO intends to expand this approach to those employers who haven’t paid SG to their employees within 30 days after the end of the reporting quarter.
The ATO currently have over 314,000 employers (including over 243,000 small businesses) reporting through STP. Employers are now routinely reporting each pay day to the ATO on behalf of over 9.4 million employees. This is approximately 78% of the estimated 12 million employees in Australia.
This still leaves a lot of micro and small business that still have to get set up for STP. Easy Payslip has developed a fit-for-purpose payroll app and website solution, that will take ten minutes to setup and is a fraction of the cost of the large accounting packages.
What is fortunate is that there is still time to get set up and become compliant. To find out more visit EasyPayslip at www.easypayslip.com or visit your Android or IOS app stores. Click here to get started with a 30-day free trial.
(Source: Superannuation – a system in transition)