Category: Commercial Law

19
Aug

5 things you need to know about Single Touch Payroll

It’s been described as the biggest thing since the GST, however many business owners are still unsure of single touch payroll (STP). Indeed, it was recently reported that 70% of micro-business owners say they don’t know what it is and 55% have “little knowledge” about becoming compliant.

However, ignorance is not bliss when it comes to workplace compliance, as celebrity chef George Calombaris discovered the hard way. He’s been forced to pay a $200,000 “contrition payment” and speak on the importance of workplace compliance at industry events after his restaurant empire underpaid workers to the tune of $7.8 million. He’s also had a taste of the scandal and reputational damage that can flow from such an event.

So, let’s not stick our heads in the sand. Here are five things you need to know about the STP changes.

 

1. The basics: what is Single Touch Payroll?

STP is a new way for employers to report tax and superannuation information to the ATO. Each time you pay your employees, you also report payroll information, including salaries and wages, pay as you go (PAYG) withholding and super information.

 

2. What is changing?

For the first time, you’ll report super liability information – through STP. Super funds will report to the ATO so it will know when you make payments to your employees’ super fund.

This change is intended to help businesses streamline their payroll reporting processes and should save time when it comes to reporting requirements. It will benefit employees by providing greater transparency around super entitlements and payments.

 

3. When do the changes start?

Large employers, those with 20 or more employees, should already be reporting through STP.

If you’re a smaller business, with 19 or less employees, you need to start reporting through STP any time before 30 September 2019.

If you’re an extra small business, with less than four employees, you may be able to access other options, such as quarterly reporting through your registered tax or BAS agent.

 

4. What do I need to do right now?

Check that your payroll, accounting and business management software provides for STP – most do.

If you have four or less employees but do not currently have STP-ready software, investigate these no-cost and low-cost STP solutions that cost less than $10 per month.

When you start reporting, you run your payroll, pay your employees, and give them a payslip as per normal. There’s no need to make any changes to your pay cycle.

Your STP-enabled payroll software then sends the ATO a report which includes the information required by the ATO, including super information. You can read more about the payments that must be reported through STP on the ATO’s website.

Depending on the type of software you use, the next step may involve:

  • the STP information being sent directly to the ATO from your software
  • the STP information being sent through a third party sending service provider (SSP) which is integrated into your software
  • the STP information being sent through a third party sending service provider (SSP) outside your software

At the end of the financial year, things will look a little different too. You’ll no longer have to give your employees a payment summary for the information you’ve already reported and finalised through STP. Instead, once you finalise your STP data, employees will be able to lodge their income tax return using STP information available in ATO online services.

You’ll also no longer need to provide the ATO with a payment summary annual report at the end of the financial year.

 

5. Where can I find out more about STP?

For more information and resources to help you comply with the new STP requirements:

 

Making a little effort now to understand your compliance obligations and implement any changes can save a huge headache down the track. Just ask George.

Liability limited by a scheme approved under Professional Standards Legislation. This post provides a general overview and should not to be relied upon as legal advice or as a substitute for legal advice or as giving rise to a solicitor / client relationship. If you want advice specific to your circumstances, please contact us to arrange an appointment.

 

If you need help managing your business reporting obligations, contact our experienced business lawyers at Lawpoint.

14
Mar

The dos and don’ts of social media

Social media can be very serious business these days. Free speech does not mean free of consequences, as the Coopers Brewery case study this week clearly shows. If your social media profile and content does not reflect the expectations of your audience, the backlash can be swift and very costly.

Cooper’s beer featured in a Bible Society sponsored “Keeping it Light” debate about marriage equality between gay agnostic Liberal MP Tim Wilson and his Christian conservative colleague Andrew Hastie.

Some people took exception at the perceived insensitivity to the issue of marriage equality, which is not seen as a “light” issue by advocates and others took exception to the religious affiliation of the brand.

Many individuals and businesses have now publicly boycotted Coopers over its religious affiliation, including our local Newtown Hotel, because they believe Cooper’s social media campaign to be inconsistent with their own beliefs and brand.

To avoid “doing a Coopers” we have put together a checklist of ‘dos and don’ts’ to ensure your tweets and posts don’t have their own unintended consequences.

“Fake news” can cost you-big time

Insulting and derogatory comments may lead to litigation, especially if something you say on social media is defamatory of someone else.

For example, in a 2014 District Court of NSW case, a teacher was awarded $105,000.00 in damages as a result of false allegations made against her on Twitter and Facebook by a former student.

What makes defamatory social media posts even worse and therefore is likely to increase the damages awarded is, as Judge Elkaim noted:

“They are spread easily by the simple manipulation of mobile phones and computers. Their evil lies in the grapevine effect that stems from the use of this type of communication.”

Your real self and social media self are the same

Many people don’t consider that their social media self is a reflection of who they really are-at least as far as many others are concerned, including recruiters and clients.

It takes many years of hard work to build up a professional and personal reputation. This can all be undone if your social media posts are ill considered.

Similarly, your employer has a brand and reputation which it values. Employers are unlikely to be impressed by employees whose social media posts contradict that brand and reputation. They want an employee whose public persona and reputation fits with and compliments their brand.

Hate your boss or your co-workers? Tell your partner, not the world

You may think that it is ok to vent on social media at the end of a taxing and difficult week at work however it may lead to serious problems in the workplace, including claims against you for bullying and harassment.

Complaints about the use of social media have become much more frequent in employment related bullying and harassment claims.

What constitutes “at work” for the purposes of a bullying claim is much broader than what you might think. That is why it is important to consider the content of any social media posts you might feel like making about co-workers, even if they are being made when you are not at work.

In addition, your nasty social media posts about your boss may constitute a breach of your employer’s social media policy which could result in your dismissal. The content of the post may also breach other aspects of your employer’s policies such as policies dealing with discrimination, equal opportunity, sexual harassment or confidentiality. Just because you’re tweeting from the pub over a glass (or three) of wine does not mean that your tweets cannot have serious consequences for your employment.

Think you’re qualified for the job? Think again

Perhaps the most obvious yet most often repeated mistake on social media is the uploading of provocative or inappropriate material.

According to a recent survey:

    • 83% of recruiters are turned off by references to illegal drugs ;
    • 70% of recruiters are turned off by overtly sexual posts;
    • 66% of recruiters disliked posts containing profanity; and
    • More than 50% of recruiters would not hire a candidate who talked about guns on social media.

What this means is that despite how qualified you may think you are for the job or how well you think you did in an interview, if your social media profile is not well considered it is more likely than not that you will not be hired for that all important job.

If you must share such posts, do so privately to a small group of your friends or check your settings to ensure that your profile cannot be viewed by everyone.

A final word of warning

Social media posts can and likely will be used against a person in legal proceedings where possible. Most lawyers are awake to the potential goldmine of evidence available on social media profiles that can be used against a person in litigation matters.

For example, someone claiming to have little money to give to their ex-partner in a family law property dispute is likely to have difficulty explaining all those selfies in exotic and expensive overseas locations or countless images of the latest gadgets and fashion that they have purchased.

Similarly, a plaintiff claiming to have suffered psychological injury resulting in the person withdrawing from social situations will have a lot of explaining to do when presented with regular social media posts showing that person regularly enjoying the local nightlife.

Liability limited by a scheme approved under Professional Standards Legislation. This post provides a general overview and should not to be relied upon as legal advice or as a substitute for legal advice or as giving rise to a solicitor / client relationship. If you want advice specific to your circumstances, please contact us to arrange an appointment via Facebook, email reception@lawpointlawyers.com.au or by calling our office on 9517 1887.