Legislation was passed on 12 February 2019 that requires businesses with less than 20 employees to commence Single Touch Payroll (STP) reporting from 1 July 2019. Businesses with 20 or more employees were required to commence reporting from 1 July 2018 unless an exemption or deferral was obtained.
What does it mean for your business:
Help employers streamline their reporting process to the ATO - repopulated information will eliminate potential errors and double handling
Eliminates the need for payment summary processing and end of year reporting obligations
Employees will now have real time access to payroll data via their MyGov account
Being a trade means your always on the go, leaving no time to do the bookkeeping. Ways to save time and money:
Automate your processes-
Go paperless and use cloud-based accounting
Plan for major expenses
Don't get stuck when the big expenses come around
Put money aside for taxes
Just like your big expenses, income tax need to be included in your cash flow forecasting
Keep personal finance seperate from business finances
It's hard to work out how your business is performing if your using the one bank account
The difference between a contractor and an employee is not always clear cut.
Employees work in your business and are part of your business. Contractors are running their own business.
See the ATO Tool Link below
https://www.ato.gov.au/business/employee-or-contractor/difference-between-employees-and-contractors/