Single Touch Payroll
Single Touch Payroll (STP) is a new way for employers to report tax and super information to the ATO. It was introduced on 1 July 2018 for all businesses with 20 or more employees. The laws to extend the Single Touch Payroll (STP) reporting requirements so they apply to all employers with less than 20 employees has now passed the Senate and will be Law.
This means STP is set to be rolled out in stages to smaller businesses with less than 20 employees as at 1 July 2019.
Whilst there are still elements of the STP rollout for smaller businesses that need to be defined by the ATO, what is clear is that you need to be aware of what STP is, and what it will mean for you into the future.
What do you need to know?
STP will require you to have your payroll transaction data transferred to the ATO each time your employees are paid. This may require you to use a software solution that will transmit the data to the ATO on your behalf.
This payroll or reporting system must be STP Compliant, so that each pay cycle you can report the following items to the ATO:
- each employee’s name and tax file number (TFN);
- payments to employees such as salaries and wages;
- pay as you go (PAYG) withholding; and
- any superannuation guarantee obligations.
The ATO has released the following update about STP:
- Micro employers (1-4 employees) will have time to transition and your Accountant will be able to report quarterly for you for the first two years.
- Small employers (5-19 employees) will be given a grace period of until 30 September 2019 to be submitting live pay data.
Closely held businesses have been granted a 1 year exception.
3 STEPS TO BE STP READY
- Does your payroll software support STP reporting?
- When do you need to start reporting using STP?
- Is your payroll team aware of these new changes, and your employee data up to date and accurate?
Our team are here to help you. For STP specific information on your software payroll system and for help in reviewing your software and payroll processes, please contact us on 02 6234 0400 or emailing firstname.lastname@example.org.