Is your business Single Touch Payroll ready?
What is it?
Single Touch Payroll (STP) is a new system of reporting wages, tax and superannuation information to the Australian Taxation Office (ATO). Initially, large employers were required to report from 1 July 2018. Now, all employers must enter into the reporting system from 1 July 2019. (Small and micro employers have until 30 September to enter the system.)
STP is a reporting obligation only—it does not change the way you pay employees.
How it works
Employers must submit payroll data to the ATO each time employees are paid. The ATO refers to this as a ‘pay event’.
All the major payroll software providers are compliant with the reporting requirements, allowing employers to lodge the information with the ATO directly from within the software.
All pay events must be lodged electronically.
Eligible micro employers with less than four employees will have simpler reporting options, such as being able to report quarterly through a registered tax or BAS agent.
There are some exemptions for certain employers or employees, such as closely held payees, employers without internet and some foreign workers.
What does it mean for employees?
STP does not change payments, entitlements or pay slips for employees.
Employees will be able to see all year-to-date payroll information online through their individual myGov account.
Instead of receiving a payment summary, employees will receive an ‘income statement’ in their myGov account once the payroll year is finalised by the employer.
If you do your own payroll and will be submitting the pay event information to the ATO yourself, check this link for all you need to know about reporting STP: ATO Report through Single Touch Payroll.
Get STP ready for your first pay run of the new financial year. If you do not already use payroll accounting software with STP reporting built in, talk to us about the best solutions for your business.