Single Touch Payroll reporting starts from 1 July 2018
What is Single Touch Payroll (STP)?
From the 1st July 2018 all employers with 20 or more employees will be required to report to the Australian Taxation Office through Single Touch Payroll (STP) enabled software.
This new reporting method has been put in place to streamline and simplify the way employers report on employees’ payroll information.
Under STP, employers will report payments such as salaries and wages, PAYG withholding and super information at the end of each payroll directly to the ATO.
The introduction of Single Touch Payroll is a significant change that may require many employers to upgrade or replace their existing payroll system in order to meet their payroll reporting obligations.
Benefits of STP
- From 1st July 2019, the ATO will pre-fill payroll fields W1 & W2 into BAS forms, eliminating errors
- Employees have access to their payment information via myGov including income, tax and superannuation
- Payment summaries will no longer be required as employees will have access to information via their myGov accounts. Payroll information will also pre-fill into tax returns
- Employees may have the option to submit employment forms via their myGov accounts to their employers. Forms such as Tax File Number Declarations, Superannuation Standard Choice and Withholding Declarations
Other Key Information:
- Payroll cycles will not be affected and can continue to be paid to employees weekly, fortnightly or monthly
- Payment due dates for PAYG withholding and super contributions will not change
- Employers not ready for STP will need to contact the ATO for a deferral or your accountant can do this on your behalf
- Employers with 20 or more employees on 1st July 2018 will be required to use STP, even if employee numbers drop below 20 during the year
- Employers with 19 or less employees have the option to use STP from the 1st July 2018, but will become mandatory for all employers from the 1st July 2019
For more information about STP you can go to https://www.ato.gov.au/business/Single-Touch-Payroll/ or if you would like to discuss the best STP software provider for your business please don’t hesitate to contact your accountant or our bookkeeping team on 03 5443 8888 or via email email@example.com.