What is Single Touch Payroll?
Single Touch Payroll (STP) is a new electronic method for employers to provide payroll information to the Australian Tax Office at the same time you pay your employees. This information will include details of salaries, wages, PAYG withholding and super information.
STP provides businesses with opportunities for efficiency, particularly around the end of the financial year. Organisations reporting via STP will no longer be required to complete employee payment summaries as payroll information will already be available to employees through the MyGov system.
For employers with 20 or more employees, STP reporting starts from 1 July 2018. Employers with less than 20 employees can report voluntarily.
From 1 July 2019, STP requirements will expand to include all employers regardless of employee headcount.
There are a couple of things as a business owner you will need to do to be ready for STP:-
Check your headcount
If you had 20 employees or more on 1 April 2018 you will need to commence preparation for the STP reporting requirements from 1 July 2018.
Check your Software
Your existing payroll software may need to be upgraded for STP reporting – you will need to confirm these details with your current software provider or accountant.
For employers with 20 or more employees at 1 April 2018, there is an urgency to adopt STP suitable software as soon as possible to ensure that compliance with the reporting requirements are maintained.
If you have less than 20 employees, we recommend that you plan any required adjustment to your payroll systems by later this year.
Our team of Advisors are able to answer any queries that you may have around the introduction of STP and can assist you. Please contact us on 8291 2111.