Single Touch Payroll (STP) is an 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, tax withholding and superannuation information. With the STP go-live date looming, the ATO and the Government have been busy releasing information on the practical application of STP in practice.
Below is a summary of some of the key announcements made that may affect you if you are a business that has employees.
- The ATO will offer micro employers (one to four employees) help to transition to STP and a number of alternative options — such as allowing those who rely on a registered tax or BAS agent to report quarterly for the first two years, rather than each time payroll is run.
- Small employers can start reporting any time from 1 July to 30 September 2019. The ATO may grant deferrals on an application basis.
- There will be no penalties for mistakes, missed or late reports for the first year.
- The ATO will provide exemptions from STP reporting for employers experiencing hardship, or in areas with intermittent or no Internet connection.
- Employers who do not have an Australian Business Number (ABN) but instead have a Withholding Payer Number (WPN) are exempt from reporting under STP for the 2018/19 and 2019/20 financial years.
- Insolvency practitioners are exempt from mandatory reporting through STP for the 2018/19 financial year in respect of the entities they administer.
- STP reports lodged by employers will be shared with social security agencies from 1 July 2020.
If you would like to discuss the impact of STP to your business, please contact your 360Private advisor today.