Single Touch Payroll (STP) is an ATO initiative aimed at streamlining the way employers report their tax and superannuation information to the ATO.
Effects All Employers
From 1 July 2019, all employers will be required to report salaries, wages, PAYG withholding and superannuation information to the ATO each pay period.
How STP Works
STP works by sending tax and super information from your payroll or accounting software to the ATO as you run your payroll. Your STP-enabled payroll software will send the ATO a report which includes the information we need from you, such as salaries and wages, pay as you go (PAYG) withholding and super information.
ATO systems will match the STP information to the ATO employer and employee records.
Your employees will be able to see their year-to-date tax and super information within ATO online services, which can only be accessed through myGov. Their data is updated every time you report (each pay day for most employers). Without STP reporting, employee data is only reported at the end of the financial year.
At the end of the financial year, you'll need to finalise your STP data. This is a declaration to the Commissioner to state you have completed your reporting for the financial year. This will replace Payment Summaries being issued to your employees.
How does this effect you?
How to report STP
You will require STP enabled software or lodge via a third party. If you already use payroll software, you will need to confirm that it offers STP reporting. If you are using Xero it is STP ready, however you may need to review your subscription.
Not all desktop software providers are offering an upgrade to comply with STP.
If you have 1-4 employee's you can choose a low-cost STP solution. (Refer below table)
How can we help?
For many this is a significant change to how the payroll process operates for your business. We are here to help you work through these reporting changes:
Initial setup of STP-enabled software
Ongoing support and assistance
Processing and reporting your payroll information through our software to the ATO on your behalf
The STP provisions come into effect from 1 July 2019, please action now to ensure you are ready!
If you require our assistance, our wish to discuss your options in greater detail, please contact our office on 02 4957 6999 to arrange an appointment.
Buying or Selling Property? The 1 July Tax Problem You Didn’t Know You Had
June 20, 2016
Thinking of becoming an Uber driver or Airbnb host? Consider the tax implications!