What is Single Touch Payroll (“STP”)?
STP works by sending tax and super information from your payroll or accounting software to the ATO as you run your payroll. Single Touch Payroll (STP) reporting is currently available through payroll, accounting and business management software. Most software providers are offering STP-enabled products.
Who does it affect?
All companies, trusts, partnerships and sole traders that have employees and prepare payroll and annual PAYG payment summaries.
What are the changes?
From the quarter ending 30 June 2019, small employers (with less than 20 employees) are required to report to the ATO using Single Touch Payroll (STP) software at the time they process their payroll. STP is a way of sending employees' tax and superannuation information to the ATO. Small employers can start reporting any time from the 1 July 2019 start date to 30 September 2019 and the ATO will grant deferrals to any small employer who requests additional time to start STP reporting.
Large employers (with 20 or more employees) commenced STP from 1 July 2018. The new law will extend STP to all employers and will help ensure Australians receive their full superannuation entitlements and that PAYG (Withholding Tax) is paid. STP will enable greater transparency, faster streamlined business reporting with the ATO being better informed as to whether employers are complying with their PAYG withholding and superannuation guarantee obligations.
What do I need to do?
STP can be activated now, you do not need to wait until 1 July 2019. Simply contact us for assistance in activating STP in your accounting software.
