From 1st July 2019, Single Touch Payroll (STP) will apply to all employers regardless of the number of employees they have on payroll. STP was previously introduced by the ATO from 1st July 2018 for businesses with 20 or more employees, however new recent legislation has now extended the requirement to apply to all employers with some exceptions for micro and closely held employers.
STP is an ATO initiative encouraging employers to digitally report payroll more frequently. STP is changing the way employers report to the ATO by providing a platform to report information such as Salary and Wages, Pay-As-You-Go Withholding and Superannuation information at the time when your employee is paid.
How To Get Ready For STP
Employers yet to start reporting through STP will need to undertake a review of their payroll systems because STP reports are submitted directly to the ATO through compliant payroll software (STP-enabled compliant software). When you start reporting through STP you will send your employees payroll and superannuation information to the ATO from your payroll software each payday.
Your business will need to connect with the ATO either via your Auskey, which is a log-in for the ATO Business Portal or if you do not use an AUSkey you can call the ATO to register your Payroll Software ID (SSID).
The ATO payment due dates for PAYG Withholding and Superannuation will not change with the introduction of STP.
For employers currently not using any payroll software, there is an option to use the new Xero payroll only plan that helps businesses that employ up to four employees to embrace online payroll and STP. This new $10 monthly plan is ideal for those businesses who do not feel ready to adopt a comprehensive online accounting software but want online payroll to comply with STP.
Links To Payroll Business Software
Employers will be required to use software that will offer Single Touch Payroll reporting.
Here is a link to STP for various Payroll Business Software Packages available:
Want To Know More?
For More Information check out the ATO’s Single Touch Payroll Page.
Should you have any queries on Single Touch Payroll please do not hesitate to contact our office.