FINAL CALL FOR – SINGLE TOUCH PAYROLL (STP)
Single Touch Payroll (STP) was introduced by the Australian Taxation Office in July 2018.
STP is a payroll reporting system that works by sending a report directly to the ATO. You report employees’ payroll information to the ATO each time you pay them through STP enabled software such as XERO or MYOB. The payroll report includes:
- salaries and wages
- pay as you go (PAYG) withholding
While most businesses are now reporting their payroll through this system, some had concessions. This is about to change as you will now have to start reporting through STP.
FROM THE 1ST JULY 2021
If you have a current concession you will need to be reporting each pay day through STP by this date.
Closely Held (related) payees
A closely held payee is an individual directly related to the entity from which they receive payments. From 1 July 2021,closely held payees will need to be reported through STP. If you’re a small employer you can report these amounts on or before each payday, or you can choose to report this information quarterly.
FROM 1 JANUARY 2022 – STP Phase 2
In was decide in the budget to expand the data collected through STP.
The ATO are currently working the key benefits and features of Phase 2 which will include:
- incorporating the reason for an employee ceasing employment to reduce the need for separation certificates
- reporting child support garnishee and deduction amounts voluntarily through STP instead of through the separate manual remittance process
- make it easier for employers to understand their obligations
- help employees understand their earnings and help them with their interactions with Services Australia
- ensure consistency of reporting across the various income types.
Reporting employee payments by income type (or income streams) including:
- salary and wages
- foreign employment income
- closely held payees
- working holiday maker.
Make sure you are ready well in advance and have a software program in place that can meet these obligations. If you are not sure of what you need to do give us a call on 5366 1000 and we can help you get started.