SINGLE TOUCH PAYROLL (STP)

SINGLE  TOUCH PAYROLL (STP)

Earlier today legislation to extend Single Touch Payroll to include employers with 19 or less employees was passed, that means all Australian Businesses will be required to comply with STP reporting from July 1, 2019 which will include over 700,000 businesses.

Employers must report their employees tax and super information to the ATO from 1 July 2019 each time you run your payroll and pay your employees, you will need to send your STP data to the ATO.

This payroll or reporting system must be STP Compliant, so that each pay cycle you can report the following items to the ATO:

  • each employee’s name and tax file number (TFN)
  • gross amount paid
  • tax withheld on the gross
  • ordinary time earnings for the period, and
  • any superannuation guarantee obligations.

The ATO will then report to you each month or quarter the correct amount of PAYG tax withheld to pay in your activity statement. Also, each quarter there will be information available regarding your superannuation obligations to either pay the ATO clearing house or your independent provider.

If your system is already automated with reports that can provide the information listed above for every pay cycle, all you need to do is confirm if your product is STP compliant.

However, if your system is still manual it is now time to discuss and review your internal processes. The STP regime is mandatory for employers of more than 20 staff from 1 July 2018, and will be mandatory for all employers by 1 July 2019.

Our advice is to become STP ready to avoid any fines or penalties in the future from the ATO. In the event that you need a solution or just want your system reviewed, we are happy to help by advising a suitable cost effective solution.

We are here to help you through the process if you need it. Please do not hesitate to contact our office for support.