The Time Is Now. Single Touch Payroll Is Here!
Let’s get started…
Single Touch Payroll, or STP, is a new process of reporting salaries & wages, PAYG withholding and superannuation information to the ATO. Single Touch Payroll will streamline the process of reporting to the ATO by being able to submit payroll information upon completion. Employers are required to report the PAYG and super information after payroll has been processed, rather than the previous periodical reporting requirements.
Reporting largely depends on the number of employees, and the type of payroll software used.
- Large businesses with 20 or more employees are already required to use STP as of July, 2018.
- Small employers (5-19 employees) must begin using STP this year, as early as July 1, 2019 and no later than September 30.
- Micro employers (1-4 employees) that don’t use a payroll software will have other low-cost STP reporting options available.
Take the necessary steps
- Visit ato.gov.au/STP for any additional information.
- If you have payroll software, speak to your provider to find out if your product is ready or when it will be.
- If you don’t have software, choose a product that offers STP. You can ask your registered tax or BAS agent for advice on choosing a product that suits your business needs.
- Update your payroll software when it’s ready.
- Start reporting to the ATO through STP.
Getting ready for the transition to STP is made easy with help from the ATO. They have provided a Get ready checklist to help employers prepare for STP reporting.
- The ATO will be able to pre-fill the BAS for employers. This helps to eliminate errors and double handling.
- The need to generate and distribute payment summaries for the employees may be eliminated
So what does this mean for employees?
Good news, this change doesn’t only benefit the ATO and the employers, employees receive a benefit as well! Information will be easier to access as an employee through an account with “myGov.” Through your myGov account, you will be able to access your super and year-to-date tax information, and this information will be updated over the time your employer pays you. You may also access your payment summary information and check to see if your super has been paid.
For more information on the effect of STP on employees, and how to set up a myGov account, visit this ATO webpage: What STP means For Employees
STP is here to stay
Since STP reporting became mandatory for employers with 20 or more employees on 1 July 2018, over 60,000 Australian employers, representing around 4.3 million Australian employees, have been successfully reporting through STP (as of March, 2019).
ATO Assistant Commissioner John Shepherd says “Single Touch Payroll is an important change that will deliver benefits for both employers and employees by streamlining payroll processes and providing greater transparency around super entitlements.”
Get ready for STP if you are not already. Have a talk with your registered tax agent or research the ATO articles for more information about Single Touch Payroll.
Please feel free to reach out to our staff here at Tax4u Melbourne with any additional questions, we would be happy to help! You can give our office a call at 0432 583 459 or you can reach us by email at firstname.lastname@example.org