Will Single Touch Payroll apply to you?
If you have employees, short answer is yes... it's more a question of when!
Single Touch Payroll (STP) is a government initiative designed to streamline administration and reporting for employers.
It gives employers the power to automatically report their employee’s salary, wages, PAYG withholding and superannuation details to the ATO – all at the same time as paying employees.
The Single Touch Payroll system will become mandatory for all businesses with more than 20 employees as of 1 July 2018.
These businesses will need to start using STP-enabled software to report the following:
- Payments to employees such as salaries and wages.
- Pay as you go (PAYG) withholding.
- Super information.
You can use a tax professional or payroll service provider to report through STP on your behalf.
From 1 April 2018, employers are expected to do a head count to determine if compulsory Single Touch Payroll reporting will apply to them.
For employers with less than 20 employees, you can voluntarily sign up for Single Touch Payroll from 1 July 2018.
The MYEFO released in December 2017 revealed that STP will become compulsory for ALL businesses, regardless of number of employees, as of 1 July 2019.
Employers may need to update their payroll software to ensure it’s compatible with the STP system. For businesses with more than 20 employees, that update must be completed by 30 June 2018 in time for the start of mandatory STP reporting.
For more information:
Click here to read more from the ATO website.
Click here to read the Institute of Public Accountant’s media release on STP.
If you would like to get in touch with us about STP, you can call 03 9851 7999, or email email@example.com.