STP is a change to the way employers report their employees’ tax and super information to the Australia Tax Office (ATO).
STP reporting started gradually on 1 July 2018 for substantial employers (those with 20 or more employees).
The information you report will include your employees’ salaries and wages, allowances, deductions (for example, workplace giving) and other payments, pay as you go (PAYG) withholding and superannuation information.
When you start reporting through STP:
- You will send your employees’ payroll and super information to the ATO from your payroll solution each payday.
- Your payroll cycle will not change. You can still pay your employees weekly, fortnightly or monthly.
- Your payment due date for PAYG withholding and super contributions will not change. However, you can choose to pay earlier.
- You may not need to provide your employees with a payment summary at the end of financial year for certain payments you report through Single Touch Payroll. The ATO will make that information available to employees through my Gov.
- You will have the option to invite your employees to complete Tax file number declaration, Superannuation standard choice form and Withholding declaration online.
- When you report to the ATO through Single Touch Payroll, your employees will be able to view their year‑to‑date tax and super information through their my Gov. account.
Employers with 19 or less employees
Legislation to extend Single Touch Payroll to include employers with 19 or less employees is currently before parliament. The Bill has been passed by the Senate with a number of proposed amendments. It has been referred to the House of Representatives to consider the amendments put forward.
For now, you can choose to report through STP. ATO won’t force employers with 19 or less employees to purchase payroll software if they don’t currently use it. Different STP reporting options will be available by 1 July 2019 to help smaller employers.
If you have a query regarding the above or need further information, please contact one of our tax accountants on (02) 9223 9166 to discuss. Alternatively, you can submit an online enquiry form.