Single Touch Payroll has been implemented on 1 July, have you done what you need to? Here’s all you need to know.
What is Single Touch Payroll (STP)?
STP has been initiated by the Australian Taxation Office and changes the way businesses report on employee payments such as salaries, PAYG withholding and super. It’s the biggest payroll reporting change we’ve ever seen in Oz.
Employers now need to report employee payments electronically via a direct digital connection to the ATO every time a payment is made, rather than in a quarterly BAS. Payroll systems do require an upgrade to be able to accommodate this change. The date for this compliance was on the 1 July 2019.
How is STP different to what you’re doing now?
- On pay day, employers must report a ‘payroll event’ to the ATO from their payroll software at the same time as they pay their employees.
- At the end of each year, employers will no longer need to provide payment summaries to employees, or send the ATO a PAYG withholding annual report. Instead, they will need to send a ‘final event indicator’ to the ATO with their final pay.
- Employees will need to be briefed to use their myGov account to interact securely with the ATO to view their year-to-date salary or wage amounts, PAYG withholding and employer superannuation contributions. End-of-year payment summaries are available in myGov.
There are different requirements for businesses of differing sizes so, you can visit the ATO website for more information and find out what is right for you.